Sudan’s new oilfield to produce 60,000bpd by year-end

June 28, 2006 (SINGAPORE) — Sudan’s newest oilfield began production this week and is expected to ramp up 60,000 barrels per day (bpd) of heavy sweet crude by the end of this year, equity holders in the field said on Wednesday.

Oil started flowing on Monday at the Thar Jath field, which is in Block 5A in southern Sudan.

“Production is expected to be about 60,000 bpd by the end of this year, with provisions to increase the capacity to 150,000 bpd,” a Petronas spokesman said in an email.

Malaysian state oil firm Petronas holds a 67.875 percent stake in Block 5A, India’s Oil and Natural Gas Corp. (ONGC) has a 24.125 percent interest and Sudan’s state-owned Sudapet has the remaining 8 percent.

Details of the new crude were not available. But a source at ONGC said earlier this week the new crude was similar in quality to Nile Blend, Sudan’s main export grade, which has found a ready market in China and Japan.

Sudan produces around 330,000 bpd of Nile Blend crude, a heavy grade with a low sulphur-content, which can be burnt by utilities in Japan and has a high fuel oil yield.

The new crude will be transported via pipeline to Port Sudan, with first commercial liftings expected in August, the Petronas spokesman said.

The start-up of the field comes as a relief to Sudan, whose second major crude stream, Dar Blend that could produce up to 200,000 bpd once fully on stream, has been delayed by a year due to technical problems.

(Reuters)