Sudan Signs Oil Exploration Deal with European Firms

Sudan has signed a new onshore exploration deal for the 50,000km² block E with two European firms.

Star Petroleum, based in Luxembourg, holds a 75% share in the block along with Norwegian Hamla, which holds 5%.

Sudan’s two national oil firms, Sudapet and Nilepet, will take the remaining 20%.

European firms withdrew from Sudan during the 1983-2005 north-south civil war, because most of Sudan’s oil reserves lie along the disputed north-south border.

Block E traverses four southern states – Northern Bahr el-Ghazal, Western Bahr al-Ghazal, Lakes, Warrap – and South Darfur in north Sudan.

Sudan Energy Ministry Head of Exploration Azhari Abdel Gadir told Reuters the company hoped drilling could begin after three years of initial exploration with an investment of $20m.

“The contract will last for 20 years with a potential renewal period of five extra years with a six-year exploration period at the beginning,” Gadir said.

“It’s too difficult to talk about potential production or reserves but it is near to block 5a … so it is expected that a light or medium oil will be found.”