China’s CNPC Seeks to Exit Sudan Oil Venture, Citing War Damage

7 December 2025

A plume of smoke rises from the Khartoum Refinery, a China-Sudan joint venture, after it was hit by shelling on November 7, 2023.

December 7, 2025 (KHARTOUM) – The China National Petroleum Corporation (CNPC) has formally requested to end its oil operations in Sudan after three decades, stating that the country’s ongoing war has made production impossible and left key facilities in ruins.

In a letter dated November 19 and seen by Sudan Tribune, the Chinese state-owned giant requested the “early termination” of its contracts for the Block 6 oilfield in West Kordofan by December 31.

“It has become increasingly obvious that resumption of the production of Block 6 is simply unattainable until the armed conflicts cease,” CNPC President Wu Dawei wrote in the document.

The exit would mark the end of a pivotal partnership dating back to September 26, 1995, when CNPC signed a production-sharing agreement with the ministry to explore and develop the concession in the Balila region. The field is managed by Petro Energy, a joint venture between CNPC and Sudapet, the technical and commercial arm of Sudan’s energy ministry.

Operations in Block 6 have faced “grave challenges” since war erupted between the Sudanese army and the Rapid Support Forces in April 2023, the letter stated. CNPC evacuated its Khartoum headquarters immediately, establishing ad-hoc offices in Port Sudan and Beijing.

While Petro Energy initially maintained minimal output, an “imminent assault” on Balila Airport forced a complete production shutdown on October 30, 2023.

Since the shutdown, security has deteriorated further. The letter detailed how vandalism and theft have left western facilities “completely ruined” and eastern installations severely damaged. Attempts to resume work, including deploying staff and establishing new supply routes, failed as supply chains collapsed and critical spare parts became unobtainable.

Citing “zero revenue and ongoing expenditure,” CNPC described the situation as financially unsustainable. The company issued a force majeure notice in June 2025, backdated to the October 2023 shutdown.

CNPC has requested an urgent meeting with Sudanese officials in Juba, South Sudan, this month to finalize the termination of the Production Sharing Agreement and the Crude Oil Pipeline Agreement.

Despite the request, the company expressed hope that the move would not impact future cooperation “once the armed conflict ends and security conditions are restored.”