www.Sudapet.sd

Salah Hassan WahbiPresident & CEO

4th World National Oil Companies CongressLondon, 21-24th June 2010

2Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

3Sudapet Co. Ltd.

Exploration History

Current active Consortiums:Producing: GNPOC, WNPOC, PDOC, PetroEnergy.Exploring: 13 Companies.  

Agip Red Sea 1959-1962Chevron 1974-1992Total 1980Sun Oil 1982-1990State Petroleum 1993-1996Gulf Petroleum 1995-2001First Oil exportation shipped 1999

4Sudapet Co. Ltd.

Exploration HistorySudan Geological Map and Concessions Map 

5Sudapet Co. Ltd.

Exploration History

Main Sedimentary Basins• Misaha Basin

• Abyad Basin

• Red Sea Basin

• Murdi Basin

• Khartoum Basin

• Blue Nile Basin

• Melut Basin

• Muglad Basin

6Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

7Sudapet Co. Ltd.

Exploration Production Sharing Agreement (EPSA)

The EPSA Model regulates the relation between the government and the operating companies, under the Petroleum Act of 1998. 

8Sudapet Co. Ltd.

Exploration Production Sharing Agreement (EPSA)

Obtaining Concession in the Sudan Proper Pre- Qualification of the Company. Introductory Letter to the Minister. Permission of the technical Staff to review the preliminary data. Further Detailed Data may be obtained at Cost under a Confidentiality Agreement. Model EPSA Draft will be given upon firm interest of the contractor. Submit Fiscal Parameters to Government.To obtain better terms block is offered through a licensing round.

9Sudapet Co. Ltd.

Exploration Production Sharing Agreement (EPSA)

Yr 1 Yr 2 Yr 3 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9Yr 4

1st Commitments 2nd Comm. 3RD Comm.

Yr 10 Yr 11 Yr 13Yr 12 Yr 15Yr 14 Yr 25Yr 16

Exploration Period

EPSA Exploration Period

six (6) Contract Years determined from the Effective Date

During Exploration Period Contractor commits to undertake a Minimum Work Program & Expenditures

Such periods shall be renewed for an additional 5 years subjective to the approval of the Minister.

10Sudapet Co. Ltd.

Exploration Production Sharing Agreement (EPSA)

COST OIL/GAS , PROFIT OIL/GAS SPLITS, ASSIGNMENT, BONUSES, RENTALS ARE NEGOTIABLE .Custom exemptions for all oil & gas materials and equipments. No Tax No Royalty.

11Sudapet Co. Ltd.

Exploration Production Sharing Agreement (EPSA)

End of the first commitment period

End of the second commitment period

End of the third commitment period

Contractor may relinquish all or  any part of the contractarea provided that itsobligations have been fulfilled.

Not less than 25% of the area of the Contract Area.

Not less than 25% ofthe original ContractArea. 

The remaining of the  Contract Area. Not Covered by discovers

12Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

13Sudapet Co. Ltd.

Petroleum Infrastructure 

Crude Pipeline 

PipelineLength(Km)

Diameter(Inch)

Capacity(BBL/D)

Heglig‐MTExport Pipeline 1610 28 450,000

Palogue‐Marine TerminalExport Pipeline

1400 32 500,000

El Fula‐Khartoum Pipeline  720 24 200,000

Tharjath‐HegligExport Pipeline 172 24 200,000

14Sudapet Co. Ltd.

Petroleum Infrastructure 

Product Pipeline 

PipelineLength(Km)

Diameter(Inch)

Capacity(BBL/D)

Khartoum PortsudanProduct Pipeline‐ 1976

740 8

KhartoumPortsudanNew Product Pipeline‐2000

740 12

15Sudapet Co. Ltd.

Petroleum Infrastructure 

Refineries 

Refineries Capacity bbl/d

Port Sudan Refinery‐1964 25,000*

Obaid Refinery‐1996 15,000

Khartoum Refinery‐2000 100,000

Khartoum Refinery (Ext. 2012) 150,000

*Suspended, planning for new refinery

16Sudapet Co. Ltd.

