ONGC Videsh Ltd (OVL) and the Government of Sudan have held talks to mitigate the issue of default on payment dues to OVL.

The talks began on August 7 when a Sudanese Government delegation reached Delhi. An OVL statement said, “It was informed that the Government of Sudan is hopeful that its economic situation shall be improving henceforth with the recent agreement it reached with the Government of South Sudan on resumption of crude oil transportation from South Sudan territory through the Heglig-Port Sudan pipeline.”

OVL had dragged Sudan to an international arbitration court to recover over $ 400-million unpaid oil dues pending since 2011. The claim has been filed in a London court to recover about $ 300 million for the oil Sudan bought from its Greater Nile Oil Project and another $ 98.94 million unpaid pipeline rent lease.

The visiting delegation had requested ONGC Videsh to withdraw the arbitration process instituted against the Government of Sudan.

The OVL statement said, “It was further informed by ONGC Videsh that keeping the legal intricacies in view, the arbitration process can continue while both sides work together on a suitable mechanism for resolving the issues.’’

OVL agreed to depute a team of senior-level officials to Sudan for initiating techno-commercial discussions afresh to workout way forward for the settlement of past dues. Subsequently, the ONGC Videsh team had arrived at Khartoum on August 13 and discussions with the Sudanese side are currently ongoing, the statement added.

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