Oil & Gas

13 Sep 2021

Sudan Expects to Reach Oil Products Deal with Saudi Aramco

13 Sep 2021  by Reuters   

Sudan expects to reach a long-term deal with Saudi Aramco for the supply of oil derivatives at preferential prices, and shipments of some products by the Saudi state oil producer have already begun, the Sudanese energy ministry said on Sunday.

A delegation of Saudi officials and businesses is in Sudan for two days of talks on potential investments in sectors including agriculture, energy, mining and technology.

Energy specialists from the two countries signed a memorandum of understanding for energy in general, and the targeted agreement with Aramco would be intended at securing a "stable and sustainable" supply of oil derivatives for Sudan, the ministry said in a statement.

The agreement was discussed against the backdrop of Sudan's recent liberalisation of its fuel market, the ministry said, adding that Saudi firm ACWA Power was eyeing opportunities to invest in renewable energy.

Projects to produce gum arabic, farming of crops and livestock, and infrastructure construction were also discussed at the talks, Sudan's state news agency SUNA reported.

Sudan's transitional government is trying to pull the country out of a deep economic crisis that triggered the protests that toppled former President Omar al-Bashir in 2019 and has continued after his ouster.

The crisis has seen severe shortages of fuel and other basic commodities, though fuel shortages have eased recently.

Military and civilian groups sharing power have strengthened ties with Saudi Arabia and its regional allies, while rebuilding relations with the West and carrying out economic reforms monitored by the International Monetary Fund.

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