Sinopec inks leading stake in Sudan oil site

China National Petroleum Corp (Sinopec)<386>, leading mainland energy and chemical company, has announced its latest deal with Sudan to acquire 40% in the Block 13 exploration site off the Red Sea coast, a senior Sudanese oil official reported.

The exploration site of 38,200 square kilometers will demand an initial exploration investment of US$25 million in the first three years. The deal was signed at the end of last month, upon the approval by Sudan's National Petroleum Commission. This leaves just two blocks which have yet to be assigned“ Block 12b in the war-torn Darfur region and Block 10 in the east.

As a result of large land area in Sudan's blocks, most contracts include a clause that relinquishes a percentage of the block area of the controlling group within a specific time frame.

The development of Sudan's oil industry has blossomed despite US sanctions with investments by Asian firms, though still lacking transparency as a result of its participation in the north-south civil war.

Sudan produces about 500,000 barrels a day of crude oil. The remaining stake is 15% held for both the Indonesian state oil company Pertamina and its Sudanese counterpart Sudapet; 10% each will taken by Nigeria - the Express and AfricaEnergy companies and Dindir Petroleum International of Sudan.