China National Petroleum Corporation is close to winning a US$500m investment deal in Sudan, reported China Daily. CNPC and the government of Sudan will each spend US$150m on expanding throughput of their Khartoum refinery joint venture, which was established in 1997. This investment will more than double refining capacity, while the additional funds will be spent on constructing an oil pipeline.
Over the past six years, CNPC has acquired stakes in three oil fields in Sudan, including one that supplies the Khartoum refinery. Sudan is a politically sensitive country to invest in because of its long-standing civil war and its use in the past as a base by certain terrorist groups. For these reasons, analysts said that CNPC preferred not to make investments under its listed vehicle, PetroChina.