Sudanese presidency directs to enable Total to resume oil operations
December 16, 2007 (KHARTOUM) — The Sudanese presidency directed to implement the decisions of the National Petroleum Commission issued on 17 June 2007 related to the disputed oil block B. and enabling Total to resume oil operations in southern Sudan .
The decision was approved by the presidency among a series of decisions, adopted by the six-member committee, related to the implementation of the Comprehensive Peace Agreement (CPA) and announced on 14 December.
In its resolution of June 17 the National Petroleum Commission, which under the CPA has the authority to assign oil deals stated: “The pulling out of the British White Nile Co from Block B and its removal from entering as partner by purchasing the share of Marathon Co. refrained from the Block.”
The Sudanese presidency also ordered to direct the governors and the traditional leaderships and the military commanders to facilitate the work of the company.
It further directed to facilitate the work of a commission charged to evaluate the assets of the British company.
Since June the French operators didn’t be authorised to start its activities in the oil block despite the fact that it had announced preparations to begin in December 2007.
However, the new decision of the Sudanese presidency seems as tacit refusal of the proposal presented by the southern Sudan government to integrate White Nile in the Nilepet or a new company to replace it.
The southern Sudan government Legal Affairs Minister Michael Makuei said on November 9, that his government would give 55 percent of shares in a planned government-owned oil company to White Nile.
White Nile board member and SPLM prominent member, Edward Lino, said that the company has invested around $75 million in the south.
The issue of the compensation of the White Nile seems preoccupy the southern Sudan authorities. Actually, it was not clear who will disburse the expenditures of the expelled British company.
Also the French operator many times expressed its rejection for the participation of the White Nile in the consortium. However one of the members of the original consortium, Marathon, because of U.S. sanctions, had pulled out of the block.
Total originally had 32.5 percent, as did U.S. Marathon Oil Corp . Kuwaitis had 25 percent and Sudapet 10 percent.
According to the new agreement, Total has operating rights for the block with a 32.5 percent stake, as it was the case in the initial deal, Kuwaiti Kufpec Sudan Ltd 27.5 percent instead of 25% and state-owned Sudapet maintains its 10 percent, the southern Sudan government owned Nilepet 10%. The remaining 20% should be offered in a public bid.
(ST)