The contract was concluded in Khartoum yesterday with the signing of the Exploration and Production Sharing Agreement (EPSA) between PETRONAS and the three companies as partners for Block 5B and Sudan’s Oil Exploration and Production Authority (OEPA). PETRONAS through its wholly-owned subsidiary PETRONAS Carigali Overseas Sdn Bhd (PCOSB) will hold a 41 percent participating interest in the block while IPC, OMV and Sudapet will each own 24.5 percent, 24.5 percent and 10 percent stakes respectively. PCOSB will be the operator of the block. Under the EPSA, the contractor will reprocess all existing seismic data, acquire and process 1,000 line-km of new 2-D seismic data, as well as drill three wildcat wells. The contractor’s minimum financial commitment for the contract is US$33 million.
Block 5B is adjacent to Blocks 1, 2 and 4 and Block 5A. It covers an area of about 22,232 square kilometres and is located approximately 800 km southwest of Khartoum. It is a remote area with no wells drilled previously.
The EPSA for Block 5B reflects PETRONAS’ commitment to continue building its presence in Sudan as part of its efforts to seek new oil and gas resources to augment Malaysia’s reserves, in line with its globalisation drive. PETRONAS made its entry into Sudan through the integrated development of Blocks 1, 2 and 4 project which included the construction of about 1,500km pipeline from the fields to Port Sudan. The project is being undertaken by a consortium known as Greater Nile Petroleum Operating Company Ltd with PETRONAS holding a 30 percent interest. The other consortium members are China National Petroleum Corporation (40 percent), State Petroleum Corporation (25 percent) and Sudapet (5 percent). First oil from the project was exported in August 1999, elevating Sudan to the rank of oil exporting nations and earning valuable revenue for the country’s development programmes. The consortium has successfully enhanced the project’s recoverable crude oil reserves from 600 million barrels to 840 million barrels and the project is currently producing an average of 200,000 barrels per day.
In Block 5A, PETRONAS and its partners in the block have made an encouraging discovery with potential crude oil reserves of about 230 million barrels. PETRONAS has a 28.5 percent interest in the block and its partners are IPC (40.375 percent), OMV (26.125 percent) and Sudapet (5 percent). Further assessment is being conducted on the block by the partners before embarking on the development stage.
At the signing ceremony held in Khartoum yesterday, PETRONAS was represented by its President and Chief Executive Tan Sri Dato’ Mohd Hassan Marican, Sudapet by its General Manager Mr Mohamed El-Mubarak Imam, IPC Sudan by its President/Chairman Mr Adolf Lundin and OMV by its Executive Vice President Mr Gerhard Roiss. OEPA was represented by Sudan’s Minister of Energy and Mining, Dr Awad Ahmed El-Jaz.
Issued by
Legal and Corporate Affairs Division
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