| ||CNPC's oil and gas businesses in Sudan mainly include four upstream projects of Block 1/2/4, Block 3/7, Block 6 and Block 15, three downstream projects of Khartoum Refinery, Khartoum Petrochemical Co.,Ltd. and petrochemical trading, as well as crude pipelines in Block 1/2/4, Block 3/7 and Block 6.|
CNPC won the tender for Block 1/2/4 in March 1997 and jointly established GNPOC together with Petronas, SPC and Sudapet in June the same year. At present, CNPC has a 40% holding, and the shares of other three partners-Petronas, ONGC and Sudapet are 30%, 25% and 5% respectively.
Block 1/2/4 is located in Muglad Basin, adjacent to Block 6 in the northeast, covering an area of 48,388 square kilometers. A 10 Mt/a crude oil production capacity was built in 1999, thanks to comprehensive geological research and progressive exploration. In 2006, well Hamam South-1, allocated in Diffra area in Block 4, obtained a high-yield oil flow during formation testing.
In 2008, Block 1/2/4 maintained a steady oil production. Oil and gas show was observed in the first exploration well deployed to the south of Bahr al-Arab River in Block 4.
In 2009, testing of well C-1 at Azraq tectonic zone in Block 1/2/4 of Sudan obtained high output, which further confirmed the resource potential of AG formation in Azraq region.
In 2010, we made progress in progressive exploration in Block 1/2/4.
Block 3/7 is situated in Melut Basin in the east of Sudan, covering an area of 72,400 square kilometers. CNPC won the tender for Block 3/7 in November 2000 and currently holds a 41% stake. The shares of four other partners-Petronas, Sudapet, Sinopec and ENOC are 40%, 8%, 6% and 5% respectively.
Palogue oilfield was found in Block 3/7 in 2003, whose oil-bearing fault block maximum area exceeded 60 square kilometers. The maximum and average reservoir thickness reached 147.5 and 60 meters respectively. Oil in place in major reservoirs is proved to be more than 300 million tons.
The offshore terminal of the crude pipeline from the oilfield was completed and put into operation on June 9, 2007.
In 2008, by drilling new wells and horizontal wells and taking stimulation measures, the field's daily output was increased.
In 2010, we made progress in progressive exploration in Block 3/7 and the Phase-2 of Block 3/7 was put into operation.
Block 6 is located in the northwest of Muglad Basin. CNPC acquired the development rights of the block in September 1995, and now owns 95% equity of the block and is also the operator, while Sudapet holding the remaining 5%.
Fula Oilfield was found in this block in 2001 and was put into production in March 2004.
In 2008, on top of finding additional reserves in the west Fula steep slope belt of Block 6, new reservoirs were discovered in AG Formation at the east gentle slope belt. This opened a new series of strata for further exploration, demonstrating oil potential in multiple strata of the block.
In 2010, the capacity building Phase-3 of Block 6 were put into operation.Block 15
On August 30, 2005, CNPC, Petronas, Nigerian Express, Sudapet and the Hi-tech Group signed a production sharing contract with the Sudanese Government to explore and develop oil and gas in Sudan's Block 15. Located in northeastern Sudan, Block 15 covers an area of 24,377 square kilometers, most of which is located in the Red Sea.
Currently, CNPC has a 35% stake. The shares of other partners-Petronas, Sudapet, Nigerian Express and HiTech are 35%, 15%, 10% and 5% respectively.
In 2010, we completed drilling of two offshore exploration wells in Block 15, providing us with experience in offshore risk exploration.Khartoum Refinery
Situated 70 kilometers north of Khartoum, the Khartoum Refinery is the first modern refinery with the world's first delayed coking unit for high-acid and high-calcium crude oil.
Khartoum Refinery was jointly invested in and constructed by CNPC and the Sudanese Ministry of Energy and Mining. CNPC has a 50% holding. The refinery became operational on May 16, 2000 and currently has an annual processing capacity of 5 million tons.
In 2009, the environmental protection project for phase-Ⅱexpansion of Khartoum Refinery started construction of a wastewater stripper, which is capable of treating 1 million metric tons of wastewater every year, and will effectively reduce air pollution and improve air quality in the surrounding regions.
