Reuters reported that Sudan’s oil production averaged 470,000 barrels per day in 2008 and 2009 below estimates of 500,000 barrels per day and plans to build a new refinery in Port Sudan have been shelved indefinitely.

Mr Al Zubeir Ahmed Al Hassan energy minister of Sudan said that Sudan was witnessing a gold rush with commercial concessions being awarded to new companies and small time mining exploding throughout Africa’s largest country. The average had been expected to reach 500,000 barrels per day but the actual is 470,000. Next year we are trying to be realistic in the pricing and production. He said that production may reach over 500,000 barrels per day in 2010 but official estimates were only 480,000 barrels per day. Problems included delays by contractors and in implementing new methods to reduce large amounts of water produced with both the sweet Nile Blend and the heavier Dar Blend.

Mr Hassan gave the first reply to anti corruption group Global Witness who said Sudan’s official crude figures were less that those published by China’s China National Petroleum Corporation. The group said that Sudan’s semi autonomous south, which is due 50% of revenues from oil fields in the south, could be owed more than USD 600 million in back payments.

Mr Hassan said that CNPC used figures from the wells while Sudan’s figures were for net production. CNPC’s figures included water and crude consumed during processing. Oil pressure at the wells was also higher than at Port Sudan. We think that they have to defend their figures to Global Witness because it is their side that had shown these figures.

He said that the company confirmed Sudan’s net production figures were correct. Under a 2005 north south peace deal, southerners have the right to vote on secession in 2011. But with most oil fields running along the north south border and refineries and pipelines in the north, there would have to be continued cooperation between the former foes even if the south separated. I still think that technically and financially the transport of oil from the south through Port Sudan is more economical and more viable than any other suggestion.

Mr Hassan said that plans for a new Port Sudan refinery were on hold indefinitely because of soaring costs and that Sudan was still in talks with CNPC to double the capacity of Khartoum’s 100,000 barrels per day refinery instead. And he denied reports that state company Sudapet would take a majority share in all northern oil concessions, saying the firm would only be improving capacity to become an operator in some blocks. He added that Sudan had found good shows of oil and gas reserves in a number of northern blocks including offshore in the Red Sea, but was looking for foreign partners to share the cost of further exploration.

(Sourced from Reuters)