Sudan’s estimation of crude oil
July 16, 2004 (LiquidAfrica) — As of January 2004, Sudan’s estimated proven reserves of crude oil stood at 563 million barrels, more than twice the 262 million barrels estimated in 2001.
As of June 2004, crude oil production was averaging about 345,000 barrels per day (bbl/d), up from 270,000 bbl/d during 2003. Crude oil production has been rising steadily since the completion of a major export pipeline in July 1999 and is expected by Energy Minister Awad al-Jaz to surpass 500,000 bbl/d by the end of 2005.
It is possible that Sudanese production could reach 750,000 bbl/d by the end of 2006 if planned production increases at new and existing fields progress as planned.
In August 2001, in recognition of Sudan’s growing significance as an oil exporter, OPEC granted the country observer status at OPEC meetings.Petroleum exploration in Sudan began in the early 1960s. The activity was originally concentrated offshore in the Red Sea.
The only significant offshore discovery was Chevron’s Suakin gas discovery in 1976. Chevron’s exploration in the 1960s and 1970s led to several oil finds in southern Sudan near the towns of Bentiu, Malakal and Muglad.
Chevron abandoned its concessions in Sudan in 1985, due to their location in an area where fighting was taking place between government and rebel forces. France’s Total also suspended its onshore exploration activities, but retained the rights to its concessions.
The Sudanese government sub-divided Chevron’s concessions into smaller exploration blocks, and Canadian independent Arakis Energy (Arakis) acquired the portion of Chevron’s concession north of the town of Bentiu in 1993.
In June 2004, Petrodar, a consortium made up of the China National Petroleum Company (41%), Petronas (40%), Sudapet (8%), Gulf Oil Petroleum (6%), and the Al-Thani Corporation (5%), which was granted a production agreement by the Sudanese government in the Melut Basin in November 2000, awarded a $239 million contract to Ranhill International of Malaysia and Petroneeds Services International of Sudan for development work on blocks 3 and 7. The blocks cover an area 44,700 square miles in size, and contain the Adar Yeil field, which produces 5,000 bbl/d.
Also in June 2004, Petrodar two other companies (Nam Fatt of Malaysia and Bentinin of Italy) to build pumping stations for Melut. Finally, China’s Petroleum Engineering and Construction Group (CPECC) has been chosen to build a $215 million oil terminal to service blocks 3 and 7.
In June 2000, Sudanese officials announced plans to begin oil exploration in northwest Sudan, the Blue Nile Basin in southeastern Sudan, and the Red Sea area in eastern Sudan.
Oil exploration in Sudan previously was limited largely to the central and south-central regions, which, according to Khartoum officials, represent only 15% of national oil reserves.
Sudanese Energy Ministry representatives place estimated total reserves in the country at 3 billion barrels and estimated proven reserves at 700 million barrels. Government spokesmen said that unnamed Japanese, European and Middle East companies had expressed interest in the new oil concessions.
In early June 2004, Sudan’s Energy Minister announced that oil exploration had begun for the first time in northern Sudan, on Block 9 in the Jazira region north of Khartoum.Development of Sudan’s oil resources has been highly controversial.
Numerous international human rights organizations have accused the Sudanese government of financing wide-scale human rights abuses with oil revenues, including the mass displacement of civilians living near the oil fields.
The SPLA has declared that it considers oil installations a “legitimate military target,” as oil development has provided the Sudanese government the financial resources to expand its war effort.
The SPLA says it destroyed the main oil well on the Heglig oil field in September 2002. In November 2001, southern rebels claimed to have ambushed an army convoy traveling near GNPOC facilities, and stated that such attacks would continue until “oil exploration, exploitation and development come to a halt.”
In August 2001, an attempt by rebels to blow up Sudan’s oil export pipeline was thwarted, but rebels claimed to have killed 42 government soldiers in an attack earlier in the month, and also to have inflicted “extensive damage” to oil facilities at Heglig. The government and a representative of Talisman Energy both denied the latter claim