Sudanese State Minister for Oil, Mahmoud Abdel-Rahman, and the Chinese Envoy for Arab Affairs Ambassador, Lee Ching, discussed the renewal of the production sharing agreement (PSA) for Block B2 oil field in Heglig, located in the Sudan’s southern regions, Sudan Tribune reported.

Sudan approached China about revising the terms of the PSA to increase production at the oil field. Abdel-Rahman stated that the oil produced from the block does not surpass 20% of the reserves, adding that the ministry is looking to resolve the unsettled issues between the two countries as the oil sector represents the strategic depth of the relationship between Sudan and China, according to Ecofin Agency.

Block 2B is the most productive field in Heglig. Chinese companies started operating in Sudan in 1996 and control 75% of Sudan’s oil sector. In line with the PSA, Chinese companies were granted exploration and production activities and tolerate the financial risks.