After 30 Years China Pulls Out of Sudan
Beijing – Sudanhorizon
The Chinese government announced that it is in the process of terminating its oil contracts with the Government of Sudan due to the suspension of production in Block (6), located in the Balila area of West Kordofan, since 2023.
The China National Petroleum Corporation (CNPC) called on the Sudanese government to attend an urgent meeting in the capital of South Sudan, Juba, during the current month of December to discuss the early termination of its oil operations in the country.
The Chinese government sent a letter to its Sudanese counterpart through its Sudan-based subsidiary, PetroEnergy, of which Sudanhorizon obtained a copy.
The Chinese company justified its decision to halt operations in Sudan by citing the continuous deterioration of security in the oilfield, which has been affected by numerous acts of sabotage, theft, and the collapse of supply chains during the conflict—making spare parts and essential equipment unavailable.
The China National Petroleum Corporation revealed that it had made major efforts to resume production after the attack on Balila Airport in October 2023, including establishing a new security mechanism, providing alternative supply routes for essential materials, and redeploying staff to the eastern field.
However, it explained that these efforts did not bear fruit and that it remains unable to resume production in Block 6 until armed conflicts cease.
The company indicated its inability to meet its contractual obligations under the Production Sharing Agreement for Block 6.
It added that “with revenues nonexistent and only expenses accumulating, the current situation is financially unsustainable and cannot continue in light of CNPC’s internal policies for overseas investment.”
The company expressed its hope that its meeting with the Sudanese side would take place no later than the end of this month, 31 December 2025.
It regretted that the early termination of the Production Sharing Agreement had become an unavoidable step due to force majeure circumstances.
The company also affirmed its willingness to return to operate in Sudan once the armed conflict ends and security conditions are restored.
China is Sudan’s primary strategic partner in the oil and gas sector, having played a major role in oil extraction in the country since 1999.
The China National Petroleum Corporation remains a principal partner in several oil blocks in western and southern Sudan.
Shortlink: https://sudanhorizon.com/?p=9358