Petroleum Infrastructure 

Equipment & Facilities 

• Drilling Rigs: 26

• Work-Over Rigs: 22

• Seismic Crews: 14

• Processing Centers, Labs, Data Information Center, and Training Centers.

17Sudapet Co. Ltd.

Petroleum Infrastructure 

Seismic Crews

Company No. Crews Crew Type

BGP 52 3D2 TZ1 2D Vib

ZPEB 6

2 2D1 3D1 2D Vib2 2TZ

BGC 3 2 2D1 3D

18Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

19Sudapet Co. Ltd.

Petroleum Acreage and ProductionBlock 1,2,4

Greater Nile Petroleum Operating Company Ltd (GNPOC)

Block 3, 7

Petrodar Operating Company Ltd (PDOC)

Block 5A,5B,8

White Nile (5B) Petroleum Operating Company Ltd (WNPOC)

Block 15

Red Sea Petroleum Operating Company Ltd (RSPOC)

617

Block 6

WNPOC (Block 5A)Prod : 20.5 KBOPDAPI : 21 degree API

PDOC (Block 3/7)Prod : 275 KBOPDAPI : 25 degree API

GNPOC (Block 1/2/4)Prod : 184 KBOPDAPI : 33 degree API

PetroEnergy (Block 6)Prod : 41 KBOPDAPI : (Heavy Oil 18-20 Light 30-32) degree API

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Average Recovery Factor

814

164 21 490

1000

2000

3000

4000

5000

6000

7000

GNPOC PDOC WNPOC PetroEnergy

Rec

over

able

Oil

(MM

STB

)

0

10

20

30

40

50

60

Rec

over

y Fa

ctor

STOIIPEUR & PRNp%RF

Total STOIIP : 15.9 Billion barrelsTotal EUR/PR : 3.6 Billion barrels

About 23% & Remaining 77% still left in the ground to be exploited

21Sudapet Co. Ltd.

Potential Upside in Reserve – 2.9 Billion Barrels valued at USD 116 Billion

0

2

4

6

8

EU

R, B

illion

Bar

rels

Existing Water Injection EOR Total

Implementation dependent upon technical and commercial feasibilities.

* Assuming incremental RF of 3% for WI & 15% for EOR projects. Oil price assumed at USD40 per barrel.

3.6

2.4

6.5

0.5

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Water coning and fingering are major challenges.  Water injection will not help much in improving heavy oil recovery

3.6

2.4

6.5

oil zone

Injector Producer

Fingering

Water Flooding

Bypassed

kkk o

ro =( )( )oswcro

wsorrw

kk

MRatioMobilityμμ

//

)(@

@=

Note: 1. Presence of thief zones and poor mobility ratio directly influence the success of water injection project.

2. Worst, in heavy oil it will behave like water recycling project. Small increment in oil production but huge water produced to handle.

23Sudapet Co. Ltd.

Maximum realized potential dependent upon project execution timing and project viability.Instead of increasing the current capacity, it may help to arrest production decline and prolong sustainable national production as primary reserve is depleting.

0

2

4

6

8

Existing Water Injection EOR Total0

100

200

300

400

500

600

700

800

900

1000

Existing Water Injection EOR TotalNote: * Assuming production at 5% EUR per year.

3.6

0.52.4

6.5

522

70

330

922

Pot

entia

l Ups

ide

EU

R, M

MS

TB

Pot

entia

l Ups

ide

Pro

d., K

BO

PD

24Sudapet Co. Ltd.

EOR Improves Recovery Factor up to 75%

Source: “A Niche for Enhanced Oil Recovery in the 1990s” by Larry W Lake (Univ. of Texas), Raymond L Schmidt (Chevron), Paul B. Venuto (Mobil), January 1992.

25Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

26Sudapet Co. Ltd.

Sudapet Vision

A Leading Integrated Oil & Gas Company of ExcellenceA Leading Integrated Oil & Gas Company of Excellence

27Sudapet Co. Ltd.

Sudapet Mission 

To find, sustain and increase oil and gas for Sudan.To Contribute to the protection and enhancement of the national interest in the industryTo build the capabilities and competencies of Sudanese nationals to reach world class workforce standards.To balance the roles as business‐oriented companyand socially responsible citizen

28Sudapet Co. Ltd.

Sudan Concession Map

6 PETROENERGYCNPC:95%SUDAPET: 5%

1,2,4 GNPOC:CNPC: 40%PETRONAS: 30%ONGC: 25%SUDAPET: 5%

5A: PETRONAS: PETRONAS: 67.875%OVL: 24.125%SUDAPET: 8%

BLOCK 16 IPC

SUDAPAK:ZAVER+MTC: 85%SUDAPET: 15%

BLOCK 8PETRONAS: PETRONAS :77%SUDAPET: 15%HI TECH: 8%

3,7 PDOC:CNPC: 41%PETRONAS: 40%SUDAPET: 8%Others 11%

BLOCK C, APCO:SUDAPET: 90%KH-STATE: 10%

BLOCK B:TOTAL: 32.5%MARATHON: 32.5%KUFPEC 25%SUDAPET :10%

BLOCK 13 - CPOCSUDPAET 15%

BLOCK 15 -RSPOC Sudapet 15%

14 SALIMASUDAPET: 100%

BLOCK 10 SUDAPET – 40%

12 A SAHARASUDAPET: 15%

17 STARSUDAPET: 34%

12

12 A

29Sudapet Co. Ltd.

Sudapet Corporate Agenda

E&P Business

Downstream Business

Petroleum Services

Leadership

(White Nile)(Blue Nile) (Riiver Atbara)Nile Source

(Triple Pillars)

Nile Mainstream(Triple Core Business)

Destination Nile Delta(What we want to be)

… is proudly affiliated to the mighty Great Nile, sourced by its triple tributaries, progressing in a firm course, unstoppable towards its noble destination……

A Leading Integrated Oil & Gas Company

of Excellence

FULL-FLEDGED PETROLEUM

OPERATING AND SERVICES COMPANY

ON PAR WITH OIL & GAS MULTI NATIONALS

30Sudapet Co. Ltd.

Desired Business Model

ProducingGNPOCWNPOCPDOC 

Petro‐Energy

ExplorationAPCOSalima CPOCRSPOCWNPOC SaharaSudapakStaroil

Asawer(EPCC)

BGC(Geophysical)

BPC(Processing)

Centroid(PMC )

Sudapet PTC(Training)

Crude Oil Sales and Marketing

Sudapet Carry

Sudapet G&A

E&P Core Business Petroleum ServicesDownstream Business

R&T Business

Full‐Fledged Operator

2011

LNG

Sudapet Fertilizer Ltd.

Gas Turbine Power Plants

Pipeline and MT Operator

Asawer as a Vehicle for growth in key Petroleum Services…

Alternate Energy (Solar)

International JV

Operate Relinquished Areas

Cash Call

Sun Oil(Drilling)

Create value along the Value Chain

31Sudapet Co. Ltd.

Sudapet as a PartnerCurrent Situation and Issues:

There are 11 JOCs in 16 EPSAs.All Sudapet’s secondees are at managerial level.These JOCs are technically driven by foreign partners.Many national staff have been well trained in JOCs but are under‐utilizedWhile majority of JOCs are lacking technical national staff. The current “silo” employment system hinders staff re‐allocation.

Desired Situation: SUDAPET in alignment with  MEM TO:Be charged with developing the national professionals utilizing all the available resources Technically influence all  JOCs business plans to be in line with the national interest  while considering the JOCs interest. 

