Africa: Sudan

AFRICA

Cyril Widdershoven, Consultant, Sittard, Netherlands (Libya, Tunisia, Uganda, Algeria, Sudan, Chad, Egypt, Morocco, Mauritania and Senegal sections); Geoff H.H. King, Managing Editor, energyeuroafrica.com (Libya, Tunisia and Uganda sections); Mark Pabst, Senior Editor, Oil and Gas North Africa magazine, Cairo (Algeria, Sudan and Chad sections); David Fuller, Senior Researcher, Oil and Gas North Africa magazine, Cairo (Egypt, Morocco, Mauritania and Senegal sections); and World Oil Staff

Sudan

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Despite civil war and international condemnation, the Sudanese government continues to aggressively pursue oil exploration and production. However, proposed U.S. legislation banning companies operating in the country from trading their stocks in U.S. capital markets would be a major blow to Sudan’s upstream operations.

Exploration. Sudan announced plans to begin oil exploration in the Blue Nile basin and the Red Sea area. Previously, exploration was limited to the central and south-central regions. Energy ministry officials said that estimated total reserves are 3 billion bbl, with 700 million bbl of proven reserves.

Petronas was awarded a 40% share in Block 5B – exploration began near the end of 2000. Petronas agreed to increase Sudanese oil production by 50,000 bpd by mid-2002.

Agreements were also signed between the Sudanese government and a consortium of CNPC (operator, 23%), Qatar’s Gulf Petroleum Corp. (46%), UAE’s al-Thani Petroleum (23%) and Sudapet (8%) for exploration, production and transportation of oil in Blocks 2 and 7 in the Melut basin. At present, the area produces 2,000 bopd, but total production is expected to increase to 60,000 bopd by 2003.

Table: Significant African discoveries, July 2000 to July 2001

Lundin Oil, now part of Talisman, together with Petronas, OMV (Sudan), and Sudapet, announced a significant oil find on Block 5A in March, with the Thar Jath 1 testing 4,260 bpd. In May, they also struck oil in the Thar Jath 2 appraisal (more than 2,000 bpd). Work on this block will resume in fourth-quarter 2001.

By mid-2002, Talisman-led GNPOC will have spent $360 million and drilled 42 additional wells, to bring output to 260,000 bopd in Sudan’s Muglad basin. (Photo courtesy of Talisman Energy)

Development / production. According to Sudanese officials, oil production reached 220,000 bpd by May 2001. The Greater Nile Petroleum Operating Company (GNPOC) – made up of Talisman, CNPC, Petronas, and Sudapet – is already pumping from 100 wells, and the group expects 30 more to go on-line in the next 12 months.

By the end of 2001, GNPC expects to produce 230,000 bopd; by sometime in 2002, maybe 260,000 bopd. The company plans to spend around $360 million to drill 17 exploration wells and 25 development wells. GNPOC currently produces from six fields in the southeastern part of the Muglad Block.