23 Sep 2014

Oil

The following companies are involved in the oil industry in South Sudan.

White Nile | Total | Shell/BP | Petronas | Talisman Energy Inc | Lundin Petroleum | China National Petroleum Corporation (CNPC) | Sudan National Petroleum Corporation (Sudapet) | Greater Nile Petroleum Operating Company Ltd (GNPOC) | PetroSa | Petrodar Operating Company Ltd (PDOC) | Advanced Petroleum Company (APCO) | Higleig Petroleum Services and Investment Group (HPSIG) | ONGC Videsh Limited (OVL) | Greater Nile Oil Project (GNOP)

White Nile

 

Total

Total, through its subsidiary Total E&P Sudan, signed an Exploration and Production Sharing Agreement (EPSA) with the Government of Sudan on blocks in southeastern Sudan in 1980 including block B, the main area for Total’s exploration activity in Sudan alongside partners:

  • Marathon Petroleum Sudan Ltd (32.5%, United States)
  • Kufpec Sudan Ltd (25%, Kuwait)
  • State-owned Sudapet (10%)

However, security issues in the region caused the suspension of exploration operations - Total were about to drill 3 oil wells - in 1985 with the agreement of the Sudanese government under a Stoppage Period provision. From 1985 to 2004 the Government of Sudan extended the Stoppage Period annually in which Total retained all of its rights on block B and kept a minimal presence on site.

In late December 2004, Total and its partners signed the Revised Exploration and Production Sharing Agreement with the Sudanese authorities to update the 1980 contract and to take account of new international industry standards, particularly in relation to corporate social responsibility, and to establish the terms and conditions for a resumption of operations in Sudan.

On 1 February 2005 Total E&P Sudan's representative was appointed in Khartoum and later in July received from International Crisis Group (ICG) an opinion on the Peace Agreements and on the White Nile issue.
However in May 2006, in accordance with Total's request, the High Court of London passed a judgement ordering White Nile to disclose documentation evidencing its alleged rights on part of block B.

Shell/BP

 

Petronas

Petroliam Nasional Berhad (PETRONAS) is Malaysia's national petroleum corporation incorporated in 1974 and wholly owned by the Government. The corporation is vested with the entire oil and gas resources in Malaysia and entrusted with the responsibility of developing and adding value to these resources.

Petronas has major interests in Sudan’s oil fields that include:

  • Block 1, 2, & 4 (Exploration, Development and Production)
  • Block 3 & 7 (Exploration and Development)
  • Block 5A (Exploration and Development) and 5B (Exploration)
  • Block 8 (Exploration)
  • Block 15 (Exploration)

Crude oil production in Block 5A begun in June 2006 in Thar Jath field (54km2) which is located in Muglad Basin. White Nile Operating Company Ltd currently operates the production in partnership with Petronas, ONGC Videsh Ltd of India and Sudapet of Sudan with expected initial production rate of 20,000 barrels per day (BPD).

Talisman Energy Inc

An independent upstream oil and gas company with headquarters in Calgary, Canada.

Lundin Petroleum

Talisman Energy - a Canadian independent - that included exploration assets in Sudan, formed Lundin Petroleum AB in 2001 as a result of a takeover. Lundin Petroleum holds a 24.5% interest in Block 5B that covers the southern part of the Muglad basin and is on course to strike and begin crude oil production as is being done in block 5A. Block 5B is a large block of 20,119 square kilometers and is located in the Sudd swamp. The effective date of the Block 5B Exploration Production Sharing Agreement is May 2, 2001 with a contract for up to 25 years with a 6 years exploration phase. Petronas and Sudapet jointly operate this contract.

In April 2003 Lundin Petroleum sold its 40.375% interest and operatorship in Block 5A to partner Petronas Carigali Overseas for the sum of US$ 142.5 million.

During 2007, activities have been delayed due to the slow implementation of the Comprehensive Peace Agreement which required the setting up of institutions to deal with the oil issue. This took place in 2007 when the National Petroleum Commission gave its endorsement of WNPOC and its right to conduct operations in Block 5B. Exploration drilling is expected to begin in Q1 2008.

On the ground operations began in earnest in 2006, with some 440 km of seismic data being acquired, and continued into the first half of 2007 as a further 600 km of data were recorded. Parallel studies using this and older seismic led to the identification of a series of relatively shallow structural closures analogous to those successfully drilled in neighbouring Block 5A.

