New agreement on petroleum cooperation with Sudan

“Sudan has confidence in the way we manage our petroleum resources. This is an opportunity for Norway to promote peace in Sudan,” said Minister of the Environment and International Development Erik Solheim when he signed the new agreement with Sudan on development cooperation within the petroleum sector.

On 15 October, Mr Solheim and the Sudanese  Minister of Energy and Mining, Al-Zubayr Ahmed Hassan signed an agreement on development cooperation within the oil and gas sector.

Norway will provide expertise to help develop more efficient, transparent and environmentally sound management of oil and gas resources in Sudan. This support is being provided under Norway’s Oil for Development programme, to both the Government of National Unity and the Government of Southern Sudan.

The conflict over the oil-rich Abyei region has been a particular challenge since the peace agreement between Northern and Southern Sudan was signed in 2005. Abyei is situated on the border between Northern and Southern Sudan. Following renewed violent clashes in this region earlier this year, the parties agreed on  a roadmap that established procedures for settling the border and related issues.

Sudan produces around 500 000 barrels of oil a day, and oil sales are Sudan’s largest source of income. Most of the oil is extracted in Southern Sudan. The Government of Southern Sudan is almost completely dependent on oil revenues. Sudan does not produce gas at present, but has gas reserves in the Red Sea.

Norway has provided assistance to Sudan’s oil sector for several years, for example in the areas of capacity-building and advisory services to the authorities in both north and south. A Norwegian oil adviser is also part of the staff at the Royal Norwegian Embassy in the country’s capital, Khartoum. 

Read the agreement here.