Sudan

Sudan_flagg
09.09.2010
   

Oil for Development – Sudan

 

Cooperating institutions
Government of National Unity (GoNU )
Government of Southern Sudan (GoSS)

Goals and objectives
Contribute to implementation of the Comprehensive Peace Agreement (CPA), with main focus on wealth sharing, technical assistance, and capacity building. A separate capacity building programme has started with GoSS.

Project period
2006 onwards

Budget 2009
NOK 15 million

Programme
The programme has three main focus areas:

  • Support CPA implementation
  • Technical support
  • Capacity building

Contact
Oil for Development:
Mr. Ivar Aarseth, iaa@norad.no

Cooperating institutions in Norway
Ministry of Foreign Affairs (MFA)
Norwegian Petroleum Directorate (NPD)
Norwegian Directorate for Nature Management (DN) Petrad

 

map

 

Country factsmap


Official Name
Republic of Sudan

Capital
Khartoum

Chief of state
President Umar Hassan Ahmad al-Bashir

Head of Government
President Umar Hassan Ahmad al-Bashir

Population
41 087 825 (2009 est.)

Petroleum sector, key figures
Average oil production: 0.48 mill bbl/day (2008)
No gas production (2009)

Organization of the sector
Ministry of Energy and Mining

 

Brief history of the project


As one of the witnesses to the Comprehensive Peace Agreement (CPA) signed on 9 January 2005, Norway is committed to supporting the implementation of the CPA. This commitment impacts all work Norway is undertaking in Sudan, including activities within the petroleum sector. It entails a commitment to work with both the Government of National Unity (GoNU ) and the Government of Southern Sudan (GoSS) as well as with the National Congress Party (NCP) and the Sudan People’s Liberation Movement (SPLM ).

In October 2008, the Norwegian Ministry of Foreign Affairs and the Sudanese Ministry of Energy and Mining (MEM ) signed a Memorandum of Understanding regarding cooperation within the petroleum sector. Based on the MoU, Norad will be conducting discussions with MEM in Khartoum and GoSS in Juba with the aim to sign agreements on long-term commitments (3–5 years) within the following areas:

  • Resource management
  • Environmental management
  • Revenue management
  • Capacity building

Norway has continued its cooperation with the authorities in Sudan within the petroleum sector and has gained a good understanding of the sector. Work has been performed by the Petroleum Envoy based in Sudan. In addition, Norway has engaged a petroleum adviser to work in Juba from August 2009.

 

Activities in 2009


CPA implementation
According to the CPA, Southern Sudan shall decide on a possible secession through a Referendum in 2011. Through 2009, Norway assisted both parties in addressing post-2011 issues related to the petroleum sector.

Norway started preparations to assist the National Petroleum Commission (NPC) in performing an audit of the petroleum industry, i.e. to evaluate the production, transportation and marketing of oil, and the revenue split between GoNU and GoSS.

Norway proposed to support Sudan in strengthening the secretariat of the NPC.

Technical support
A report on “Environmental and Social Impacts of Petroleum Activities in Southern Sudan” was finalized in January 2009. The report was submitted to the SPLM , GoSS and GoNU . Norway proposed that the report be made public.

A project evaluating the incentives in some of the exploration and production sharing agreements was finished in July 2009.

The Ministry of Energy and Mining (MEM ) in Khartoum requested Norway to give support to improved oil recovery (IOR) from the oilfields. The support will also include advice on handling of produced water.

Norway is performing a functional analysis of MEM in Khartoum.

Capacity building
A project covering functional analysis and Training Needs Assessment of the GoSS Ministry of Energy and Mining and Ministry of Finance was completed. A capacity building programme for MEM and NilePet was prepared in cooperation with the Ministry and will be initiated in January 2010. The programme will run for 3–5 years.

In May and June, Petrad conducted two four-week training courses in Khartoum for a total of 30 representatives of the oil sector in both GoSS and GoNU.

Three people from Sudan participated in Petrad’s eight-week training programmes in Stavanger.

A “Petroleum Revenue Reporting and Forecasting Tool” was developed for the GoSS Ministry of Finance, and its staff was trained to oversee revenue sharing.


Key achievements in 2009


The revenue reporting and forecasting tool improved GoSS’ control over revenue sharing calculations, its ability to forecast oil revenue, as well as its ability to conduct long-term oil revenue budgeting.

The preparation of Post-2011 scenarios for the petroleum sector increased the level of understanding among the parties concerning potential consequences of the 2011 referendum.

 

Sudan. Photo: Bengt Hope

Sudan. Photo: Bengt Hope