The Deputy Minister of Energy and Mines, Sudan, Hamid Suleiman, disclosed that Sudan is owing to China, India and Malaysia, a combined sum of $3 billion.
The debt to China alone, through the Chinese state-owned petroleum company, CNPC, is $2.5 billion, and the country is finding it hard to clear the debt.
He made this known during a press briefing on new oil policies and plans to boost production. He said drastic measures have been taken to reduce the number. The country wants to deduct 95% of its oil revenues, leaving the state with only 5%.
The debt is mainly caused by Production Sharing Agreements that the Sudanese public entities have entered into with companies in these countries and the import that they provide. He said the debt continues to accumulate.
Due to the situation, the Undersecretary announced that at the end of December 2020, Sudan will terminate the CNPC contract in Block 6 of the Muglad Basin, in West Kordofan State, to save money and to re-negotiate the terms of the contract.
Sudan is also holding discussions concerning new oil contracts with American and European companies for new investments in the sector.
The Undersecretary’s words were supported by the line ministry which sent a note to the Chinese company announcing the agreement can only be renewed under new conditions.