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Canadian firm resumes oil exploration in Sudan

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Alfula Crude Oil and Natural Gas-fired Power Plant, Sudan (Lahmeyer Photo)
October 22, 2017 (KHARTOUM) - The State Oil Company Canada Ltd has signed a memorandum of understanding with Sudan’s state-owned oil firm Sudapet allowing it to get 50% of the latter’s share in the Al-Rawat oilfield.

In 2014, Sudan’s oil ministry signed oil exploration contracts with three companies, including the State Oil Company Canada Ltd and Nigeria’s Express Petroleum & Gas Ltd, to work in Al-Rawat field, White Nile state.

However, the State Oil Company Canada Ltd later withdrew from the partnership. As a result, Sudapet owned 70% of the shares while the two Nigerian firms share the remaining 30% equally.

The big Blok 26 or Al-Rawat field is mainly located in White Nile state but other parties are in Sennar and North Kordofan states. The oilfield is located near the pipeline which links Adarail oilfield in South Sudan to Port Sudan.

The exploration activities in this block include oil and gas. It is part of government’s efforts to increase the country’s daily production to 200.000 barrels.

In a press release following his meeting with the head of the delegation representing the Canadian firm Fath al-Rahman Khan Sunday, Sudan’s Minister of Petroleum Abdel-Rahman Osman said the “opportunity is now available to increase the oil production”.

He called upon the Canadian firm “to work to explore and promote the existing production of Sudapet at a number of oilfields”.

For his part, Khan expressed his company’s desire to resume its exploration and oil production activities, saying they will kick off their work after the signing of the contract with Sudapet.

According to the press release, “the technical teams from the two sides have engaged in business talks in preparation to sign the contract according to the regulations and laws governing the work of the oil sector”.

Sudan lost 75% of its oil reserves after the southern part of the country became an independent nation in July 2011, denying the north billions of dollars in revenues. Oil revenue constituted more than half of the Sudan’s revenue and 90% of its exports.

The East African country currently produces 133,000 barrels of oil per day (bpd). The country’s production is stationed mainly in the Heglig area and its surroundings, as well as western Kordofan.

(ST)

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