China National Petroleum Corporation (CNPC)

CNPC has been present in Sudan since 1996 and now has oil and gas assets and interests in the country, while also providing oilfield services.

CNPC's oil and gas businesses in Sudan mainly include the projects of Block 1/2/4, Block 3/7, Block 6, Block 15, the Khartoum Refinery, Khartoum Chemical I Co. Ltd. and the petrochemical trade, covering oil and gas exploration, development, production, storage and transportation, refining and chemicals and sales of refined products.

On August 30, 2005, CNPC, Petronas, Nigerian Express, Sudapet and the Hi-tech Group sign a production-sharing contract with the Sudanese Government to explore and develop oil and gas in Sudan's Block 15.
Located in the northeastern part of Sudan, Block 15 covers an area of 24,377 square kilometers, most of which is located in the Red Sea. Two small-scale gas discoveries existed in the contract block. This contract was the Sudanese government's first offshore exploration and development contract, and also the first gas exploration and production sharing contract.

Sudan Block 1/2/4 is located in the Muglad basin, 700km southwest of Khartoum and covers an area of 49,000 square kilometers. Exploration of the area started in the 1980s, yielding 180 million tons of proven oil in place and 69.74 million tons of probable oil in place. CNPC won its bid for the block on December 2, 1996, and formed a joint operating group with the Sudan National Petroleum Corporation (Sudapet), Petroliam Nasional Berhad (Petronas), and Canadian STATE Petroleum Company. The block produced a total of 11.04 million tons of crude in 2001, with daily production standing at 32,900 tons as of the end of the year.

As a general contractor, CNPC has completed the construction of a range of major projects, including oilfield surface engineering of Block 1/24, Block 3/7 and Block 6, the 1,506-km long pipeline between Heglig and Sudan Port, the 716-km long pipeline between Block 6 and Khartoum Refinery, the viscosity- breaking unit for Block 6, the phase I construction and phase II upgrade of Khartoum Refinery and the polypropylene unit. The 1,506-km long pipeline from Heglig to Port Sudan, with an annual crude delivery capacity of 12.5 million tons, was completed within 11 months.

Sudan National Petroleum Corporation (Sudapet)

Established in February 1997

Greater Nile Petroleum Operating Company Ltd (GNPOC)

In June 18, 1997, Greater Nile Petroleum Operating Company Limited (GNPOC) was incorporated to operate as a petroleum company in Sudan. GNPOC is a joint operating company owned by:

  • CNPC of China (40%)
  • PETRONAS of Malaysia (30%)
  • ONGC of India (25%)
  • SUDAPET of Sudan (5%)

In 1998 to 1999 GNPOC installed oil production and processing facilities for 5 oil fields in the Muglad Basin of South Sudan. More than 15,000 KM pipeline was also constructed from the fields to Bashair terminal in the Red Sea. Production was estimated at 150,000 bpd and could grow to 300,000 bpd over the medium term. First shipment was transported in the pipeline in June 1999. Parts of crude oil are distributed to the El Obied refinery and the Khartoum Refinery for domestic consumption. The remaining oil is exported. Currently GNPOC produces more than 300,000 barrels of oil per day.

PetroSa

In January 2005, PetroSA and Sudapet signed a study agreement with OEPA for Block 14, northern Sudan. This agreement took effect on 1 February 2005 and consists of a first phase of six months with an optional second phase of a further nine months.

Block 14 is situated in the southern part of the Sahara desert in a very arid region where only sand with some rock outcrops occur. This block is a frontier exploration area with limited knowledge of the geology.

Petrodar Operating Company Ltd (PDOC)

Petrodar Operating Company Ltd. is an operating company with the objective to carry out exploration, development and production of oil and gas in Blocks 3 and 7 (Blocks 3E,7E and 3D) These blocks are situated in the south east of Sudan, between longitude 31 and 34 and latitude 8 and 10 with a total area of about 72,000 Km2.

PDOC is a consortium of international Exploration & Production oil companies:

China National Petroleum Corporation (CNPC), a Chinese national company, incorporated in the British Virgin Islands and has a registered branch in the Sudan. It owns 41% of the shares of Petrodar.

