The Sudanese Ministry of Petroleum and Minerals told the press that Sudan is aiming to become an oil exporting state by 2023 and expects to produce 100-110,000 barrels a day by 2021. Minister Azhari Abdalla said he expects upcoming offers next year to improve the oil and gas industry in Sudan and invited international oil companies to participate in franchises the Sudanese government is preparing to offer as investments for the first phase.
Abdalla added that new oil and gas fields had been discovered: “I expect many companies to come forward, especially now that we are in the second phase of negotiations with Washington after the lifting of sanctions.”
After South Sudan became independent, Sudan lost about 75% of its oil production. Relations between the two countries regarding cooperation in the oil business have been unstable for years and this has led to the abandonment of many oil fields close to the borders as well as oil fields in South Sudan due to the unsafe environment and lack of agreement. However, some months ago the two states signed an agreement to activate the oil fields in the south, increase production and create new transportation, together with other plans.
Since the agreement, the Toma South oil field in South Sudan, which is near the Sudan border and some 20 km south of the Heglig oil field in Sudan, was activated about two months ago after maintenance work and is now producing about 20,000 barrels per day (bpd). A Sudanese source from the fields says that the greater part of the work will take place in Unity state in South Sudan. A group of engineers and workers, accompanied by official delegations from both countries, have visited the sites and are now constructing the oil fields and building transportation roads between the Heglig and Unity oil fields.
In addition to the discovery of new oil fields and the coming changes, a new oil refinery is to be built in Sudan. The Sudanese Petroleum and Minerals Minister announced that he will be visiting Moscow on 10th December, heading up the Sudanese delegation of the Sudanese-Russian committee, in order to follow up cooperation between the two countries. In addition to discussing the establishment of an oil refinery in the Red Sea state of Sudan, on-going talks will be held with a Russian petroleum company regarding the building of the refinery.