sudan news record

Saturday, April 16, 2005

Videocon looks at oil fields in Sudan

Videocon looks at oil fields in Sudan
Sify - India
Saturday, 16 April , 2005, 11:01
Videocon Industries Ltd will spend Rs 800 crore in overseas exploration and production activities over the next two years, said sources. Videocon was in talks to invest in oil fields in Sudan, and was also considering Ukraine -- both rich in energy resources. The company will also spend around Rs 1200 crore in exploration and production in India and after it raises Rs 2000 crore in global depositary receipts, a fund-raising due to be promoted next month. Videocon signed a memorandum of understanding with the government of Khartoum province in Sudan last month for investing and developing oil projects there.
The company planned to take a stake of up to 76 per cent in an offshore Sudanese field located in the Red Sea, which it will explore along with a consortium of global partners. The company will visit Ukraine next week to explore its investment potential and it might consider investing in Russia and other countries in the Middle East and Africa. Videocon, which has been in the energy industry for 12 years, plans to step up investment, given the demand for oil. Dhoot estimates Indian oil demand will grow 12 per cent this year. The company plans to bid for 20 blocks offered by the government under the New Exploration Licensing Policy (NELP).
The Videocon group, which also makes TVs and home appliances, already owns 25 per cent of the Raava oil field, located in the Krishna-Godavari basin off India's eastern shore, which produces 50,000 barrels of oil a day that is sold to Indian oil companies. Energy-hungry India, which imports 70 per cent of its oil and barely produces the gas it consumes, has been encouraging companies to chase up energy ventures. State-run Oil and Natural Gas Corp Ltd, India's largest oil producer, is already active in Sudan with equity stakes in some projects


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