Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Chinese Oil Venture to Invest $1Bln in a Sudanese Refinery

SHANGHAI, China -- China National Petroleum Corp. plans to invest $1 billion jointly with Sudan to create the African country's largest oil refinery, state press reported Monday.

The deal, expected to be signed within the coming months, will use $300 million to expand the Khartoum Refinery from 50,000 barrels per day to 90,000 bpd, the China Daily reported, citing Sudan's ambassador to China, Mirghani Mohamed Salih.

CNPC and Sudan first established the 50-50 joint venture in 1997.

The rest of the cash investment is earmarked for a 750 kilometer-long pipeline linking block six in southern Sudan's Kordofan oil field with the refinery and Port Sudan, where it will then connect with export markets.

CNPC has invested more in Sudan than in any other country. The company holds a 40 percent stake in the Greater Nile Consortium, which produces 330,000 bpd from three oil blocks and a 42 percent stake in two blocks in Malut, numbers three and seven, which are yet to come online. "With the three blocks coming on stream, the total production of the three oil fields that CNPC has interests in is expected to increase to 400,000 barrels of oil per day in 2004 and 500,000 in 2005," Salih said.

He added that Chinese oil companies investing in Sudan would enjoy preferential policies such as tax incentives.

Cooperative ventures in Sudan's oil sector have opened up investment opportunities in other sectors of the country such as infrastructure projects, the newspaper said.

China's largest oil producer has other oil interests in Africa. In early April, China National Oil and Gas Exploration and Development Corp., a unit of CPNC, secured a $350 million oil refinery deal in Algeria.