Sudan in talks with international oil companies

04 February 2003
Sudan aims to have completed agreements with international oil companies by the end of March for the drilling rights to three exploration blocks, Oil Minister Awad al-Jaz said on 3 February. Al-Jaz said that the ministry was negotiating with companies from the Middle East, Europe, Asia and South Africa over the rights to Block 8 in the southeast Blue Nile region, Block 9 near Khartoum and Block 15 on the Red Sea coast. Romanian's state-owned SNP Petroleum is first in line for Block 8 while a number of UK companies are interested in Block 15, said Al-Jaz. The minister denied that companies had been put off by the withdrawal of Canada's Talisman Energyfrom the Greater Nile oil project (MEED 21:6:02). Russian/Belarussian oil company Slavneftpulled out of its exploration contract on Block 9 in August, blaming political risk and lack of profitability. There is no accepted figure for Sudanese oil reserves, but the US' Energy Information Administration uses a conservative figure for 'estimated proven' reserves of 262.1 million barrels (MEED 9:8:02).

Al-Jaz also said that Sudan planned to increase its output of refined products by expanding capacity at the Khartoum refinery to 100,000 barrels a day (b/d) from 50,000 b/d by the end of 2003. On 6 February, the government plans to issue a tender for the construction of a 730-kilometre pipeline linking the Al-Fula oil-producing area with the refinery.

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