Sudan, Finnish company sign oil and gas exploration deal in the North

August 19, 2010 (KHARTOUM) — Sudan’s oil ministry and the Finnish firm, Fenno Caledonian signed today an oil and gas exploration agreement for block 10 located in east northern part of the country.

Block 10 is located in the four states of Gedaref, Kassala, River Nile, and Gezira, and covers an area of 83 183 kilometers. The pipeline transporting oil to Port Sudan, where is a refinery, crosses the block.

According to the 30 USD million deal signed on Thursday in Khartoum, Fenno Caledonian holds 85% and the state owned Sudatel takes 15%.

The head of the Finnish company, Heikki Jutila, told Reuters that they believe Block 10 may has gas or oil “because the adjacent Block 8 had gas showings”.

Fenno Caledonian works on Block 14 in Dongola, capital of the state of Northern in Sudan.

Oil minister Lual Deng commended the role played by oil sector in the recovery of economic sector, pointing out that the signing of the deal indicates the entry of European investment to the Sudan.

In a press conference held on Wednesday, Lual said Sudan is working on boosting oil output to at least 600,000 bpd in 2011.

Deng further said current average output is now between 450,000 and 470,000 bpd from the two blends — Nile and Dar. That could reach 650,000 bpd on the back of increased production from Block 6 and more efficient oil recovery techniques, he stressed.

“For next year, all things being equal, we expect between 500,000 and 600,000. We are aiming at 650,000” bpd.

With the perspective of the independence of Southern Sudan where there is the major part of Sudan’s production, the central government launched signed many agreements for gas and oil exploration in northern Sudan.

(ST)