Blocks 9

Agreement signed
recently.
2600 km 2D seismic
previously acquired.
3 wells drilled.
Re-process previous
data.
1700 km 2D seismic
and six exploratory
wells planned.
 Block B

1679 km 2D seismic.
Drilling Location
assigned.
Work suspended.
 Halaieb Block

More than 2000 km 2D

seismic acquired.
1 well drilled, with
hydrocarbon shows.
Concession with IPC
since 1995.
Work suspended.
Potential of Free Blocks

Block 8 Block 14
Block 10 Block 13
Block 11 Block 15
Block 12 Block C
 Blocks 8

1996 km 2D seismic
previously acquired.
One well drilled.
Recovered 0.5 BBL of oil
and gas.
Under negotiations with
European company.
Close to agreement.
 Block 10

Three seismic test

lines made.
Area virgin.
 Block 11

3000 km 2D
seismic acquired.
3 wells drilled.
Area virgin.
 Block 12

Gravity and magnetic work by

Ministry.
Other studies by RRI and U of
Berlin.
Geochemical studies
envisaged.
No seismic, no drilling.
Similar to neighbouring
countries.
 Block 14

Gravity and magnetic

surveys.
Other studies by RRI
and U of Berlin.
Geochemical studies
envisaged.
Area virgin.
 Block 13

The Red Sea.

3400 km 2D seismic.
Three wells drilled
with shows.
Still virgin.
 Block 15

Constantly attracting
attention.
7806 km 2D seismic.
9 wells drilled. Two
discoveries.
Table 5, Suakin and
Bashayer.
 TABLE 5
Suakin and Bashayer
Reserves
PROBABILITY

SUAKIN BASHAYER
Gas condensate Red Sand(Gas) Other sand (Gas)
BSCF MMSTB BSCF BSCF

1P 114.0 1.0 25.8 41.7

2P 190.0 32.0 35.7 54.6

3P 276.0 19.0 49.0 70.8

 Block C

1277 km 2D seismic.
2 wells drilled.
 Block C

1277 km 2D seismic.
2 wells drilled.
INSTITUTIONAL
FRAMEWORK
Institutional Framework

The Petroleum Resources Act.

The Council of Oil Affairs.
The Minister.
The Sudanese Oil Corporation; the Oil
Exploration and Production Authority
(OEPA).
The Joint Coordination Committee.
Obtaining a Concession in the Sudan.
Negotiating an Agreement.
 The Petroleum
Recourse Act
First Issued 1972.
Amended 1975.
1972 Act and amendment repealed
and replaced by a new Act in 1998.
Regulates all oil affairs.
The Council For Oil Affairs

Mini Cabinet: The president +5 ministers.

in addition to six experts.
Sets the polices and by-laws for Oil Sector.
Structures the Sudanese Oil Corporation.
Approves Agreements.
Approves tax and customs exemptions.
Meets quarterly.
Remains in session when required for the
approval of agreements.
 The Minister

The Minister of Energy & Mining.

Vice-Chairman of the Council for Oil
Affairs.
Signs Agreements on behalf of
Government.
Approves work program & budget.
Approves expenditure above limit of
authority of JCC .
Reference for all issues on agreements.
Oil Exploration & Production
Authority (OEPA)

Department Of the Ministry within the

Sudanese Petroleum Corporation.
Technical, financial and administrative
support.
Supervises execution of agreements.
Coordinates all activities of Contractor with
Government departments.
Represents Government in Joint
Coordination Committee (JCC).
 Joint Coordination
Committee (JCC)
Joint Committee between
Government & Contractor.
Facilitates work and expedites
approvals.
Reviews & endorses Work Prog. &
Bud. for approval.
Approves expenditure in excess of
the limit of authority of Contractor.
 Exploration and Production
Sharing Agreements

Production Sharing Freedom of Operations.

Agreements. Employment of
Duration. Sudanese Nationals.
Work Programme &
Health, Safety & the
Budget.
Environment.
Relinquishment.
Points of Comfort.
Bonuses.
Tax & Customs
Guarantees.

Exemptions. Approvals.
Law, Jurisdiction &
Arbitration.
 Obtaining a Concession

Technical and financial pre-qualification.

Letter to the Minister.
Review preliminary data.
Obtain additional data (if necessary).
Confirm interest.
Receive model agreement and forms for fiscal
parameters.
Forward forms.
Start negotiations. Fiscal first then text.
Sign Agreement.
DOWNSTREAM OPERATIONS
 Refining

Port Sudan 25 KBPD preserved awaiting

expansion.
Khartoum 50 KBPD to Expand to 100
KBPD.
Al Obeid 10 KBPD.
Abu Gabra 2 KBPD.
Concorp 10 KBPD shutdown.
 Transportation

Crude Oil Pipeline 28 inch, 1530 km.

150 KBPD, 3 Stations.
250 KBPD, 6 Stations.
450 KBPD, 11 Stations.
Operating capacity exceeds design capacity by
about 20%.
1975 products Pipeline 8 inch 800 km Light
products.
Export section (northeast).
Local Distribution Section (southwest).
Road and Rail provide about 75% of the local
distribution requirements.
 Other Petrochemical
Industries

Base Oils not produced.

Several lub. Oil blending plants, for local
consumption and export to neighbouring
countries, operate.
Small polypropylene plant commissioned Jan
2002.
 EXPORT PIPELINE

Owners of Blocks 1,2 & 4 + Government.

Exclusive right along route from Heglig to
Bashayer. 1530 km.
28 Inch up 500,000 BPD.
60% for Blocks 1,2 & 4.
40% for third parties.
Obliged to expand to retain Exclusive right.
Common carried approach.
MARKETING
 Local Marketing

Subsidized prices controlled by

Government.
Moving towards free market.
Four distribution companies in the past.
Availability of products. Improved
margins of profit.
More companies, national and
international.
 International Marketing

Pre-qualified companies only.

International tenders for Crude Oil and
products.
Term contracts.
Crude Price formula basis Minas.
Process transparent.
 proceeds
Sales through L.C. in favor of
Government.
711 Million USD in 2000
Estimates for proceeds lower for 2001 &
2002.
Utilization by Ministry of Finance.
Repayments to international Financial
institution, Regional states, Development
projects, the Agriculture & Social
subsidies.