In 2010, the acidulous water stripping work for environmental protection of Phase-2 expansion of Khartoum Refinery was successfully started and achieved remarkable results in comprehensive wastewater treatment.
| ||CNPC provides oilfiled services in Sudan, including geophysical prospecting, well drilling, logging and formation testing, as well as engineering and construction. By far CNPC has offered seismic data acquisition and processing services for WNPOC, APCO and RSPOC, and undertaken logging and testing projects for WNPOC, APCO and Sudapak.|
In 2008, CNPC won well logging, mud logging and testing contracts for Blocks 1/2/4, 3/7 and 6, and provided APR-PCP (Annulus Pressure Responsive – Progressive Cavity Pump) testing service for WNPOC. New progress was also made in a low-resistance reservoir research project at Neem Oilfield of Sudan's Block 1/2/4. The 5Mt/a (Phase II) production capacity upgrade proceeded as planned at Block 3/7. A gathering and transportation station was tested and put in use at Gumry Oilfield. In addition, we won a contract to construct an aromatic extraction unit for Sudan’s Ministry of Energy and Mines.
CNPC has completed engineering and construction of a range of major projects, including
Oilfield surface engineering of Block 1/24, Block 3/7 and Block 6
Construction of Khartoum Refinery
Construction of Khartoum Petrochemical Plant
Crude pipeline between Block 6 and Khartoum Refinery
Offshore terminal and pipeline between from Block 3/7 to Port Sudan
Crude pipeline from Block 1/2/4 to Port Sudan
Construction of the pipeline from Heglig Field of Blcok 1/2/4 to Port Sudan was commenced in May 1998 and completed in June 1999. During the 11 months of construction, engineering troubles brought about by tropical rain forest, desert, mountains and marsh were tackled.
CNPC has contracted the phase I construction and phase II upgrade of Khartoum Refinery and designed and built the world's first delayed coking unit for high-acid and high-calcium crude oil.The refinery became operational on May 16, 2000 and currently has an annual processing capacity of 5 million tons.
| ||Wastewater Treatment in Heglig Oilfield|
In the Heglig Oilfield of Block 1/2/4, we have spent USD 30 million in building the world's largest oilfield wastewater treatment system by using living beings.
The system covers an area of 5.28 square kilometers and can treat 250,000 barrels of wastewater every day by using biological degeneration technology. The system has got ISO14001 certification, with all the treated wastewater meeting or exceeding international discharge standards. By using this pollution-free wastewater treatment system, a harmonious relationship between energy exploitation and environmental protection in this region has been guaranteed.
Improving Local Medical Conditions
Join forces with the Sudanese government to help healthcare in the rural areas.
Provide financial support to build the KRC Friendship Hospital, Fula Friendship Hospital, Heglig Hospital and Palouge Friendship Hospital.
Donate medical equipments, including ambulances and surgical operation rooms, to Malual Hospital.
Offer financial assistance to Ibn Sina Hospital.
Abu Ushar Friendship Hospital Put to Use
In July 2011, the Sino-Sudan Abu Ushar Friendship Hospital was completed in Abu Ushar – a town in Al Jazirah, Sudan. This is the first Africa assistance initiative between CNPC and a Chinese NGO – China Foundation for Poverty Alleviation (CFPA). In November 2010, CNPC Nile donated USD 600,000 to CFPA as financial aid to the Abu Ushar Friendship Hospital – one of the China-funded demonstration projects jointly managed by CFPA and BTO Sudan to improve the maternal and child health system in Sudan.
Currently in operation, the Abu Ushar Hospital specializes in maternal and child health services while offering expertise in a variety of medical services. This 180-bed facility has 22 departments, including obstetrics and gynecology, surgery, orthopedics, internal medicine, ophthalmology and pediatric etc. In 2011, the hospital treated 39,459 patients, including 5,073 surgeries. A report from an assessment team organized by CFPA and BTO Sudan shows that the patients and their families are satisfied with the therapeutic effect and clean medical environment in the hospital. The project is granted the Special Contribution Award for International Outreach Programs and listed by the Ministry of Foreign Affairs of China as one of the Best Public Diplomacy Programs in 2011.
Cooperation with China Foundation for Poverty Alleviation
CNPC established public welfare funds for Africa under China Foundation for Poverty Alleviation to facilitate community and social development in Africa.
