Sudan exported $317 million in crude oil exports in 2020.  In 2021, its oil fields produced 59,000 barrels per day (bpd). The Sudan Oil Refinery has the capacity to refine 90-95,000 bpd.  The Sudanese government also receives an in-kind royalty payment of 14,000 bpd from the government of South Sudan for oil pipeline transit rights to Port Sudan. 

Sudan’s oil sector suffers from years of underinvestment.  The sector’s productive capacity could be boosted with the introduction of improved technology, staff capacity building, and modernization of existing physical plants. Government-owned Sudapet and SudaGas are the entities controlling Sudan’s oil and gas sector, but the leadership at these companies has been replaced several times since 2019.  Additionally, the government’s lack of financial resources means it if often cannot pay contractors nor purchase new equipment. 

Government Incentives to Attract Investment in the Extractive Sector

The Ministry of Minerals’ current regulations provide for the following incentives to potential investors in this sector:

• Exploration License: 2+1 years terms (renewable)
• Mining License: 25-year term (renewable)
• Investors recover all capitalized exploration and development expenses
• Agreements to cover both the exploration exploitation periods
• Customs-free importation of all mining equipment and VAT retention
• Majority equity ownership
• Right to transfer ownership
• Favorable foreign exchange rates
• No withholding taxes
• Access to historical data
• Negotiable commercial terms

The government will charge 5-7 percent for royalties, 15 percent business profit taxes, and also property taxes (depending on location).