32Sudapet Co. Ltd.

Sudapet as an OperatorCurrent Situation and Issues:

Sudapet holds 90% share in Block C,  significant share in Blocks 17, 12 and 10.At the end of some Exploration Periods,  partially to fully Relinquished Blocks will be available to Sudapet. At the end of some EPSA periods more acreage including producing fields  will be available to Sudapet.The current staffing and capability will NOT enable Sudapet to meet the future challenging demands.

Desired Situation: Sudapet needs to be well equipped with competent staff and technology to  become a successful national operator and expand beyond the borders.Build capable staff to operate SUDAPET operated Block (SOB) by end of 2011.Recruit strong technical team.Leverage on technical alliance to develop own experience. 

33Sudapet Co. Ltd.

Sudapet’s Key Challenges

Develop people and change mindset

Full‐fledged Operatorship by end of 2011

Champion EOR technology application

Prepare for the upcoming “Gas Era”

Build up ENGINEERING CAPABILITY

Champion early monetization of Red Sea Blocks

34Sudapet Co. Ltd.

Petroleum Services Provide quality technical services to JOCs on a Technology alliance basis.

Focus on long term value creation and not the short term financial gain.

How to achieve….Establish and sustain affiliated Petroleum Service companies in all disciplines (logging, seismic, drilling, engineering, etc.….)Form technology Partner ship with reputable international firms and 

35Sudapet Co. Ltd.

Staffing Strategy 

Establish competitive employment packages through direct  hire contract to attract and retain high caliber professionals. 

Recruit young professionals in all disciplines and build a career path and a development program for all staff with clear targets.

Establish clear career progression through technical ladder in addition to managerial ladder.

36Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

37Sudapet Co. Ltd.

Sudapet Affiliated Companies

SUN OILCENTROID ASAWER

38Sudapet Co. Ltd.

Sudapet Affiliated Companies

Blue Nile Processing Center (BPC)

*Joint venture company between Sudapet (67%) and BGP (33%).

*Providing qualified 2D and 3D processing services for clients

*Technology Transfer

39Sudapet Co. Ltd.

Sudapet Affiliated Companies

Blue Nile Geophysical Company (BGC)

*BGC is a joint venture between Sudapet (65% ) & BGC (35% )

*Number of Crews and Equipment of BGC:- Two 2D crews- One 3D crew

40Sudapet Co. Ltd.

Sudapet Affiliated Companies

ASAWER Oil & Gas

Oil Service Provider*Construction services included EPCC & EPCM*Engineering & service design*Power Supply, project management,*Chemical, pipeline, marine, Procurements services

41Sudapet Co. Ltd.

Sudapet Affiliated Companies

CENTROID

*Joint Venture of Sudapet 40% and OGP 60%

*Project Consultancy Services- GNPOC- PDOC

42Sudapet Co. Ltd.

Contents

Sudan Exploration Historical Background1

Exploration Production Sharing Agreement (EPSA)2

Petroleum Infrastructure 3

Oil & Gas Production in Sudan 4

Sudapet Enrolment 5

Sudapet Affiliation 6

New Trends7

43Sudapet Co. Ltd.

New Trends

Red Sea Shallow Waters Small Field Development Concept

Unconventional Shale Gas Resources

Structural GIS and SEEBASE™ Project 

44Sudapet Co. Ltd.

Red Sea Shallow Waters Small Field Red Sea Shallow Waters Small Field Development ConceptDevelopment Concept

Proposed Red Sea Shallow Waters Small Fields 

Development using a combination of: 

1‐Develop‐While‐Exploring (DWE) Approach

2‐Mobile Offshore Production Unit (MOPU)

3‐ Light Weight Structure (LWS)

4‐Humming  Bird Concept

45Sudapet Co. Ltd.