In November 2010, CNPC Nile Company donated USD 600,000 to this NGO to fund the building of the Sino-Sudan Abu Ushar Friendship Hospital, the first-phase of the Demonstration Projects for the Sudanese Maternal and Child Healthcare System. The Abu Ushar Friendship Hospital, a general hospital which also specializes in maternal and pediatric healthcare, is located in Jonglei State covering an area of 2,000 square meters. Completion of this hospital will significantly reduce the local maternal and infant mortality rates, and improve medical services in rural communities in Jonglei State.
Solve Drinking Water Problem
CNPC's operation companies in Block 1/2/4, Block 3/7 and Block 6 have dug over 170 water wells for local residents to alleviate their shortage of drinking water.
Khartoum Refinery laid an additional pipeline at the water purification plant near the Nile to supply clean drinking water to local residents, who had once taken drinking water directly from the Nile.
Support for Local Education and Public Welfare
Donate USD 700,000 to the Sudanese University of Juba, for the purchase of teaching aids and books. The money is also used to finance outstanding teachers and students to go to China on short-term academic exchanges and for training.
Offer the Ministry of Social Security of Khartoum State USD 1 million to improve the living and medical facilities of orphanages, senior citizen's homes and public medical institutions.
Offer financial assistance to Al Rashad and Mygoma Center orphanages, Al Sagana Rest Home, and Al Salamapi Workshop.
Block 1/2/4 project supported the construction of 22 schools which have provided education to 65,000 people.
CNPC's BGP invested USD 500,000 to found a geophysical research & development center in cooperation with Khartoum University.
CNPC signed an agreement with a Sudanese charity to help poor mothers in Sudan on November 19, 2009. Under the agreement, CNPC will donate USD 1 million or equal worth in Sudanese legal currency, on a yearly basis, to the charity for three consecutive years. The money will be used for poverty alleviation, education, and improved living conditions. At least 50% of the fund will be used for charity work in Darfur. By the end of 2009, the first sum of money donated by CNPC had helped 500 couples marry and lead a happy life.
The four-year project of the Public Welfare Fund Agreement (signed with the Ministry of Social Development of Khartoum State in January 2007) was officially launched in 2010, mainly targeting disadvantaged groups such as orphans, deaf-mute children, sick women, blind people and those lacking employment-related skills.
Finance the construction of the Merowe China-Sudan Friendship Bridge to connect Merowe city and Kareima city on the Nile banks.
Donate USD 10 million to the government of Sudan to building the Malual Bridge. The completion of this bridge will greatly promote local economic development and improve the traffic in this region.
Provide support to the local government to build an airport and highways.
Petroleum talents training
CNPC attaches great importance to creating employment and has hired over 4,000 Sudanese employees and more than 7,000 local day laborers. Since 2008, CNPC has been awarded 10 outstanding employees and 60 excellent employees for Outstanding Sudanese CNPC Employees every year.
CNPC signed an agreement on training local petroleum talents with the Sudanese Government, and donated USD 900,000.
CNPC sends some local employees to China and other countries to receive training in order to improve their skills.
A number of Sudanese students have been selected to study in colleges and universities in Beijing.
| ||Nov. 17, 2009 CNPC and Sudan's Ministery of Energy & Mining sign an MOU on the second phase expansion of Khartoum Refinery and an MOU on further strengthening cooperation in upstream projects in Sudan. |
Feb. 2, 2007 President Hu Jintao visits Khartoum Refinery in Sudan, a CNPC joint venture
Aug. 30, 2006 The first shipment of oil from Block 3/7 was exported.
Aug. 30, 2005 CNPC, Petronas, Nigerian Express, Sudapet and the Hi-tech Group signed a production sharing contract with the Sudanese Government to explore and develop oil and gas in Sudan's Block 15.
Mar. 15, 2004 The crude pipeline between Fula Oilfield in Block 6 and Khartoum Refinery went into production.
Jul. 31, 2003 CNPC discovered Palogue Oilfield in Block 3/7.
Nov. 11, 2000 CNPC won the bid for exploration and development of Block 3/7.
Aug. 30, 1999 An annual production capacity of 10 million metric tons of oil for Block 1/2/4 was achieved, and the first shipment of oil from this block was exported.
Mar. 1997 CNPC won the tender for Block 1/2/4.
Sept. 1995 CNPC acquired Block 6.