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Oil at center of U.S. sanctions aimed at Sudan

Nov. 10, 1997

U.S. Secretary of State Madeleine Albright has announced economic sanctions against Sudan, alleging the African nation has sponsored international terrorism and violated the human rights of its citizens. The sanctions bar all U.S. trade and most financial transactions with Sudan, although the administration will consider exemptions on a case-by-case basis if they "are in the U.S. interest." She said, "The purpose of the sanctions is to deprive the regime in Khartoum of the financial and

The sanctions bar all U.S. trade and most financial transactions with Sudan, although the administration will consider exemptions on a case-by-case basis if they "are in the U.S. interest."

She said, "The purpose of the sanctions is to deprive the regime in Khartoum of the financial and material benefits of U.S. trade and investment, including investment in Sudan's petroleum sector."

The executive order banning trade allows a 30-day period for current business activities to be finished and blocks access to Sudanese assets in the U.S. It was issued under the International Emergency Economic Powers Act.

The sanctions may forestall a bill pending in the House of Representatives aimed at punishing countries that allow religious persecution.

E&D work

Several foreign oil companies have been working to help Sudan develop its oil reserves and find more oil (OGJ, Apr. 7, 1997, p. 31).

Sudanese President Lt. Gen. Omar Hassan al-Bashir recently said the government will stress development of oil fields in 1998. The goal is to increase production from 20,000 b/d this year to more than 150,000 b/d in 2 years.

A group of Arakis Energy Corp., Calgary; China's state-owned China National Petroleum Corp. (CNPC); state-owned Petronas of Malaysia; and Sudanese state firm Sudapet Ltd. is developing Heglig and Unity fields in southern Sudan. The group plans to issue contracts in December for construction of a 150,000 b/d pipeline from the fields to the Red Sea.

Last week, Sudan Project Consortium (SPC) disclosed it had tested its El Bakh discovery in the southwest quadrant of the Heglig development area.

The El Bakh well cut about 17 m of pay from two sands in the Bentiu formation at 2,121 m. On test, the well flowed a combined 15,000 b/d of 36? gravity oil at a drawdown of 10%. SPC is composed of CNPC 40%, Petronas Carigali Overseas Sdn. Bhd. 30%, Arakis Energy unit 25%, and Sudapet 5%.