China pulls out from Sudan's unprofitable oil production
Port Sudan, Sudan (PANA) - China is ending its oil production activities in Sudan, ending over 30 years of cooperation, as a result of the on the going civil war that has made production unprofitable.
A pro-government website, the Sudanhorizon, on Monday reported that the Chinese government is in the process of terminating its oil contracts with the Government due to the suspension of production in Block 6, located in the Balila area of West Kordofan, since 2023, over 700 km south west of Khartoum.
It quoted the China National Petroleum Corporation (CNPC) as asking the Sudanese government to attend an urgent meeting in the capital of South Sudan, Juba, this month 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, the Sudanhorizon reported.
The Chinese company justified its decision 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 war —making spare parts and essential equipment unavailable.
CNPC said in the letter 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, 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 said: “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 the hope that its meeting with the Sudanese side would take place no later than 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 war 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 production since 1999.
CNPC remains a principal partner in several oil blocks in western and southern Sudan.
The Sudanese government is yet to reaction to the position of the CNPC.
-0- PANA MO/MA 8Dec2025
