Legal Framework

• The Petroleum Resources Act 1998 and the Petroleum Regulations of 1973 regulate exploration and production of oil and / or gas  accumulations  in  Sudan  both  onshore and offshore.

• Major amendments have been introduced  in  the  petroleum  resource  Act which  gives  the  Minister  of  Energy  and Mining,  with  the  approval  of  the  Board  of Petroleum  Affairs,  the  right  to  conclude agreements  for  the  exploration  and production of oil and / or gas in the Sudan.

• All the Agreements signed by the Sudan Government  with  the  international  oil companies  are  Exploration and Production Sharing  Agreements  (EPSA).  The  EPSA embodies  the  entire  rights  and  obligations
of the Government and the Oil Company.

• The  Oil  Company,  under  the  EPSA, recovers its operations cost from an agreed and  negotiable  percentage  of  the  total production.  The  profit  oil  is  divided between  the  Government  and  the  Oil Company according to certain percentage to be agreed upon by both parties.

• Equipment of the Oil Company used in petroleum  operations  are  exempted  from custom duties.

• The oil discovered and exported by the Oil Company is exempted from any export  rights  are provided  for  in  the EPSA  and  the  Oil  Company  is  given  the right to sell its share of oil and / or gas and
keep the proceeds outside Sudan.