BackOVL shuts oilfields in South Sudan; UN resolution addresses Indian concerns
OVL also evacuated all of its 11 executives working in the African nation
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New Delhi: ONGC Videsh Ltd (OVL), the overseas arm of state-owned Oil and Natural Gas Corp. Ltd (ONGC), on Thursday said it has temporarily shutdown oilfields in South Sudan following escalation of violence in the world’s youngest nation.
OVL, which has stakes in two oil projects in South Sudan, also evacuated all of its 11 executives working in the African nation, the company said in a statment.
The firm holds 25% stake in the Greater Pioneer Operating Project which produces 37,000 barrels of oil per day (bpd) and 24.125% in Block 5A that produced 4,600 bpd.
“Following the deteriorating security situation in the country (South Sudan) from 15 December 2013, the joint operating companies decided to temporarily shut down the operations in their oilfields," the statement said.
The shutdown was executed methodically as per its standard shutdown procedure, ensuring safety of personnel and equipments and smooth resumption of operation immediately after normalisation of the security situation.
“Following the shutdown, the production from the oilfields was completely stopped from 22 December," it said.
The Greater Pioneer Operating Co. (GPOC) produces close to 37,000 bpd (OVL share 9,250 bpd) from Block 1,2,4 while SUDD Petroleum Operating Co. (SPOC), where OVL has 24.125 per cent stake, produces close to 4,600 bpd (OVL share 1,100 bpd) from Block 5A.
Other partners in GPOC are China National Petroleum Corp. (CNPC) with 40% stake, Petronas of Malaysia has 30% and Nilepet of South Sudan the remaining 5%. In Block 5A, Petronas has 67.875% and Nilepet 8%.
“Due to the adverse security situation, OVL in coordination with the Indian Embassy in South Sudan has evacuated all its 11 personnel posted in South Sudan. Other partners of OVL in the assets have also evacuated most of its personnel from the country," the statement said.
OVL said it is closely monitoring the security situation in the country and is in constant interaction with its partners in the assets and the Indian Embassy at Juba. “Operations will be resumed once the situation is normalized."
Fighting in South Sudan, which broke out when rebel forces loyal to deposed South Sudanese vice-president Riek Machar attempted a coup, has already claimed as many as 500 lives, including Indian soldiers working as United Nations peacekeepers.
The US has evacuated its 380 officials and private citizens to Nairobi and other locations along with about 300 others. South Sudan seceded from neighbouring Sudan in July 2011 and took three-quarters of the formerly united country’s oil output. Landlocked South Sudan has sub-Saharan Africa’s third- largest oil reserves after Nigeria and Angola. The oil produced in OVL’s fields and other projects in the country are exported through pipelines across neighbouring Sudan.
Meanwhile, India’s strong concerns over the security and mandate of its peacekeepers in South Sudan found support from several UN Security Council (UNSC) members who unanimously passed a resolution that directly addresses the situation faced by Indian soldiers.
While India is not in the Security Council, it was able to “influence" the UNSC resolution in a “significant manner", as it highlighted key issues “pro-actively" with the powerful UN body. India, which has lost seven of its soldiers this year in the world’s newest country, highlighted issues related to the mandate of the UN Mission in South Sudan (UNMISS), especially the difficult conditions in which the Indian peacekeepers work, standing in frontline of the violence.
People familiar with the matter told PTI that India’s views were found to be relevant by UNSC, with Gerard Araud, permanent representative of France to the UN and current president of the Security Council, referring to this in his remarks at the beginning of the UNSC meetings on South Sudan.
India was also able to work closely with the “pen-holder country", the US, in the final language of the South Sudan resolution that approved a temporary increase in the strength of UNMISS to up to 12,500 military personnel and 1,323 policemen from a current combined strength of 7,000. India got “valuable support" for its view from Russia and troop contributing countries such as Pakistan and Guatemala inside the council.
India’s main concerns related to the mandate of UNMISS based on the Security Council resolution of 2011 that focuses on responsibility for protection of civilians as part of peacekeeping. India pointed out that the sudden upsurge of violence between the two main ethnic groupings in South Sudan has the potential of unleashing a civil war, which would “alter the terms of reference of the presence of UNMISS completely", a person familiar with the matter said.
India noted that the main driver of the current violence in South Sudan is the inter-tribal or ethnic conflict, a concern that has been reflected in the first paragraph of the UNSC resolution. Tensions within South Sudan, which gained independence in 2011 after seceding from Sudan, burst out into open conflict on 15 December when the government led by President Salva Kiir said soldiers loyal to former deputy president Riek Machar dismissed in July launched an attempted coup. “Unless both sides agree to resolve their differences politically and peacefully through dialogue, the peacekeeping mission cannot be sustained," the above cited person said.
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