HYDROCARBON EXPLORATION

AND SERVICES POTENTIAL

IN THE SUDAN

18th JUNE, 2002

CONTENTS
Upstream Operations.
Occupied Blocks.
Potential of free Blocks.
Institutional Frame work.
Downstream Operations.
Marketing.
UPSTREAM OPERATIONS
 PRELUDE

Earlier belief is that the Sudan interior

basins do not contain any Hydrocarbons.
Satilite surveys in the early seventies
indicated possibility.
Neighbouring areas gave supporting
indications.
 FIGURE .1
GEOLOGY
Three Metamorphic Belts:
South Equatoria.
Central Sudan and Nile Valley.
The Red Sea.
Structural Setting similar to Central African
Rift Systems.
Muglad, Melut and The Blue Nile are the three
major sedimentary basins.
Muglad Basin marked by three major rift
cycles and sagging.
 FIGURE 2
SUDAN OIL & GAS
CONCESSION MAP
 Exploration In The
Red Sea Area

Earlier efforts concentrated in the Red Sea

area.
Various companies explored the area, without
success, from the late fifties to mid seventies.
Chevron took the concession 1974, made two
discoveries in Delta Toker (Block 15).
discoveries tested gas and condensate.
 Exploration In The
Interior Basins
Chevron took the first concession in 1975 on an
area of over half a million square kilometers.
In 1980 Total took Blocks B and C.
In 1982 Sun Oil took Blocks 9 and 11 (central &
Blue Nile).
Various companies sought concessions.
After Chevron left in 1992, the area was sub-
divided into the Blocks.
Various other companies took concessions.
 Before stoppage of work

Chevron made its first discovery in 1978.

Drilled about 97 Wells.
Spent about 1000 million dollars.
Left about 365 MMSTB recoverable reserves.
Left piles of data over may blocks.
1984 after the incident of Rabcona, claimed
force majeure and stopped work.
 Calls to Resume work

Calls by the Intrim Government in 1985 did

not succeed.
Another call by the Government of Sadiq El
Mahdi also failed to bring Chevron back.
Chevron avoided to come for a meeting
called for by the Government of El Bashir in
1990.
Finally circummed to the banner of
termination and met in Khartoum in June
1991.
The Alternatives

Resume work yourselves.

Find a third party willing work.
Termination within one year.
 The amicable settlement
Chevron cannot resume work.
Third party unavailable.
Government to find third party.
Chevron may sell to third party.
Concorp to purchase and handover to
Government.
Concorp and Chevron singed in October
1992.
Concorp reached agreement and handed
over to Government in October 1993.
Good Advice

Do not go for majors.

Find minors.
Better find a family concern.
From Chevron to State Petroleum
Corporation(SPC)
Various queries were raised after Chevron
left:
Area is not secure!
Reserves are not adequate!
Uneconomical!
1993 (AUG) SPC took blocks 1,2&4.
Government objectives achieved:
Worked for three years without incident.
Developed Heglig field to produce 24000 BOPD.
increased reserves with Limited exploration
programme.
 From SPC to the Consortium

SPC not able enough. Other partners needed.

August 1996, SPC and Government signed memo
to jointly introduce other parties.
November 1996, CNPC, Petronas, SPC and
Sudapet joined hands.
One Agreement for Exploration and production,
another for the transportation facilities, pipeline
and marine terminal.
Export by end of June 1999.
Crash project schedule achieved export August
31st. , 1999.
 The Potential Of Occupied
Blocks
Please refer to the Figures and Tables
attached to the Paper:
Figure 2 and Table 1 for the distribution of
the Blocks.
Table 2 for the Work Programme.
Table 3 for Reserves.
Table 4 for Production.
 Table 1
Blocks Under concession Agreements
SR.
BLOCK STATUS COMPANY DATE REMARKS
NO.
1 1, 2 & 4 OCCUPIED CNPC, Petronas, Talisman and Sudapet. NOV. 1996
2 3&7 OCCUPIED Gulf, CNPC, AL Thani and Sudapet. NOV. 2000
3 5A OCCUPIED Lundin Oil, Petronas, OMV and Sudapet. FEB. 1997
4 5B OCCUPIED Petronas, Lundin Oil, OMV and Sudapet. JAN. 2001
5 6 OCCUPIED CNPC. SEP. 1995
6 HALAIEB OCCUPIED IPC ( LUNDIN OIL ) 1995
7 B OCCUPIED Total. 1980
8 8 FREE UNDER NEGOTIATIONS
9 9 FREE
10 10 & 11 FREE
11 12 & 14 FREE
12 13 & 15 FREE
14 C FREE
 Table 2
Work Programme

