Sudan reports sharp oil revenue drop for November
January 12, 2009 (KHARTOUM) – Sudan’s oil revenue for November tumbled more than 40% from a month ago as demand for crude suffers the fallout from the global financial crisis.
Undersecretary of the Ministry of Finance and National Economy, Al-Tayib Abu Gnaya told the official news agency (SUNA) that total November oil revenue totaled $347.79 million compared to $608 in October.
Abu Gnaya said that the share of the Government of Southern Sudan (GoSS) in oil revenues is $150.74 million of which $101.53 million from exports and $49.21 million of the locally used oil.
The Sudanese official said that $21.2 million dollars were set aside for the Unity support fund.
He further stated that the oil producing states of Unity, the Upper Nile and South Kordofan were $3.1 million, $3.4 million and $2.7 million dollars respectively. The share of Abyei area in the oil revenues for November was $4.8 million dollars.
According to the national wealth sharing protocol, signed on 7 January 2004 by the government of the National Congress Party (NCP) and the Sudan People Liberation Movement (SPLM), at least 2% of the oil revenue is allocated to the oil-producing states in proportion to their output.
Separately Sudan announced that it will boost its oil production in 2009 from 450,000 bpd to 500,000 bpd.
“This will go up to about 500,000 barrels per day on average for the year, but by the end of the year we will reach 600,000 barrels per day” Minister of Energy and Mining Zubair al-Hasan said.
Oil exports represent 65% of revenue for Sudan and helped fuel its unprecedented economic growth despite US economic sanctions.
Khartoum has sought to downplay the effects of the credit crunch saying that US economic sanctions provided immunity to its economy.
However as the credit crisis unfolded it led investors to believe that oil demand will be severely curtailed in developed nations and possibly China and India. Crude oil is down more than 56 percent from its all-time peak of $147.27 reached July 11.
Sudan’s 2009 budget included tax hikes to make up for the sharp decline in oil revenue.
(ST)