Sudan Dar oil terminal open, exports 200,000 bpd

June 10, 2007 (KUALA LUMPUR) — Sudan’s exports of Dar Blend crude are running at full throttle of 200,000 barrels per day (bpd) after opening a new export terminal, Sudan Energy and Mining Minister Awad Ahmed al-Jaz told Reuters on Sunday.

“The new terminal is up and running, and exports are at 200,000 barrels per day (bpd),” he said. He also repeated that total Sudan production was running at 500,000 bpd.

He said that Sudan expected to sell its share of the Dar Blend production via tenders held every three months. Swiss-based oil trader Vitol won an initial contract in 2005 to market the acidic grade, which trades at a large discount to Brent.

Jaz said that talks over building a new refinery with Malaysia’s state oil firm Petronas were progressing.

“Discussions are going on. We have not finalised it yet,” he said, adding that the refinery would have a capacity of 175,000 bpd, larger than the 150,000 bpd estimate given on Friday by Petronas CEO Hassan Marican.

When the deal was first agreed almost two years ago, the plant was planned at 100,000 bpd with a price tag of $1 billion. Jaz said that the plant would now cost more amid industry-wide cost inflation, but could not give a figure.

Dar Blend exports have been constrained since production began over a year ago as they have been diverted to Sudan’s older terminal, which already ships about 300,000 bpd of Nile Blend.

In March, as traders waited for news of when the delayed terminal would ready, port sources said the country was only exporting about 160,000 bpd of Dar Blend. Sources said the delay was caused by slow progress on a new pipeline.

The Dar Blend field is operated by Petrodar, a consortium comprising China National Petroleum Corp. (CNPC) with a 41 percent stake, Malaysia’s Petronas [PETR.UL] with 40 percent, and state oil firm Sudapet with 8 percent.

China Petroleum & Chemical Corp. (Sinopec) holds 6 percent of Petrodar, while Al Thani Corp., a private company incorporated in the United Arab Emirates, owns 5 percent.

(Reuters)