(Ecofin Agency) - Sudan’s Ministry of Oil and Gas has announced that Sudapet will become the sole owner of Block B2 located in the southern part of the country, from November 29th, in line with the new Production Sharing Agreement (PSA).

According to the Minister of Oil and Gas, Mohamed Awad (photo), the oil industry in Sudan would enter into a new era after November 29th, as the state oil company, Sudapet will be the full owner of Block B2. Located 45 km west of the contested Abyei area, the field is most productive field in South Kordofan state near the border with South Sudan.

The Sudanese minister said he met with China Oil Company and India Oil Company officials regarding talks on the renewal of concession agreement. He pointed out that the last 20 years have seen Sudan becoming a regional pioneer in oil industry, adding that the PSA renewal would increase Sudan’s shares and protect partners’ interests as there is a need to boost oil production and reduce its cost to cope with the falling oil prices in the global market.

Block B2 is a joint venture between the government of Sudan and the Greater Nile Company which includes Chinese CNPC, India’s ONGC Videsh, Pertonas and Sudapet.

Anita Fatunji