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Sudan in debts of over $3 billion to Chinese oil firms and partners as oil dealing goes wrong

Nov 29, 2020 (Nyamilepedia) – The Republic of Sudan has announced that the country owes a total of $3 billions to the China National Petroleum Corporation(CNPC) and foreign partners from India and Malaysia dealing in oil sector.

Mr. Ma Xinmin, the Chinese Ambassador to Sudan and his delegation meets Mr Al Burhan, the President of the Sovereignty Council of Sudan in Khartoum in January 2020(Photo credit: courtesy image/Chinese embassy in Sudan)
Mr. Ma Xinmin, the Chinese Ambassador to Sudan and his delegation meets Mr Al Burhan, the President of the Sovereignty Council of Sudan in Khartoum in January 2020(Photo credit: courtesy image/Chinese embassy in Sudan)

Speaking to media agencies on Saturday, the Undersecretary of the Ministry of Energy and Mining, Hamid Suleiman, said the Sudanese authorities is managing a debt of over $3 billion which the country has been attempting to repay by deducting a percentage of its oil proceeds amounting to 95% but the amount continues to accumulate.

“The total debts of the oil industry amounted to 3 billion dollars, of which 2.5 billion dollars to the Chinese Petroleum Corporation (CNPC) in addition to 500 million dollars to its partners from India and Malaysia,” the Undersecretary of the Ministry of Energy and Mining, Hamid Suleiman

Given the economic hardship Sudan is facing, the Undersecretary announced that Sudan will terminate the CNPC contract in Block No. 6 of Muglad Basin in West Kordofan State.

In a separate note, the Ministry of Energy and Mining confirmed that it has officially sent a notice of expiry to the Chinese National Petroleum Corporation regarding the expiring date of the contract of Block No. 6 which will be in one month.

According to the Minister, the contract will expire on December 31 and it could be renewed only under new terms and conditions.

The Sudanese authorities decry that it is no longer feasible for the Chinese firm to take all the 95% it has been getting leaving the Sudan government-owned Sudapet with only 5% of the proceeds.

The move comes at a time the Sudanese authorities are discussing new oil contracts with the American and European companies to allow them to invest in the Sudanese oil sector in return of a good gesture after the U.S promised to remove Sudan from the list of countries deemed to be sponsoring terrorism.

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