Upstream, the project covers: the construction of a central processing facility (CPF) with capacity to handle up to 300,000 barrels a day (b/d) of oil; two field production facilities (FPFs); 100 kilometres of gathering lines; 160 kilometres of in-field flowlines; two captive power plants located at the Palogue FPF and Al-Jabalayan CPF; and up to 100 kilometres of overhead power transmission line.

The downstream package covers the phased construction of up to 1,400 kilometres of 32-inch-diameter crude export pipeline. The first element is for 650 kilometres of pipeline linking Palogue pumping station 1 with the Al-Jabalayan CPF and pumping station 4, just south of Khartoum. The second covers the construction of 740 kilometres of pipeline from pumping station 4 to an export marine terminal which is planned for Port Sudan.

In addition to the main pipeline, the downstream package calls for the construction of six pumping stations in the first phase, with a requirement for another 11 stations in the final phase of development. The contract also calls for the installation of a supervisory control and data acquisition (SCADA) system, telecommunications networks and the construction of a single-point mooring marine export facility.

Up to 10 groups from a list of 12 prequalifiers are understood to have already bid for the downstream pipeline project, which is to be let on an engineering, procurement, construction and commissioning (EPCC) basis. Malaysia's OGP Technical Servicesis acting as the project management consultant on the scheme.

The project will harness an estimated 3,700 million barrels of oil reserves, of which 740 million barrels are proven, locked in blocks 3 and 7 of the Melut Basin. Production is scheduled to start from the area in late 2005 at a rate of 170,000 b/d, rising to 300,000 b/d in late 2006. Sudanese production of about 350,000 b/d of oil is expected to almost double to 600,000 b/d by 2005.