S. Sudan: Oil discovered in Upper Nile State

OIL discovered in northeastern Upper Nile State, South Sudan.  Jonglei and Warrap identified as rich in oil reserves.

300 million barrels of oil have been discovered by a consortium commissioned by the government to do prospecting in the southeastern region of the country.  This sets in motion opportunities for more oil exploration licences from the government, as more areas are confirmed as oil rich.

Article from allAfrica.com

By ESTHER ROSE

Dated 22 August 2019

South Sudan: More Black Gold Struck - 300 Million Barrels, and Counting

Cape Town — 300 million barrels of recoverable oil has been discovered in South Sudan's northeastern Upper Nile state, by a consortium comprising the Dar Petroleum Operating Company (DOPC), which includes China National Petroleum Corporation, Petronas, Nilepet, Sinopec and Tri-Ocean Energy, according to the African Energy Chamber.

"This is a remarkable achievement for the country," said Nj Ayuk, Executive Chairman at the Chamber and CEO of the Centurion Law Group. "Since independence, South Sudan has worked tirelessly to bring back damaged fields to production, and especially encourage exploration".

South Sudan had earlier in 2019, signed an exploration and production sharing agreement with South Africa's Strategic Fuel Fund for the highly prospective Block B2. The move was part of South Sudan's strategy to diversify its basket of investors and encourage further exploration.

While the country sits on over 3.5 billion of proven oil reserves, the third largest in sub-Saharan Africa, 70% of its territory remains under-explored. Among those areas are Jonglei and Warrap, which has also been identified as rich in oil reserves.

South Sudan and Sudan are also in talks on cooperation to re-pump oil from South Sudan at a faster pace.

To boost exploration, South Sudan will be launching a new and much-awaited petroleum licensing round at the upcoming Africa Oil & Power conference in Cape Town on October 9th, 2019.

View original article here: https://allafrica.com/stories/201908220235.html

Further Reading

Critics Warn South Sudan to Be Wary When Signing Oil Deals

President Salva Kiir has received offers from agents of established companies, organizations and non-descript financing groups worth billions of dollars, that critics warn will ... Read more »

S. Sudan: Govt Signs 'Suspicious' Oil Agreements to Turn Economy Around

S. Sudan: Why Govt Continues to Fall Out of Favour With International Part

Map of oil concession areas in Sudan and South Sudan (Credit: Eric Reeves)

To view larger version click here: http://sudanreeves.org/category/maps/page/2/

State-run co along with JV partners China, Malaysia upset as oil dues from Sudan rise to $500 million

SUDAN had denied ONGC and partners an extension of license to operate block 2B after the initial contract expired in November 2016. State-run company along with JV partners China, Malaysia are upset as oil dues from Sudan rise to $500 million. Full story below.

Article by Economic Times.india

By Sanjeev Choudhary, ET Bureau, 02 Aug 2019 09:32

ONGC, its partners likely to exit oil blocks in Sudan

NEW DELHI: ONGC and its Chinese and Malaysian partners have decided to exit their oil blocks in Sudan, frustrated by the years of reluctance by the Sudanese government to pay for the oil it lifts from these blocks.

ONGC has been engaged in an arbitration with Sudan for more than a year to recover its oil dues that have now climbed to $500 million. 

ONGC owns 25% stake in a joint venture that operates blocks 2A and 4 in Sudan whose output the local government had been lifting but not paying for since 2011. The balance stakes in the two blocks are split between China’s CNPC (40%), Malaysia’s Petronas (30%) and Sudan’s Sudapet (5%). 

“The company has reviewed the geopolitical situation in Sudan and has considered the option for exit from the operations in Block 2A, 4 in terms of article 14.1 of the JOA. The intention in this regard has been conveyed to the government of Sudan on 10 May 2019,” ONGC Videsh, the overseas arm of the state-run explorer, said in its financial statement. “Consequently, the company has provided Rs 5,979.71 million against the associated oil and gas and other assets in its consolidated financial statement.”

The amount being provided for is the carrying value of the oil assets in blocks 2A and 4 of Sudan, said a person familiar with the matter, adding that the project has already paid back the investment. 

ONGC Videsh declined comment for the story. 

The joint venture partners have requested Sudan to terminate the production license by August 31 and are awaiting a formal order from the government, the person quoted above said. 

Meanwhile, arbitration tribunal at the International Court of Justice has been formed to deal with the ONGC’s request for recovery of oil dues from Sudan. At the request of Sudan, the tribunal had suspended arbitration proceedings by three months until August 2, the person said. 

In 2003, ONGC Videsh had acquired 25% stake in the joint venture, Greater Nile Oil Project, which comprised blocks 1, 2 and 4, located about 800 km from Sudan’s capital Khartoum. After South Sudan was carved out of Sudan in 2011 following years of civil strife, all the blocks were split between the two countries. 

Sudan had denied ONGC and partners an extension of license to operate block 2B after the initial contract expired in November 2016.

Operations at blocks in South Sudan resumed this year after being shut for five years due to security issues. 

View original article here: https://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-its-partners-likely-to-exit-oil-blocks-in-sudan/articleshow/70490872.cms

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USAID 2001 Sudan Oil & Gas Concessions Map

To view a larger version of the following 2001 Sudan map from Wikipedia click here.  

Click, once or twice, on the image at Wikipedia to see full screen size.