India’s ONGC files arbitration claim against Sudan over unpaid oil dues

India’s Oil and Natural Gas Corp’s acquired a 25 percent stake in the Greater Nile Oil Project in Sudan in 2003. (Reuters)
Updated 17 April 2018
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India’s ONGC files arbitration claim against Sudan over unpaid oil dues

NEW DELHI: The foreign acquisition unit of India’s Oil and Natural Gas Corp’s (ONGC) has filed an arbitration claim against the government of Sudan in a London court, a company official said, seeking to recover dues pending for years from a project hit by the breakaway of South Sudan in 2011.
People familiar with the matter in India and Sudan said ONGC had filed a claim for $98.94 million, in what they said was a first for the South Asian nation’s top oil and gas explorer against any government. They declined to be identified because they weren’t authorized to discuss the matter with media.
At the center of the dispute is ONGC’s 25 percent stake the company acquired in the Greater Nile Oil Project (GNOP) in Sudan in 2003. Other stakeholders include China’s China National Petroleum Corp. with a 40 percent stake and Malaysia’s Petronas with a 30 percent share.
“Yes, we have filed an arbitration as our dues have been pending for years,” said N. K. Verma, managing director of ONGC Videsh Ltd. (OVL). “Notwithstanding this arbitration we will continue to work with Sudan going forward,” he said, declining to provide details on the timing and location of any hearings, or the amount being sought.
The current arbitration is only for a part of pending dues that add up to about $425 million, sources said, adding ONGC has sued the government as the contracts were backed by sovereign guarantees.
ONGC will also file arbitrations for the remaining outstanding amount in due course, said a company official, who declined to be identified.
Officials in Sudan said contacts and negotiations with ONGC were being lined up.
“We have addressed the company (ONGC) to show our commitment to serious negotiation and we (have) set up a committee to determine the time frame to pay back the sum in installments,” said Bekheet Ahmed Abdullah, under-secretary for Sudan’s Petroleum Ministry.
OVL’s stake in the Greater Nile Oil Project comprised Blocks 1, 2 and 4, and the firm also agreed to build a 1,500-kilometer pipeline to Port Sudan on the Red Sea. But in 2011 South Sudan broke away from Sudan, after decades of civil war, and took control of blocks 1A, 1B and a part of block 4.


Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

Updated 25 April 2019
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Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

  • SRC CEO Fabrice Susini: One of our key objectives is to ensure that the banks are extending loans to more and more people
  • Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production

RIYADH: The head of the state-owned Saudi Real Estate Refinance Company (SRC) has made an unprecedented offer to the Kingdom’s home-seekers to underwrite future mortgages.
Speaking at the Financial Sector Conference in Riyadh, Fabrice Susini, SRC CEO, told the audience: “Ask them (the banks) for a mortgage, and we will refinance it.”
Although Susini later clarified his remarks to show that he still expected normal standards of mortgage applications to be met, the on-stage show of bravado illustrates SRC’s commitment to facilitate home-ownership in the Kingdom.
“Obviously if you have no revenue, no income, poor credit history, that will not apply. Now if you have a job, it is different. We have people in senior positions at big foreign banks that could not get a mortgage,” he explained.
He said that Saudi banks have traditionally assessed mortgages on the basis of “flow stability” of earnings. Government employees, or those of big corporations like Saudi Aramco and SABIC, found it easy to get mortgages “because you were there for life.”
“One of our key objectives is to ensure that the banks are extending loans to more and more people. The government is pushing for entrepreneurship, private development, private jobs. If you work in the private sector and cannot get a mortgage the next thing you will do is go to the government for a job,” Susini said.
Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production. Saudi Arabia has one of the lowest rates of mortgage penetration of any G20 country — in single digit percentages, compared with others at up to 50 percent.