VENTURES AFRICA – Deals for the exploration of 9 blocks were signed by the Sudan government with selected foreign companies. According to a Sudanese senior oil official, the deals are for oil exploration and production-sharing on the blocks.
The deals will inject investments worth $1 billion in Sudan as the nation strives to control its big loss in oil revenues.
While speaking on Thursday, Sudan’s State Oil Minister, Ishaq Adam Gamaa mentioned the foreign firms who had signed agreements. They are Canadian firm Statesman Resources Ltd as well as Chinese, Nigerian, Australian, Brazilian and French companies.
In addition, the state-owned oil and gas firm Sudapet was also included in the deals.
“The initial investment needed for these blocks is $1 billion. It will not be cash given to Sudan, but money that will be invested by those companies,” Gamaa told Reuters.
He also hinted there won’t be production at the new blocks for several years during which the companies are expected to be carrying out magnetic surveys, seismic data and drilling of exploratory wells.
“We cannot say when we’ll produce. There are several activities that need to be done towards production. They will take several years,” he said.
The minister described the interest of the government in the deals which he said is to ensure domestic demands are met while the surplus should be exported for revenue generation.
Sudan is currently producing 115,000 barrels per day (bpd) but it plans to increase it by 65,000 bpd by the end of 2012.