Chinese Oil Companies Announce Halt of Operations in Sudan
China’s CNPC has informed its subsidiary PetroEnergy and Sudan’s Ministry of Energy and Mining that it is compelled to request an urgent meeting in Juba in December 2025 to discuss the early termination of its oil operations in Sudan.
In an official letter, the company expressed its deep gratitude to Sudan’s Ministry of Energy and Petroleum for its steadfast support over the years, noting that cooperation in Block 6 has long stood as a model for international oil collaboration.
The letter recalled that since the partnership began in 1995, notable achievements had been made, including the successful discovery of multiple oil fields such as Fula, Mouja, Jeek, Kay, FNE, Naha, Shoka, Hadida, and Safyan.
It also emphasized that CNPC had created numerous job opportunities and contributed meaningfully to local communities in Sudan, achievements made possible through mutual trust and support with the Sudanese government.
However, the company stated that since the outbreak of armed conflict on April 15, 2023, operations in Block 6 had faced severe challenges.
The headquarters in Khartoum were evacuated overnight, prompting the rapid establishment of alternative offices in Port Sudan and Beijing.
The Block 6 oilfield suffered repeated incidents of sabotage, theft, and blockades.
Minimal production continued until October 30, 2023, when an imminent attack on Balila Airport forced a complete shutdown. In the ensuing months, theft led to the destruction of western facilities and heavy damage to eastern ones. Security in the field deteriorated further, and supply chains collapsed—making essential spare parts and equipment unattainable.
Despite PetroEnergy’s attempts to restore production—creating a new security mechanism, securing alternative supply routes, and redeploying staff—efforts failed.
The company concluded that restarting production would be impossible until armed conflict ends.
As a result, PetroEnergy issued a force majeure notice in June 2025, retroactively setting October 29, 2023, as the starting date of force majeure. With no revenue and ongoing expenses, the situation became financially unsustainable under CNPC’s external investment policies.
Taking all factors into account, CNPC stated—with deep regret—that it had no choice but to call for a meeting in Juba in December 2025 to discuss the early termination of the Production Sharing Agreement (PSA) and the Crude Oil Pipeline Agreement (COPA) for Block 6.
The company’s initial position is that both agreements should end no later than December 31, 2025.
Once the Sudanese side agrees, CNPC will provide a detailed agenda and contact information.
The company affirmed its readiness to consider any proposals related to timing, venue, or agenda.
Finally, CNPC stressed that the proposed termination—driven solely by force majeure—should not affect future cooperation between Sudan and the Chinese National Petroleum Corporation once security conditions are restored and the conflict ends.