CONCEPT OF MOPUCONCEPT OF MOPU--LWS COMBINATION FOR SMALL FIELD LWS COMBINATION FOR SMALL FIELD DEVELOPMENT IN SHALLOW RED SEA WATERSDEVELOPMENT IN SHALLOW RED SEA WATERS

45

MOPU

LWS

Offshore production facilities with Oil and Gas processing units installed on a converted old Jack-up Rig

Free standing conductors installed by Drilling Rig

46Sudapet Co. Ltd.

New Trends

Unconventional Shale Gas Resources

Blue Nile Rift Basin

Depot Centers

° Wells

°

°°

°°

Namel -1

Hosan -1

Dinder -1°

West Dinder -1

Jauhara -1

Farasha -1

Potential UnconventionalGas Trend

Possible Shale Gas Play

AOI

47Sudapet Co. Ltd.

New Trends

Blue Nile Rift Basin (Unconventional Shale Gas Study)

• Evaluation of the potential shale gas resources of the Blue Nile Rift Basin.

• Looking to verify the ultimate potential recoverable reserves.

• Horizontal Fracture Stimulation

48Sudapet Co. Ltd. 48

Data CollectionPhase 0

Compilation and processingPhase 1

SEEBASE™ productionPhase 2

Feb 2009Feb 2009

May 2009May 2009

GIS Basis 2009

GIS Basis 2009

Dec 2009Dec 2009

GIS Basis 2009

GIS Basis 2009

Reports & GIS productResults

Structural GIS and SEEBASE™ Project 

49Sudapet Co. Ltd.

Core DatasetsGravityMagneticsDigital Elevation Model (DEM)Surface GeologyLandsat

Datasets are divided into:CORE datasets are interpreted and integrated in detail and CALIBRATION datasets those which are used selectively to constrain the interpretation

• Calibration Datasets– 2D seismic– Wells– Rock properties– Plate tectonic reconstructions– Sequence stratigraphy– Seismic refraction data– Landsat– Deviatoric stress data– FrOG Tech regional knowledge-base– Sudapet regional knowledge-base– Publications, papers, maps, cross

sections

50Sudapet Co. Ltd.

SEEBASE™Work Flow

PETROLEUMPLAY

INTEGRATION

SEEBASE™PRODUCTION

AND DERIVATIVE GRIDS

“BOTTOM-UP”INTEGRATED

INTERPRETATION& CALIBRATION

STATE-OF-THE-ARTDATA PROCESSING

& COMPILATION

DOCUMENTATIONPRESENTATION VISUALISATION

DELIVERYPROJECT

INITIATION

Project Setup &

Management

Rock Property

Calibration

Magnetic Depth to Basement Modelling

Crustal-scale gravity

modelling

Gravity/Magnetics/DEM Image Processing

Plate Tectonic Events,

Kinematics

Basin-scale Structural

Interpretation using all datasets

SEEBASE™Construction

2D & 3D Seismic

calibration

SEEBASE™Basin

Architecture & Evolution

Total Sediment Thickness

Migration Pathways/

Fluid Focusing

Interpret Salt &

Volcanics

Reservoir & Seal Quality

Trap Timing, Size &

Distribution

Interpret Basement Terranes,

Composition, Fabric

Maturity + Hydrocarbon Generation

FrOG Tech Workshop

Report

Final GIS Preparation

Delivery Workshops

Ongoing Support

Magnetics

Gravity

DEM/Bathymetry

Surface Geology

Publications & Reports

Wells

Seismic Navigation

Other Data

Landsat/Radarsat

Construct GIS Base & Metadata

Event & Response Maps for

Each Basin & Basin Phase

Data Compilation

& Processing

Enhancement Processing

SEEBASE : Structurally Enhanced view of Economic Basement

51Sudapet Co. Ltd.

Data & Process

*- Different Data were involved in this project activities

52Sudapet Co. Ltd.

Results

*- The First data Set for the Whole Country from ONE point of View

*- Solid tool for exploration Mgrs and Decision makers in Oil field in Sudan

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