On Monday, Sudan’s Minister of Energy and Oil, Muhyiddin Naeem Mohamed Saeed, announced that the country is renegotiating its oil cooperation agreements with China, a key ally in Sudan’s energy sector.
Speaking at a press conference in Port Sudan, Saeed outlined the objectives of the discussions, which include revitalizing and expanding Sudan’s oil industry by addressing outstanding debts and boosting oil production.
“We are seeing promising progress across various areas,” Saeed said, as reported by the state-run SUNA. He revealed that new agreements have been reached to rehabilitate the Khartoum refinery, inspect and repair critical oil pipelines, and resume exploration activities.
Built by China and operational since June 2000, the Khartoum refinery had a production capacity of 100,000 barrels per day. However, the facility and other oil installations suffered extensive damage during the 18-month-long conflict.
Saeed estimated that the losses sustained by Sudan’s oil sector have exceeded $18 billion since August, adding that the total value of the country’s oil infrastructure stands at $55 billion.
Despite a recent attack on the Khartoum refinery, Saeed downplayed its impact, stating that oil production has continued uninterrupted. “We are now producing a tanker every 29 days, compared to 45 days at the onset of the conflict,” he noted.
Sudan has liberalized its petroleum sector to combat fuel shortages, allowing private companies to import fuel. Saeed revealed that 32 companies are currently active in the sector, with the Ministry focusing on regulating the market and maintaining adequate fuel supply.
He expressed optimism that fuel shortages and long queues at petrol stations have been alleviated, emphasizing that the country had previously overspent on fuel imports.
Saeed disclosed that Sudan’s current oil production is operating at only 20% of its potential, while highlighting the presence of significant reserves of natural gas and gold in the Red Sea region.
Additionally, he revealed that countries such as Russia, Saudi Arabia, and Turkey have shown interest in investing in Sudan’s oil and gas industries.
However, the minister acknowledged ongoing challenges, including damage to vital infrastructure and security threats facing oil workers.