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Sudan Seeks to Boost Oil Investments with US

Sudan Seeks to Boost Oil Investments with US

Monday, 21 January, 2019 - 13:15
A general view shows one of the main oil refineries in Al-Geili, some 100 kms north of the Sudanese capital Khartoum. (AFP file photo)
Khartoum - Seifyazal Babekir
New US-Sudanese talks have started in Khartoum to expand oil investment projects with the largest number of American companies.

A delegation from the US embassy in Khartoum, headed by its commercial attaché and including representatives of the Baker Hughes company, met with CEO of Sudan National Petroleum Company (SUDAPET) Atif Mustafa Abbashar.

SUDAPET is one of the arms of the Sudanese Ministry of Oil and Gas, which is responsible for agreements and transactions with international companies that seek to invest in the oil sector in Sudan.

The two parties agreed to resume the activities of Baker Hughes in the country and assign the company and the commercial attaché to market and promote investment opportunities in the exploration, extraction and oil sectors in Sudan.

Sudan relies on Baker Hughes to attract high-tech US investments, an informed source in the Ministry of Oil, Gas and Minerals told Asharq Al-Awsat.

Baker Hughes will implement the industrial gas city project, which is on Sudan’s international tender to invest 15 oil fields in the country, said the source.

The project is based on US shale oil technology for natural gas extraction.

The company’s contract provides for cooperation with SUDAPET and implementation of gas and associated gas projects, as well as cooperation in spare parts for drilling wells, drilling fluids and refinery services.

Since the beginning of the year, the Ministry of Oil has been receiving offers from international oil companies to invest in 15 oil fields, which Sudan has put out to investment through a global tender in March 2017 and then reintroduced them in October 2018.

It also offered a number of fields for global investments at the end of May, most notably the Industrial Gas City, which the country is looking forward to capitalize on gas-related industries through bloc 8 located in the southeastern Sinnar state.

Other opportunities for oil investment in Sudan include increasing the storage capacity of the Khartoum refinery, which currently operates at 90,000 barrels per day, and covering 80 percent of the country’s oil consumption.

The Sudanese investment projects also include the extension of pipelines from the production and storage areas to the rest of the country and the extraction of oil and gas in a number of sites that need high technology and huge investments.

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