Sudan Oil Commission States in Favor of French Total
July 3, 2007 (KHARTOUM) — The two partners of the government of national unity have agreed to maintain the French Total in the concession of oil exploration in Block 5, a press report said today.
According to the pro-Sudanese ruling party Sudanese Media Centre (SMC), Sudan’s National Petroleum Commission has decided to not absorb the British While Nile oil company in the oil consortium working in Block 5.
The decision to exclude the White Nile was taken at the last meeting of the oil commission, and after receiving the joint partisan committee’s recommendations, along with the option to appoint a new company (whether White Nile or other) instead of the previous company (Marathon) on a commercial basis.
The US based Marathon Oil Corp. which is Total’s partner in Block B, announced its withdrawal from the consortium as it is bound by US laws that prevent firms from doing business in Sudan.
According to the SMC, It also decided on an adequate and fair compensation for the White Nile in return for any achievement in the fields, but it didn’t give any indication on who will pay the indemnities.
On June 14, Mansour Khalid, a presidential advisor from the SPLM, said in a press statement reported by Bloomberg that the oil commission has ruled in favour of the French Total and validated its contract. He further indicated that White Nile would not be included in the consortium.
However, and in spite of different reports in this direction, the White Nile stated that it had been advised not only that it would be part of any new consortium formed to prospect for oil in Block B, but also that it would have a 25% stake.
At the end of last May, Salva Kiir ordered a freeze on oil exploration in Jonglei state. Kiir also formed a committee to investigate the contract of White Nile oil company, headed by ex-England cricketer Phil Edmonds.
Total has operating rights for the block with a 32.5 percent stake, as it was the case in the initial deal, Kuwaiti Kufpec Sudan Ltd 27.5 percent instead of 25% and state-owned Sudapet maintains its 10 percent, the southern Sudan government owned Nilepet 10%. The remaining 20% should be offered in a public bid.
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