Risk Summary - Sudan - MAR 2014
POLITICAL RISK - No Assistance For South Sudan
Sudan will not take part in a joint effort to protect oil fields in South Sudan as fighting continues in the country. The neighbours were considering the possibility of jointly deploying forces in South Sudan's oilfields to repel any advances from rebel groups loyal to former vice president Riek Machar. Sudanese army spokesperson Colonel Khaled Sawarmi said that past differences between the countries prevent any such co-operation. Rebels seized control of some oil wells in Unity State on December 26, cutting production by around 20% to 200,000 barrels per day.
Our shor t-term political risk rating is 23.3.
ECONOMIC RISK - Indian Firm Wins Oil Blocks
ONGC Videsh (OVL), the international subsidiary of Indian state-run energy company Oil and Natural Gas Corporation (ONGC), has been nominated by the Sudanese government for the country's onshore Block 8 and offshore Block 15. The company will assess data from the two oil and gas blocks and acquire complete rights for the blocks only if it considers them feasible for investment. It is reported that Block 8 contains an oil discovery, while Block 15 comprises exploration acreage.
Our short-term economic rating is 25.8.
BUSINESS ENVIRONMENT RISK - Insurance System Adopted
Jordan-based ICT service provider Optimiza will provide its integrated insurance management system known as Aman to Sudan's Cooperative Insurance Company. Optimiza has already delivered the system to two other Sudanese insurance companies, Al Baraka and al-Salama, as it looks to expand its footprint across the Middle East and North Africa region. Several of Cooperatives products including general insurance, medical insurance and group life insurance, including accounting and re-insurance activities, will be processed by the Aman package, according to Alaa Herzalla, general manager for IP Solutions at Optimiza.
Our business environment rating is 26.5.