Home | News    Sunday 29 November 2020

Sudan owes $3 bln to Chinese oil firm and partners

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Sudanese soldier guards and oil facility

November 28, 2020 (KHARTOUM) - Sudan’s total debt to the China Petroleum Corporation and foreign partners amounts to $ 3 billion, a Sudanese official said on Saturday.

The China National Petroleum Corporation (CNPC) is one of the largest oil companies operating in Sudan. However, the government announced last week its intention to terminate the contract with it in the Block No 6.

The Undersecretary of the Ministry of Energy and Mining, Hamid Suleiman, told "Sudan Tribune" Saturday that Sudan pays debts with partners in the oil industry by deducting a percentage of oil transit fees.

"The total debts of the oil industry amounted to 3 billion dollars, of which 2.5 billion dollars to the Chinese Petroleum Corporation (CNPC) in addition to 500 million dollars to its partners from India and Malaysia," said Suleiman.

Sudan’s oil industry is experiencing a crisis as a result of the decrease in oil production to less than 60 thousand barrels per day, in addition to the deterioration of the price of a barrel on the global market.

The official indicated that significant amounts of the debit have been paid so far to all oil industry partners.

Also, he noted that it is always possible to review agreements with China, which is a "strategic partner".

"We are keen on China’s continuation in the Sudanese oil industry," he asserted.

On Tuesday, the Ministry of Energy and Mining officially notified the CNPC of the expiration of its concession in Block 6 of Muglad Basin in West Kordofan State.

The agreement expires on December 31, but the ministry said that the contract can be renewed under new conditions.

Sudanese officials say that it is no longer possible for the Chinese company to get 95% of the shares leaving only 5% to the government-owned Sudapet.

Suleiman revealed that talks had been held during the last period with American and European companies to invest in oil production after removing Sudan from the list of state sponsors of terrorism.

Sudan is expected to be delisted next month.

(ST)

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