New Delhi: Sudan government is believed to have vetoed Malaysian oil major Petronas' move to buy Talisman Energy in Greater Nile Oil project and has favoured state-run Oil and Natural Gas Corporation Videsh Ltd (ONGC) for picking Canadian firm's 25 per cent stake.

Diplomatic sources said Sudanese government has vetoed the pre-emption right exercised by Petronas to buy Talisman's stake for $ 720 million, the price agreed between Talisman and OVL for stake change in the oil fields.

Investor relations & corporate communications manager of Talisman Energy Inc David Mann said, "The government of Sudan has given consent and approval in-principle and stated its support of the sale to OVL."

However, all necessary consents and approvals would take another seven to 10 days and OVL, the overseas arm of ONGC, was likely to sign contract and pay $ 720 million to Talisman next month.

Stating that substantial progress has been made towards obtaining the necessary consents and approvals, Mann said in absence of all requisite consents, the sale would not be completed by January 31 as previously anticipated.

The deal was referred to Sudan government after partners in the project Petronas (25 per cent) and CNPC of China (40 per cent) exercised their contractual first right to buy, sources said adding Sudanese Law does not permit any foreign company to hold more than 40 per cent interest in any field.

Sources said OVL would take over all the 80-odd employees of Talisman to step into the Canadian firm's job of managing the 1,500 km pipeline connecting the producing fields to Port Sudan on the Red Sea.

PTI