Eight wire-service stories from the past few days:
(The first five are about the refinery deal; the other three are about the subsequent offshore-exploration deal.)
From Reuters ("Sudan, Petronas sign $1 bln deal for new refinery"; Monday)...
Sudan and Malaysia's Petronas [PETR.UL] on Monday signed a contract worth about $1 billion to build a new 100,000 barrel-per-day refinery in the coastal city of Port Sudan, an official from Sudan's energy ministry said.
"The agreement was signed this morning ... It was for setting up a new refinery in Port Sudan," Mohammed Ahmed Siddig, the ministry's public relations manager, told Reuters.
"The deal was a contract ... The capacity will be 100,000 barrels per day ... It was for approximately $1 billion," he added.
From AFX ("Malaysia's Petronas strengthens presence in Sudan by taking stake in refinery"; Monday)...
National oil corporation Petroliam Nasional Bhd (Petronas) said it has strengthened its presence in Sudan by entering into the downstream refining business there.
In a statement, Petronas said its unit Petronas International Corp Ltd has agreed to take up a 50 pct interest in new Port Sudan Refinery Project, thus officially expanding its entry into the downstream business in the country following its acquisition of the entire retail assets of Mobil Oil Sudan Ltd in March 2003.
The remaining 50 pct in the port refinery is held by Sudan's Ministry of Energy and Mining.
Petronas said it and the ministry will jointly invest, develop and operate the export-oriented refinery.
It said the new refinery project located at Port Sudan, which is the only entry port in the country, is a high technology complex refinery with a total capacity of 100,000 barrels per day.
'It is an export refinery designed to process high acid crude that will add value to the Dar Blend from Sudan Melut Basin Blocks 3 and 7 where Petronas has a 40 pct equity interest,' it said.
It added that the production will meet the growing demand of petroleum products in Sudan and neighbouring countries under the Common Market of East and South Africa (COMESA) once it is fully operational by early 2009.
From Bernama ("Petronas Takes Up Stake In Refinery Project In Sudan"; Tuesday)...
Petronas through its wholly-owned subsidiary Petronas International Corporation Ltd, has taken up a 50 percent interest in the new Port Sudan Refinery Project.
The remaining 50 percent equity is held by the Ministry of Energy and Mining of Sudan.
Both Petronas and the ministry will jointly invest, develop and operate this export refinery.
Petronas yesterday concluded its participation in the project, thus officially expanding its entry into the downstream business in the country following its acquisition of the entire retail assets of Mobil Oil Sudan Ltd through its wholly owned subsidiary PETRONAS Marketing Sudan Ltd (PMSL) in March 2003.
The ceremony, held in Khartoum in conjunction with the sixth anniversary celebrations of Sudan's Petroleum Day, was officiated by Sudan's Minister of Energy and Mining, Dr Awad Ahmed El-Jaz and Minister of Finance and National Economy Mohammed, Hassan El-Zubair, Petronas said in a statement Tuesday.
The new refinery project, located at Port Sudan, which is the only entry port in the country, is a high technology complex refinery with a total capacity of 100,000 barrels per day, said Petronas.
It is an export refinery designed to process high acid crude that will add value to the Dar Blend from Sudan Melut Basin Blocks 3&7 where Petronas has a 40 percent equity interest, it added.
The production will meet the growing demand of petroleum products in Sudan and neighbouring countries under the Common Market of East and South Africa (COMESA) once it is fully operational by early 2009, it said.
This state of the art refinery will produce high quality petroleum products meeting Euro 4 specifications, it said.
Petronas said its entry into Sudan's refining business is testimony to its long-term commitment to the development of the petroleum industry in Sudan.
Petronas is already active in the downstream retailing and aviation through PMSL and upstream sectors of the Sudan's oil industry.
PETRONAS already has interests in Blocks 1, 2 and 4; Blocks 3 and 7; Block 5A, Block 5B and Block 8.
From the AP ("Malaysia's Petronas to jointly build oil refinery in Sudan"; Tuesday)...
Malaysia's state-owned oil-and-gas company Petronas said Tuesday it has signed an agreement with Sudan to jointly develop an oil refinery in the African nation.
The project involves building a complex refinery designed to process high-acid crude oil, with a total refining capacity of 100,000 barrels a day, the company, whose full name is Petroliam Nasional Bhd., said in a statement.
Petronas International Corp., a wholly owned unit of Petronas, has a 50 percent stake in the refinery project, while the remaining share is held by Sudan's Ministry of Energy and Mining.
According to a report by the Sudan News Agency, the refinery will be built at a cost of around US$1 billion (818 million), to be equally shared by the Sudanese government and Petronas.
Both Petronas and the ministry will jointly invest, develop and operate the refinery in Port Sudan, about 650 kilometers (400 miles northeast of Khartoum. The plant will be able to produce refined products that meet Euro IV specifications once it turns fully operational by early 2009, Petronas said.
Petronas has been active in Sudan's downstream oil retailing and upstream oil sectors. In March 2003, it acquired Mobil Oil Sudan Ltd.'s oil distribution network via its unit Petronas Marketing Sudan Ltd.
From Dow Jones ("Sudan, Petronas To Jointly Build 100,000 B/D Oil Refinery"; Tuesday)...
Malaysia's state-owned oil and natural gas company Petroliam Nasional Bhd. (PET.YY), or Petronas, said Tuesday that it has signed an agreement with Sudan to jointly develop an oil refinery at Port Sudan.
The Port Sudan Refinery project involves building a complex refinery with a total refining capacity of 100,000 barrels a day.
It is designed to process high-acid crude oil, Petronas said in a statement.
Petronas International Corp., a wholly owned unit of Petronas, has a 50% stake in the refinery project, while the remaining share is held by Sudan's Ministry of Energy and Mining.
