SUDAN SIGNS ON SETTLEMENT OF PETRONAS LOAN OF US$100 MILLION

KUALA LUMPUR, --The Sudan Minister of Oil and Gas Dr. Mohamed Zayid Awad signed on behalf of the Government of Sudan Awad by delegation from the Ministry of Finance and Economic Planning and the Vice President of the Malaysian PETRONAS Company Dato Anuar Taib on the settlement of the loan of US$100 million at the Malaysian Capital, Kuala Lumpur during the visit of the delegation of the Ministry of Oil and Gas led by the Minister.

The soft loan began since the nineties of the last century and it was paid as part of the agreement signed with the partners to pay 50% of the transit fees' revenues. PETRONAS company praised the ministry's commitment on signing and implementation, adding that the move will enable the company to pump more investments in Sudan.

The stride came to settle the debts in accordance with the agreement of the total fees and repayment mechanism signed with the partners at the two blocks 3 and 7. And that is an achievement accounted in favor of Sudan in light of the economic conditions and the unjust unilateral blockade on the country, as it is a step encourages investors to engage into the oil field in Sudan.

Dr. Awad urged the company to start immediately in the application of consolidating extraction technology which would raise the extraction rates in the producing fields in Sudan from 12% to 36%, which in turn leads to the augmentation of oil production in the country.

For his part, the PETRONAS Vice President expressed his appreciation and gratitude to the government on this achievement despite the great economic challenge faces Sudan, emphasizing that this incident stimulates the pace of exploration activity and production increase.

The PETRONAS Exploration and Production Sector was directed to raise the number of wells, on which the company agreed upon to contribute to the increase of production rates at the blocks 2 and 4 as well as the increase of oil reserve in them. The two sides also agreed to enter into new agreements.

PETRONAS is deemed as the second-largest investor in Sudan's oil sector since 1995.

Source: Name News Network

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