Home | News    Tuesday 2 March 2010

Oil revenue in Sudan slashed by 60% in 2009: GoSS

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March 1, 2010 (KHARTOUM) – The proceeds from oil exports in Sudan has declined by a staggering 60% in 2009 with revenues measuring approximately $2.5 billion compared to $ 6.5 billion a year ago, according to a report compiled by the Government of South Sudan (GoSS).

The report said that oil prices reached an all time high of $132 in mid-2008 before dropping to $35 in the first quarter of 2009.

The global financial crisis that started in late 2008 has hit hard the economic activity throughout the world reducing demand for oil.

Last year, the International Monetary Fund (IMF) said that Sudan’s foreign exchange reserves were sunk across the years from $2 billion in mid-2008 to $300 million in March 2009, which covers only 2 weeks of imports.

The IMF said this was caused by the fall in oil prices, which is Sudan’s main export, among other things.

The world financial body criticized Sudan’s 2009 budget saying that its underlying assumptions proved wrong with forecasted oil price of $65 per barrel compared to updated projected figures of $36.8 for 2009 and $44.7 in 2010.

GoSS said that the federal government’s share of oil production in 2009 was 83.7 million barrels, while the share of partners was around 77.1 million barrels. Total revenue from oil of amounted about $ 1.5 billion while oil used in domestic refineries totaled $ 1.06.

The share of the federal government was approximately $ 1.4 billion while GoSS share was $ 1.06 billion.

In Abyei, the report said that oil revenues there reached about $215.3 million with $64.6 million going to the Federal Government, $67.2 million to GoSS, $4.1 million each to the states of South Kordofan, Warrap, tribes of Dinka Ngok and Misseriya and $66.8 million to Abyei fund.

Some 98 per cent of south Sudan’s non-aid income comes from oil, while the corresponding figure for the north is 60-70 per cent

About 75 per cent of Sudan’s proven reserves of 6.3bn barrels are in the south but the pipeline that carries the oil to export terminals and refineries runs through the north. The south needs Khartoum’s co-operation to sell its oil; the north needs revenues from its neighbor’s resources.

Last month a senior GoSS official said that the South may continue to share oil proceeds with the North for a limited time following secession to prevent an economic collapse there.

The separation of Sudan into a two states will deny the North billions of dollars in revenue generating from vast oilfields in the south of the country. Currently the North and the South are splitting the proceeds of crude in accordance with the Comprehensive Peace Agreement (CPA) signed in 2005.

(ST)

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  • 2 March 2010 08:31, by Nuerfudinka

    North sudan you start criying after all you have done to us, as the people of south,well enough is enough.when southern get their independency of course there would be no more oil sharing and then we will have a borders.

    NO UNITY WITH NORTH!!!!!

    repondre message

    • 2 March 2010 12:48, by jalabi

      Well, if it’s based on your wish then yes no oil for north after separation but if it’s based on reality and facts then yes north will get the cheap oil from south because the pipline runs through north and if we close that pipline simply the south will die from starvation, till you build a new pipline (if you could) through Kenya we will enjoy receiving the cheap oil from our neighbor south!!

      Jalabi (Abo Jalabia)

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    • 2 March 2010 13:02, by mohammed ali

      This report is not complete.It didn’t mentioned that the GOSS had already recieved $8.6 billions.Also it didn’t mentioned the new oil discoveries and their whereabout.

      6.3 reserves is nothing compared to the reserves of Saudi Arabia of 250 billions!Itis certain that our production will be 2 million barrels per day!

      As long as the pipe line passes throug the north, the north wll take it’s share and there is no point of talking about economic collapse here.Ths is misleading!

      repondre message

      • 2 March 2010 17:04, by Time1

        Mohammed

        it also did not mention about $15-20billion the north government recieved, were is that money? northerners also need services and they want accountability for government spending not only the south.

        repondre message

        • 2 March 2010 21:20, by mohammed ali

          Time
          I haven’t seen that 15-20 billions.The report was in the news paper.It is Yousif Ramdan,the GOSS member in the oil commission who reported this.

          The north could have recieved that amount,though it is impossible.Whatever,I am with accountability in the north, more than 100%.

          Though it is much less than our ambitions,there are real changes which nobody can dispute.That there is ,there is.But still the GDP growth is about 10%,which is very impressive!

          repondre message

  • 2 March 2010 14:22, by Kuany Dak

    Dear all, Goss report on declines of sale of oil is staggering and it is infact, oil around the global drop from $65 to $35 dollar a per barrel. Sudan oil is dropped as well,but who knows very well whether dominated government in the north is declaring actual figure of the dollar revenue recieved by the government of Sudan that according to the CPA, so this suspicion came whenever there is not transparency in the ministry of mining and energy, which oversee the oil exploration and its market sell in Sudan.

    Thank you,
    Kuany Dak

    repondre message

    • 2 March 2010 17:07, by Time1

      Dak

      North government estimate of undeclared oil revenues is almost the same as what the south recieved plus their "50%" shared. they are not telling the truth, otherwise where is the north getting all this money from.

      repondre message

  • 2 March 2010 14:45, by Padiet Deng Alony

    As for Melut county in which there is new wells connected as i can see it to the mian pipe line running from Palioch the Payam of Melut county and met with that of Bentiu some where.if oil revenue drop upto zero, i think for those oppurtunists who made 2% thiers not the public percent; particularly in Melut county will be a big blow with thier sycopants.mind you that petroluem is non-renewable resource and if it is misused it can finish like the way it is used.

    PT92/Remember Mazlum Batallion

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    • 2 March 2010 16:55, by Gatluak Latjor

      This is a serious warning to our infant goverment (GoSS) not to depend completely on oil. Other sources of revenue should be developed immediately before we plung into another problem of the same kind. flactuation of oil prices is something that will stay with the south for the times a head.

      repondre message

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