Russia Invited to Take Part in Sudan’s Oil, Gas Projects

Sudan has invited Russian companies to participate in its oil and gas projects, an advisor to the Sudanese petroleum and gas minister said.

"In the fields of drilling and oil production, there are some sites. These sites have been offered to Russian companies so that they can run these sites and invest in them. These sites do not produce [oil] but they are located close to the main pipelines," Abdel Zahir Mohamed was also quoted as saying by Sputnik.

"There are also [oil] producing sites; they are wholly owned by the state or are occupied by several foreign companies. The Russian companies may also work there and help to increase these companies' production."

The advisor added that Russian firms might also work in the services sector, export oil products to Sudan and invest in the production of energy and liquefied gas.

Mohamed also suggested that Russian firms might engage in natural gas exploration in Sudan, adding that the gas would be used in Sudan as its reserves were limited.

According to the advisor, Sudan intends to cooperate with such Russian companies as Rosneft, Tatneft, Gazprom and Lukoil.

Sudan has been eager to build an oil industry after it separated from South Sudan in 2011. After the secession, the two countries have remained mutually dependent on oil revenues, with the south owning 75% of the oil reserves, while the north owns the only current transport route to get oil to international markets. After the secession, a dispute over transit fees for using Sudan’s pipelines for South Sudan’s production led to a shutdown of oil production and transportation. In 2012, South Sudan and Sudan reached an agreement that allowed South Sudan to resume its oil exports via Sudan.

At present, Sudan is mostly a pipeline provider for its neighbor—and possibly Uganda and Kenya in the future—rather than an oil producer.