Sudan signs oil exploration deal for new Block E

August 6, 2010 (KHARTOUM) – Sudan’s oil ministry signed Friday a new deal with a small oil and gas exploration firm based in Luxembourg to explore a new block called E which runs through five states in southern Sudan and Darfur.

The long slim Block covers an area of approximately 50,000 km2, and has a potential estimated in 2 Billion Barrels of oil. It is located over the south margin of the Muglad basin where more than 10 billion barrels of oil have been discovered.

Block E traverses four southern states — Northern Bahr el-Ghazal, Western Bahr el-Ghazal, Lakes, Warrap — and South Darfur in north Sudan.

The contract was signed by the Sudanese oil minister Lual Deng and Farshad Zandi of Star Petroleum company which takes a 75 percent share of the block. Also were present at the signing ceremony Southern Sudan oil minister and the governors of the concerned states.

The official SUNA said Zandi signed the deal on behalf of Star Petroleum company and the Norwegian Hamla company, which holds five percent share. Sudan’s two national oil companies, Sudapet and Nilepet of southern Sudan, would take the remaining 20 percent.

Speaking to Reuters, Zandi who is Iranian by origin and holds Spanish passport called on European firms to invest in Sudan.

“Come and invest in Sudan, there are many professional people and great opportunities this is our message to all of the European companies,” he said.

The Star company was candidate to join Total in Block B earlier this year to take the share of the American Marathon Inc after the withdrawal of the Emirate Mubadala, but the French operator was reluctant to work with this new partner.

(ST)