Sudan is planning to offer 27 oil blocks to the investors through an international bid, according to acting energy minister Kheiri Abdelrahman
As reported in the Radio Dabanga news outlet, the country is set to attract investors with access to advanced technologies for the blocks on offer. Abdelrahman further indicated that the production plan for the new companies should be consistent with exploration data to reach peak production.
South Sudan’s secession has led to a decline in Sudan’s oil exports and fiscal revenues, according to the International Monetary Fund (IMF) latest report. With South Sudan’s secession, Sudan lost about 75% of oil production, 66% of exports and half of fiscal revenues, the IMF reported.
According to IMF, oil is expected to be increasingly less important for the Sudan’s economy by 2040. Aging oil fields are seen to keep oil production flat over the medium term. The price of Sudan’s crude oil is projected to average US$42 per barrel in the medium term, stated the IMF in October.
In the meantime, Sudan and South Sudan have signed a draft agreement. The goal is that Sudan will help South Sudan to restart production from Block 5A and provide technological assistance on blocks 03 and 07, all located on the border between the two states.
