Sudan oil revenue continues dropping trend in December
February 15, 2009 (KHARTOUM) — Sudan’s oil revenue for December decreased by 21% compared to November in a sign that the 2009 budget may experience larger deficit than forecasted.
The Undersecretary of the Ministry of Finance and National Economy, Hafiz Atta Al-Mannan told the official news agency (SUNA) that total December oil revenue totaled $274.38.
November reported oil revenue was $347.79 million compared to $608 million in October as global financial crisis sent crude prices down more than $100 per barrel.
Al-Mannan said that the share of the Government of Southern Sudan (GoSS) in oil revenues is $118.87 million of which $77.78 million from exports and $41.09 million of the locally used oil.
The Sudanese official said that $16.83 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 $1.8 million, $3.5 million and $1.6 million dollars respectively. The share of Abyei area in the oil revenues for November was $3.79 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.
Sudan is heavily dependent on oil exports but as crude prices fell officials there called for shifted focus on other sectors including agriculture and industry.
Last week the deputy finance minister Al-Tayib Abu-Gnaya told Sudanese lawmakers that oil revenue has declined since January adding that no proceeds will be left over until April.
“We are now in February and not a single dollar has been received by treasury” Abu-Gnaya said.
“We barely covered [our expenses] for the first quarter in the budget. We still had to borrow from the banks” he added.
Sudan’s 2009 budget has forecasted revenue based on $50 per barrel sharply contrasting current market price of $36.
(ST)