Sudan declines extension of oil contract with Canadian firms

July 30, 2018 (KHARTOUM) – The Canadian Stamper Oil & Gas Corp has failed to secure an extension to an agreement to operate Block 25 with the Sudan National Petroleum Corporation, Sudapet.

The tiny $16 million company, earlier this year, said the probable reserve of the Al-Rawat field is at around 182 million barrels with significant potential room to grow.

According to the MoU which initially was signed with State Oil Corporation, Stamper may farm-in up to a 50% interest of the Al-Rawat field.

The Oil Review Africa reported on Monday that the chairman of State Oil Corporation, Lutfur Rahman Khan, failed to secure an extension to the MoU with the state-owned oil company, Sudapet.

” As a result of these developments, the board of Stamper has notified State Oil Corporation that the MoU between Stamper and State has been terminated,” further said the report.

Sources close to the file in Khartoum told Sudan Tribune that the Sudanese authorities realised that the Canadian oil firms, State Oil Corporation and Stamper which acquired the former, do not have the expertise or financial resources to carry out oil exploration and production works.

The deal with the small Canadian firm “has been a symbol of Sudan oil industry going astray. It also shows “how desperate” the Sudanese officials were, he added.

The fact that Sudan was under the U.S. economic embargo discouraged the big oil firms from working in the east African country.

(ST)