(Ecofin Agency) - Sudan has called on China to reach a new Production Sharing Agreement (PSA) on an oil field situated in the southern part of the country, as both sides are expected to negotiate the renewal of some agreements that will soon expire.This was declared by the State Minister for Oil, Mahmoud Abdel-Rahman, during a meeting with Chinese Envoy for Arab Affairs, Ambassador Lee Ching.
Both partners deliberated on Chinese oil investments in the country and also on the sharing agreement on Block B2 in Heglig.Abdel-Rahman asked China to reach a new agreement on Block 2B as it will help in boosting production for the interest of the two sides.
The Minister noted that the oil produced from the block does not surpass 20% of the reserves, adding that the ministry is looking to resolve the unsettled issues between the two countries as the oil sector represents the strategic depth of the relationship between Sudan and China.
Block 2B is the most productive field in Heglig. Chinese companies started operating in Sudan in 1996 and controls 75% of Sudan’s oil sector.In line with the PSA, the Chinese companies were granted exploration and production activities and tolerate the financial risks, Sudan Tribune reports.
According to the Chinese envoy, his country gives a special priority for investment in the oil sector in Sudan.“CNPC has reduced its investments all over the world except in Sudan, which indicates the strategic relation between the two countries,” he said.