Sudan offers oil as payment for power project
Bharat Heavy Electricals Ltd (BHEL) is likely to revive an agreement to set up a 1,000 Mwpower generation project in Sudan, for which that country has offered to pay in crude oil, two senior company executives said.
BHEL is already constructing the 500 Mw Kosti thermal project for the National Electricity Corp. —Sudan’s largest power project, expected to be commissioned this year. The Indian government has given a US $350 million (Rs 1,554 crore) line of credit for the turnkey contract, which is valued at US $457 million.
The Kosti agreement between BHEL and NEC was signed in 2006. At that time, a memorandum of understanding (MoU) for capacity expansion of the project was also signed, in which Sudan had offered to pay back in crude oil.
“Sudan wants to revive the MoU and wants us to set up a 1,000 Mw project at Sudan port instead of Kosti, as their load centre is there, through a line of credit given by the Indian government. They have also offered us to make payments through crude oil or cash,” said a senior BHEL executive. “Since this is one of the ways to help the country’s quest for energy security, we will pursue this opportunity,” he added. The 1,000Mw project could require an investment of US $1 billion. The revived MoU is expected to be inked soon, the official said. – Mint
Sudan produces around 520,000 barrels of oil a day. Three of its 22 oil blocks are yet to be explored.
