The Cabinet Committee on Economic Affairs on Saturday cleared ONGC Videsh Ltd's proposal to acquire stake in two oil blocks in Sudan.
"The CCEA has cleared OVL's acquisition of 26.125 per cent stake in exploration block 5A and 24.5 per cent stake in block 5B from Austria's OMV," a senior government official said after the CCEA meeting in New Delhi.
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OVL already owns a 25 per cent stake in the Greater Nile Petroleum Operating Company in Sudan that it bought from Talisman Energy of Canada earlier this year.
Block 5A, which contains the undeveloped Thar Jath field with gross proven and probable oil reserves of 149.1 million barrels, has Petronas Carigali Overseas Sdn Bhd of Malaysia as operator with 68.875 per cent stake. Austrian oil and chemical group OMV holds 26.125 per cent and Sudan's national oil company Sudapet, the remaining 5 per cent.
In Block 5B, Petronas has 41 per cent, Sudapet 10 per cent, OMV 24.5 per cent and Swedish oil concern Lundin Petroleum AB 24.5 per cent.
Block 5A, located in the Muglad Basin in southern Sudan, contains an undeveloped Thar Jath field, which has gross proven and probable oil reserves of 149.1 million barrels.
Third party estimates put the possible potential reserves in the block, which measures 20,917 km and has four previously drilled wells, at over 2 billion barrels.
Block 5B is a large block of 20,119 square km and is located in the Sudd swamp. Gravity and seismic interpretation show that Muglad rift basin extends into Block 5B and that the structural style in the area is similar to the rest of the basin where more than 1 billion barrels of oil have been discovered to date.