REMARKS
PAST WORK CURRENT WORK FORECAST( 3 YRS)
BLOCK

2D 3D EXP. DEV. 2D 3D EXP. DEV. 2D 3D EXP. DEV.

km sq km WELL WELL km sq km WELL WELL km sq km WELL WELL
1 5430 126 10 21 1283 1295 45 95 0 0 5 1
2 5554 128 14 14 3532 360 23 55 0 0 4 1
4 8062 0 4 1 8168 0 17 6 1300 0 13 0
3&7 3000 0 3 2 5000 550 24 0 6000 900 10 14 2003only
5A 3000 0 1 0 900 300 3 0 1485 180 3 5
5B 2940 0 0 0 2940 0 0 0 1000 0 3 0
6 10317 0 30 0 500 0 10 0 849 815 14 27
8 1996 0 1 0 0 0 0 0 0 0 0 0 PROMOTION
9 2600 0 3 0 0 0 0 0 1700 0 6 0
10 0 0 0 0 0 0 0 0 0 0 0 0 3 TEST LINES
11 3000 0 3 0 0 0 0 0 0 0 0 0
12 0 0 0 0 0 0 0 0 0 0 0 0 PROMOTION
13 3400 0 3 0 0 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0 0 0 0 0 0 MAG.+ GRAVITY

15 7806 0 9 0 0 0 0 0 0 0 0 0
B 1679 0 0 0 0 0 0 0 0 0 0 0 SUSPENDED
C 1277 0 2 0 0 0 0 0 0 0 0 0
HALAIEB 2000 0 1 0 0 0 0 0 0 0 0 0
 Table 3
Reserves

CURRENT (DEC 2001) FORECAST ( 3 YEARS )

BLOCK

ORIGINAL OIL RECOVERABLE ORIGINAL OIL RECOVERABLE

IN PLACE RESERVES IN PLACE RESERVES
MMSTB MMSTB MMSTB MMSTB

1A 1,042.0 318.7 1,226.0 367.5

1B 821.6 184.5 0.0 0.0
2A 543.3 67.9 792.9 110.9
2B 677.4 115.6 738.3 129.0
4 37.7 7.5 61.4 14.6
5A 1,005.0 116.3
6 950.0 366.0
3&7 550.0 200.0
 Table 4
Production
BLOCK

CUMULATIVE FORECAST
TO 31 DEC 2001 2002 2003 2004
MMSTB MMSTB
1, 2 &
161.746 79.205 80.300 80.300
4
3&7 0.395 0.000 0.000 0.000
5A 0.000 0.000 3.220 12.775
6 0.000 0.000 2.760 18.250
 Blocks 1.2&4

Block 4 exploration period ends

by Nov. 2003.
Exploration period for Block
1A&2A ends by Nov. 2002.
More seismic planned for block 4.
Forty five exploratory , appraisal
and development wells
programmed.
Production forecasts for 2002/3/4
about 79/80/80 MMSTB
respectively.
Programme three years ahead of
schedule.
 Blocks 3&7
Six structures drilled; four
successful.
6000 km 2D Seismic and 900 sq
km 3D seismic planned.
34 exploratory , appraisal and
development wells planned. Plan
upgraded to 48. 11 executed.
Success rate about 71%.
Previous production from Adar
Yale discontinued.
Production forecast by 2nd QRT
2004.
Only 6% of Blocks explored.
 Block 5A

One structure drilled,

successful.
1485 km of 2D seismic and
180 sq km 3D
3 exploratory and 5
development wells forecast.
35000 BOPD production
forecast for 4th. Qrt. 2003.
Area still unexplored.
 Blocks 5B

2940 km 2D seismic
previously acquired.
Re-processing previous
data
Mobilize.
1000 km 2D seismic and
3 exploratory wells
planned.
 Blocks 6

10 structures drilled all

successful.
849 km 2D and 815 sq km 3D
seismic.
14 exploratory and 27 appraisal
and development wells
programmed.
Production forecast by 4th. Qrt.
2003 At 30,000 BOPD increasing
to 70,000 BOPD by 2005.
Pipeline under consideration.