Petronas Allocated 40 Pct Stake in Block 5B Sudan Oil Project
KUALA LUMPUR, July 13 (AFX-ASIA) - Sudan has allocated Petroliam Nasional Bhd a stake of some 40 pct in Block 5B of an oil exploration project in Southern Sudan, The Sun newspaper reported, quoting Hassan Mohd Ali, secretary-general to the Sudanese Ministry of Mining and Energy.
Petronas is expected to become the main operator of the new exploration and production site in Block 5B and further negotiations are underway between the two parties, Hassan said.
The project is expected to commence at the latest by January 2001, he said.
"The Sudanese government will hold a bigger share in this project, at least 15 pct compared to its 5 pct equity in previous ventures, and the rest will be allocated to European companies," Hassan said.
"Petronas will be the operator of this project and we hope to finish negotiations by January and mobilise the project in the next six months," he added.
According to The Sun, the amount of investment from Petronas in Block 5B operations has yet to be decided but is expected to run into billions of ringgit.
Petronas has joint investments in other oil exploration and production operations in Sudan, and holds a 30 pct stake in Greater Nile Petroleum Operating Company (GNPOC) which is exploring and developing Blocks 1, 2 and 4 in south Sudan.
In the GNPOC ventures, Petronas' three partners are China National Petroleum Corporation, which holds a 40 pct stake, Talisman with 25 pct and Sudan's national oil company Sudapet with 5 pct.
Petronas has invested about 800 mln usd in petroleum exploration and production in Sudan, said to its largest single overseas investment so far, the report said.
Meanwhile, The Sun quoted Petronas country manager Omar Suhaimi Abu Hassan saying that high oil prices will help Petronas recover its investment in Sudan earlier than expected.
Instead of the normal six to seven years to recoup its investment, the recovery period could be shortened by at least two to three years if high oil prices prevail, he said.
Blocks 1, 2 and 4 under the GNPOC exploration project are believed to contain combined reserves of some 2.8 bln barrels.
Omar said the GNPOC project has recovered 620 mln barrels of oil, and is in the midst of exploring and discovering another 330 mln barrels.
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