The government of Sudan, according to Kheiri Abdelrahman, the country’s acting Energy Minister, plans to launch an international tender for 27 oil exploration blocks in the country, three of which are offshore while the rest are on land.
The investors who will obtain the concessions should use modern technologies to increase oil production from exploration data in order to quickly reach peak production. Detailed emphasis will be placed on the production plans of the selected companies so that they are consistent with the new oil policies.
This project is in line with the North African country’s efforts to revive its declining oil production since the secession of South Sudan back in 2011.
Impact of Southern Sudan secession on the economy of Sudan
The secession of South Sudan led to a sharp decline in Sudan’s oil exports and fiscal revenues, according to the International Monetary Fund (IMF). Following South Sudan’s secession, Sudan lost about 75 percent of oil production, 66 percent of exports, and half of the fiscal revenues.
Sudan and its economy have never fully recovered from the loss of oil production since the secession. However, the two countries have recently signed a draft agreement under which Sudan will help South Sudan to restart production from Block 5A and will provide technical assistance on blocks 03 and 07, all of which are located on the border between the two states.
Activation of a new marginal oil field
Meanwhile, the North African country has activated a new oilfield (al-Rawat oilfield) in the White Nile state. With seven wells, this oilfield will add approximately 3,000 barrels a day of oil production boosting the country’s output to 64,000 bpd. This is according to Aiman Aboujoukh, the general manager of the Sudan National Petroleum Corporation, also known as Sudapet.
He also said that the country hopes to add an extra 20,000 bpd next year if the finance ministry approved funds for exploration and revealed that the United States confirmed it would lift Sudan from its list of state sponsors of terrorism, a designation that had blocked international funding and debt relief.