India Intelligence Report

ONGC Invests 250 m in Sudan


ONGC Videsh Limited and Bharat Heavy Electricals Limited (BHEL) have teamed up to invest USD 350 million in a 500 megawatt (MW) project in Sudan. BHEL will also construct a transmission line at an additional cost of USD 41.9 million as a loan to Sudan. That loan is for a period of 9 years backed by oil guarantees; if Sudan defaults on the loan, they can pay with oil. This is the 2nd project for OVL in Sudan-- it has just completed a 741 kilometer oil pipeline. OVL may double its current investments in Sudan to USD 2 billion through contractually obtaining more oil exploration blocks and oil refineries.

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