Sudan, China discuss oil cooperation
October 7, 2024 (PORT SUDAN)—Energy and Oil Minister Muhyiddin Naeem Mohamed Saeed said on Monday that Sudan is renegotiating oil cooperation agreements with China.
Speaking to reporters in Port Sudan, Saeed said the talks aim to revive and expand cooperation with China, a key partner in Sudan’s oil sector.
He said the discussions include addressing outstanding debt and increasing oil production.
“We are making good progress on all levels,” Saeed said, according to the official SUNA, adding that new agreements have been reached to rehabilitate the Khartoum refinery, inspect and repair pipelines, and resume oil exploration.
The Khartoum refinery, constructed by China and operational since June 2000, had a daily production capacity of 100,000 barrels. However, the oil installations suffered damage during the 18-month conflict.
The minister estimated losses in the oil sector have exceeded $18 billion since August, with Sudan’s oil infrastructure totalling $55 billion.
Saeed downplayed the impact of a recent attack on the Khartoum refinery, saying oil production has continued despite the ongoing conflict.
“Despite the war, we have managed to produce a tanker every 29 days, compared to 45 days at the start of the conflict,” he said.
Sudan has liberalized the petroleum sector to address fuel shortages, allowing private companies to import fuel.
Saeed said 32 companies are now operating in the sector, with the ministry focused on regulation and ensuring adequate supply.
He expressed confidence that fuel shortages and queues have been resolved, adding that Sudan previously overspent on fuel imports.
He disclosed that current oil production is only 20% of potential capacity, highlighting the presence of significant natural gas and gold reserves in the Red Sea.
He said Russia, Saudi Arabia, and Turkey are interested in investing in Sudan’s oil and gas sector.
Saeed acknowledged challenges in the sector, including damage to infrastructure and security threats to oil workers.