July 5, 2012

Oil exploration deals signed

Sudan has signed agreements with foreign oil companies that will allow them to search and produce oil on Sudanese territory. Though agreements cover areas in much of the country, except Darfur, several blocks are in east Sudan.

Reuters reports [in Egypt.com]  that, "Seven blocks were awarded for the first time, while some companies joined previously awarded contracts for two other blocks, [Egyptian State Oil Minister Ishaq Adam] Gamaa said. Some of the blocks are near the northern border with Egypt, some are offshore and others are near Kassala in eastern Sudan and in Khartoum state.

""The initial investment needed for these blocks is $1 billion. It will not be cash given to Sudan, but money that will be invested by those companies," Gamaa told Reuters.

"Gamaa said there would be no production at the new blocks for several years while companies carry out magnetic surveys, seismic data and drilling of exploratory wells.

Another article at AllAfrica

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