“The idea was that if they could make a wildcat discovery then they could stake claim and keep the block,” a government source said.

He said the situation was alike to Iraq where the federal government and Kurdistan authorities carry on bickering over concessions to foreign outfits.

Block 5B, is in the southern part of the Muglad basin in south Sudan and wraps 20,000 square kilometers.

In May 2004, OVL acquired over 24% equity in the block by purchasing OMV from a consortium of Petroliam Nasional Berhad (Petronas), Lundin Petroleum AB and Sudapet Company Limited (Sudapet).

OVL later allotted 1% of its equity to Sudapet.