Petroliam Nasional Berhad (PETRONAS), a national Malaysian oil company, incorporated in Malaysia and holds 40%

Sudan Petroleum Company (SUDAPET), a company owned by the Government of Sudan and holds 8%

China Petroleum & Chemical Corporation (SINOPEC), a private company, incorporated in China and holds 6%

Tri-Ocean Exploration & Production, a private company, incorporated in Cayman Islands and owns 5%

Advanced Petroleum Company (APCO)

Advanced Petroleum Company (APCO) is an operating company for a Joint Venture of five national and international shareholding partners:

  • Hi-Tech Petroleum
  • Sudapet
  • Khartoum State
  • Higleig Petroleum

APCO was officially established on 21st October 2003 by the signing of the Exploration & Production Sharing Agreement (EPSA) between the Ministry of Energy and Mining of Sudan and the Company’s Shareholders.

APCO’s concession area - Block C - covers sixty five thousand square kilometers in Southern Darfur region. The block is elongated in shape and runs parallel to the Central African Rift belt which proven to have a high hydrocarbon potential in Sudan, Central African Republic and Chad. Block C is bordered by concession areas of other sister operating companies that are actually producing oil from several lucrative fields.

Higleig Petroleum Services and Investment Group (HPSIG)

Hilieg petroleum & investment group - established in 1997 - is the largest, multi-disciplined engineering, construction company in Sudan. From modest beginnings, Higlieg Petroleum has today grown into the largest oil services EPC contracting company in Sudan.

ONGC Videsh Limited (OVL)

ONGC Videsh Limited (OVL) is a wholly owned subsidiary of the Oil and Natural Gas Corporation Limited (ONGC). ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P) Company in Asia, as per Platts 250 Global Energy Companies List for the year 2007. ONGC is the only Company from India in the Fortune Magazine’s list of the World’s Most Admired Companies 2007.

OVL was incorporated as Hydrocarbons India Private Limited on March 5, 1965 for the business of international exploration and production. Its name was changed to ONGC Videsh Limited on June 15, 1989. The primary business of the company is to prospect for oil and gas acreages abroad. This includes acquisition of oil and gas fields in foreign countries as well as exploration, production, transportation and sale of oil and gas.

Greater Nile Oil Project (GNOP)

The Greater Nile Oil Project (GNOP) in Sudan is located in the Muglad Basin, around 435 miles southwest of the capital Khartoum. The nearest oil export point from the field is the Port Sudan on Red Sea, which is around 930 miles from the oil fields. OVL acquired Talisman's 25% participating interest in the GNOP on 12 March 2003.

The project is divided into two segments: Upstream and Downstream. The Upstream segment is covered under a Exploration and Production Sharing Agreement (EPSA), while the Downstream part is covered under a transportation agreement named Crude Oil Pipeline Agreement (COPA).

The consortium members are:

  • China National Petroleum Corporation, CNPC (40%)
  • Petronas Carigali Overseas Sdn BHD, PETRONAS (30%)
  • ONGC Videsh Limited, OVL (25%)
  • Sudan National Oil Company, SUDAPET (5%)

ONGC Videsh Limited (OVL), the wholly owned subsidiary of Oil and Natural Gas Corporation Ltd (ONGC) acquired 24.125% Participating Interests (PI) in Sudan exploration Block 5A from Austrian Company OMV AG on 12th May 2004.

Block 5A
  • OVL, India 24.125%
  • Petronas, Malaysia 67.875%
  • Sudapet, Sudan 8%

White Nile Petroleum Operating (WNPOC), which is the Operator of the Block is the joint operating company of Petronas of Malaysia and Sudapet, the national oil company of Sudan. The Block 5A is spread over an area of 20,917 sq. km. and consists of discovered reserves and unexplored acreages. Considerable exploratory drilling has been carried out in the block by the consortium and two fields namely Thar Jath and Mala have been put on production and cluster of discoveries around Mala are in the stage of development. Besides the above, a few more discoveries have been made in the Block. The Thar and Mala Field started production in 2006. While production from Mala satellite will commence in 2008.

Block 5B
  • OVL acquired 23.5% PI from OMV AG of Austria.
  • OVL, India 23.5%
  • Petronas, Malaysia
  • Sudapet, Sudan

WNPOC is the Operator of Block 5B also. The Block 5B is spread over an area of 20119 sq. km and no field operations in the block carried out till 2005 due to security. The total resource of the block is estimated at 3.5 billion barrels. 

Last updated at 12/20/2013
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