1. Dr. M. Zayed Awad, Greater Nile Petroleum Sudan SUDAN: A country with an emerging oil industry in Africa 8 th African Oil & Gas Conference & Exhibition

2. Presentation Outlines  Introduction  Area, location & none HC resources  Exploration activities in Sudan  Major operating companies & milestones  Downstream activities in Sudan  Opportunities  Developing local content  Economic impacts  Highlights of SIOGE 2004  Sudan International Oil & Gas Conference & Exhibition; September 2004

3. Total area of Sudan is 2.5 Million sq. km.; the largest in Africa. Population is ca. 30 Million, of which 80% work in agricultural sector, and contribu- ting 40% of GDP Location and Area Introduction SUDAN

4. Astonishing Facts! Introduction Agriculture has been Sudan's most important natural resources. Current Oil-export industry is leading to substantial shifts in the economic structure. Natural water resources is around 155 cubic km/ year; yearly withdrawal (for agricultural purposes, domestic & industry use) is only 11% of this amount Diversified climate suitable for year-round production Cultivable, fertile area is estimated to be 1.0 Million sq. km. of which only 7% is cultivated.

5. Exploration activities  1958 – 66AGIP acquired seismic & drilled 6 wells in Red Sea  1974Chevron In Sudan  1979/80 First significant oil discovery by Chevron (Unity/Heglig Fields) in blocks 1 & 2.  1993State Petroleum Co. signed EPSA on Blocks 1, 2 & 4  1995CNPC signed EPSA over Block 6  1996GNPOC Formed “localization of petroleum projects”  1999First oil export from Sudan on August 30  2001WNPOC signed EPSA over Block 5B  2001 PETRODAR formed, EPSA on Blks 3&7 signed Major operating companies & milestones Current daily production is 280,000 b/d (Blocks. 1, 2 & 4) Will increase to 600,000 b/d by end 2005

6. EGYPT CENTRAL AFRICAN RIFT SYSTEM BLOCK 2A TALIH FIELD UNITY FIELD May-25 Bamboo Tayib Rihan Laloba Barki Hamra Kanga El Ghazal TOMA SOUTH El Nar (U6) El Saqr(U7) El Harr(U8) Kaikang-1 Kuoc Nor Nyang Amal-1 Jak RED SEA BLOCK 4 BLOCK 1A ELTOOR TOMAR Kaikang-2 HEGLIG FIELD Jidian FIELD Jamousse Sadeeq El Mahafir Amal Updip(K25) Umm Saqura (U14) Malok (K9) K5 El Majak Bamboo South NH12 El Toor N El Toor E Munga Cent. WU5 Khairat E KS1b (Tamur-1) Shammam-1 (Drilling) KN15 KN20 (Timsah-1) KN23 KN1 Estimated Reserves 3.0 Billion Barrels Regional Geological Setting

7. Geological Map of the Sudan Basement Rocks Cretaceous & Older Sequences Tertiary & Older sequences L E G E N D Igneous Rocks Current Exploration activities covers only 35% of the prospective areas. 12 1 3 2 7 5 4 6 9 8 10 13 14 16 15 11 17 1.Muglad 2.Melut 3.Sudd 4.Jongalei 5.Pibor 6.Baggara 7.Kosti 8.Blue Nile 9.Khartoum 10.Atbara 11.Abyad 12.Mourdi 13.W. Howar 14.Mesaha 15.Suwakin 16.Dongonab Sedimentary Basins

8. Basheir Terminal Petroleum infrastructures in Sudan Pipeline 1600 km

9. 6 CNPCIS: CNPC:95% SUDAPET: 5% 1,2,4 GNPOC: CNPC: 40% PETRONAS: 30% ONGC: 25% SUDAPET: 5% 5B WNPOC: IPC: 24.5% PETRONAS: 41% OMV:24.5% SUDAPET: 10% 5A: PETRONAS: PETRONAS: 68.875% OMV: 26.125% SUDAPET: 5% BLOCK 16 IPC 9 ZAVER : ZAVER: 85% SUDAPET: 15% BLOCK 8 PETRONAS: PETRONAS :77% SUDAPET: 15% HI TECH: 8% 3,7 PDOC: CNPC: 41% PETRONAS: 40% SUDAPET: 8% GULF: 6% THAN: 5% BLOCK C, APC: CLIVEDEN: 37% HI TECH: 28% SUDAPET: 17% KH-STATE: 10% HEGLEIG : 8% BLOCK B: TOTAL: 32.5% MARATH: 32.5% KUWAIT FOREGN 25% SUDAPET :10% License position in Sudan

10. Opportunities Why has there been so much interest in onshore Sudan? Success & profitability  High success rates (69%)  Low Exploration Unit Finding Cost ($0.90/b) Improved infrastructure  1600-kilometer pipeline from Heglig to Bashyer Marine Terminal in the Red Sea.  Three refineries of 90,000 b/d capacity (to be expanded to 155 b/d) Contractual arrangements  Cost recovery & profit sharing basis (PSC)  Encouraging tax & custom exemption Sudan is providing areas with exciting opportunities for exploration companies of all sizes.

11. Opportunities Where are we heading? Current situation  Meanwhile, Sudan signed ten petroleum contracts to eleven foreign and four local companies.  Five blocks are on offer now; 10, 12, 13, 14 and 15, in which studies have proven that there is petroleum potential.  Exploration activities cover only 35% of the prospective areas in Sudan.  Future investments  Petrochemical industry: for fertilizers, rubber products, printing ink, plastics, pigments, and synthetic fibers. There still a potential for a viable upstream & downstream oil industry in Sudan.

12. Engagement of small indigenous companies with smaller capital allows them to partake in oil profits and minimize capital flight Localization of projects will facilitate knowledge and technology transfer, which are crucial for better harnessing of local workforce and resources Nationalization program is focusing on improving the technical capability and competence levels of the local workforce (90% of two major op. co. nationalized within 5 yrs.) For the industry to be beneficial to the Sudanese people, the Government formulated policies to ensure localization of all petroleum projects ….. Developing local content Developing people for better resource management

13.  The country's real GDP has grown by 6%  Oil revenues account for 75% of the total export.  Trade balance has turned from negative to positive.  Inflation has slowed down dramatically over the past few years from 110% to 4% Economic impacts Since Year 1999, Sudan’s economy has dramatically changed. For sustainable development, Oil revenues will be used to modernize the agricultural sector; and this is what the country is focusing on now