Both Petronas and the ministry will jointly invest, develop and operate the refinery, which can produce refined products that meet Euro IV specifications once it turns fully operational by early 2009, Petronas said.
The statement didn't give details on the investment required.
According to a report by the Sudan News Agency, the refinery will be built at a cost of around US$1 billion, to be equally shared by the Sudanese government and Petronas.
Sudan's Minister of Energy and Mining Awad Ahmed El-Jaz was also quoted by the report as saying there is an agreement between the government and Petronas to expand the refinery to 150,000 b/d eventually.
Petronas has been active in the downstream oil retailing and upstream oil sectors in Sudan.
In March 2003, it acquired Mobil Oil Sudan Ltd.'s oil distribution network via its unit Petronas Marketing Sudan Ltd.
Also from Dow Jones ("Malaysia Petronas Awarded 1st Offshore Gas Block In Sudan"; Tuesday)...
Malaysia's Petronas (PET.YY) Tuesday said it has been awarded its first offshore gas exploration block in Sudan.
The deal marks the company's entry into offshore operations in Sudan, after being active in onshore exploration since 1997, Petronas said in a statement.
Block 15 covers an area of 28,655 square kilometers within the Red Sea Basin and about half of the acreage is located in deep waters of between 300 to 800 meters.
Petronas Carigali Overseas Sdn. Bhd., a unit of Petronas, has a 35% stake in the block. China National Petroleum Corporation, or CNPC, holds another 35%, Sudan's national oil company, or SUDAPET, holds 15%, Express Petroleum of Nigeria holds 10%, and High Tech Group, a Sudanese company, holds the remaining 5%.
Petronas, CNPC and SUDAPET will jointly operate the block, Petronas said.
"Petronas and its partners are committed to acquire a minimum of 3,500 line kilometers of 2D seismic and 500 square kilometers of 3D seismic, and drill five wildcat wells with total minimum expenditure of $58 million in three commitment periods over 6 years," Petronas said.
Under the contract, investors will sell the discovered gas jointly with the government of Sudan and be given the opportunity to jointly invest in the potential downstream gas, power and petrochemical projects, Petronas added.
Also from Bernama ("Petronas Awarded First Offshore Block In Sudan"; Tuesday)...
Petronas has enhanced its presence in Sudan after being awarded Sudan's exploration Block 15 with the signing of the Exploration and Production Sharing Agreement (EPSA) for the block today.
The signing ceremony, held in Khartoum in conjunction with the sixth anniversary celebrations of Sudan's Petroleum Day, was officiated by Sudan's Minister of Energy and Mining Dr Awad Ahmed El-Jaz.
Also present was Petronas president and chief executive officer Tan Sri Mohd Hassan Marican.
The EPSA, which is the first EPSA in Sudan, marks Petronas' entry into the offshore operation in the country, after being active in the onshore exploration since 1997, Petronas said in a statement issued here Tuesday.
Block 15 covers an area of 28,655 square kilometers within the Red Sea Basin and about half of the acreage is located in deep waters between 300 to 800 meters.
With the award of the Block, Sudan will realise its first integrated gas project.
Petronas Carigali Overseas Sdn Bhd has a 35 percent interest in the block while the remaining equity is shared between China National Petroleum Corporation (35 percent), Sudan's national oil company SUDAPET (15 percent), Express Petroleum of Nigeria (10 percent) and High Tech Group (5.0 percent), a Sudanese company.
Petronas, CNPC and SUDAPET will jointly operate the block.
Petronas and its partners are committed to acquiring a minimum of 3,500 line kilometer of 2D seismic and 500 square kilometer of 3D seismic and to drill five wildcat wells with total minimum expenditure of US$58 million in three commitment periods over six years. Block 15 is known to be gas prone.
Under this contract, the investors will sell the discovered gas jointly with the Government and be given the opportunity to jointly invest in the potential downstream gas, power and petrochemical projects.
Petronas is also active in the downstream retailing through Petronas Marketing Sudan Ltd and recently concluded its participation in the 100,000 barrels per day new Port Sudan Refinery Project.
Apart from Block 15, Petronas already has interests in onshore Blocks 1, 2 and 4; Blocks 3 and 7; Block 5A, Block 5B and Block 8.
Also from AFX ("Malaysia's Petronas wins first offshore project in Sudan"; Wednesday)...
National oil corporation Petroliam Nasional Bhd (Petronas) said it has won its first offshore oil and gas project in Sudan.
Petronas said it was awarded an area known as Block 15, covering a region of 28,655 square kilometers in the Red Sea Basin, after signing an exploration and production sharing agreement.
The move follows its purchase this week of a 50 pct stake in a refinery project in Sudan, to produce high-quality petroleum products.
Petronas Carigali Overseas, a unit of Petronas, will hold a 35 pct interest in Block 15, where half the acreage is located in deep waters.
The remaining equity is shared between the China National Petroleum Corporation, Sudan's national oil company SUDAPET, Express Petroleum of Negeria and the Sudanese High Tech Group, it said in a statement.
The agreement 'marks Petronas' entry into the offshore operation in the country, after being active in the onshore exploration since 1997,' it said.
Petronas and its partners are to drill five wildcat wells with a total minimum expenditure of 58 mln usd in three periods over six years, as well as explore for gas.
'Block 15 is known to be gas prone. With the award of the Block, Sudan will realize its first integrated gas project,' it said.
'Under this contract, the investors will sell the discovered gas jointly with the government and be given the opportunity to jointly invest in the potential downstream gas, power and petrochemical projects.'
Social change for the next generation
Young girl with infant child at refugee camp in Darfur. Photo by Dan Scandling, Office of U.S. Representative Frank Wolf