Sudan

Map

 

BRIEF HISTORY OF THE PROJECT

As one of the witnesses to the Comprehensive Peace Agreement (CPA) signed in January 2005, Norway is committed to supporting the implementation of the CPA. This commitment influences 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 MFA and the Sudanese Ministry of Energy and Mining (MEM) signed a Memorandum of Understanding (MoU) regarding cooperation within the petroleum sector. Based on the MoU, OfD has been conducting discussions with MOP in Khartoum and MEM in Juba with the aim of signing cooperation agreements (3–5 years) in the areas of resource management, environmental management, revenue management and capacity building.

In addition to the capacity building programmes for the North and South, Norway has been asked to facilitate the Post 2011 negotiations related to the petroleum sector between the two parties. Norway has also taken on the task to assist the National Petroleum Commission (NPC) in performing an audit of the petroleum chain. Norway today has four advisers working both in Khartoum and Juba, in addition to a secretariat of legal and economic staff.

 

ACTIVITIES IN 2010

 

Support to the implementation of the CPA

Throughout 2010, Norway assisted both parties in addressing Post 2011 issues related to the petroleum sector. The issues of greatest importance have been the split of the oil reserves, a transition period for the transfer of oil revenue and ownership of the infrastructure. Based on the technical information available, Norway presented different solutions to solve these issues.

Norway made preparations to assist the NPC in performing an audit of the petroleum chain, i.e. to evaluate the production, transportation and marketing of oil, as well as the revenue split between GoNU and GoSS. A ToR was approved by the Presidency and a list of potential consultants was presented to the NCP.

Norway started the work to locate a group of advisers to MEM and MoFEP. The advisers will work in the ministries until human resources from South Sudan can take over.

 

Technical support

One activity in the OfD programme that involved both the North and the South is an evaluation of the Increased Oil Recovery (IOR) potential for three fields, namely Heglig, Unity and Niim. Phase 1 of the IOR project found very encouraging results, and it has been recommended to continue with Phase 2. The study indicated that the recovery factor for the fields could be increased from 23 percent (average) to more than 30 percent, which would correspond to more than USD 5 billion in increased revenue. The study included advice on handling of produced water which is a big challenge.

The programme also included a functional analysis of MOP in Khartoum and recommendations on how to organize the ministry.

 

Capacity building

A capacity building programme for MEM and NilePet was prepared in cooperation with the Ministry. The programme will run for 3–5 years and will focus on resource management and environmental management. Workshops on environmental management issues were held both in Khartoum and Juba.

 

KEY ACHIEVEMENTS IN 2010

 

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. The work has been well received by the parties.

The Improved Oil Recovery (IOR) study demonstrated a possible win-win situation for the North and the South.


05.07.2011