Sudan makes largest offer of Nile blend oil for March delivery
January 20, 2009 (TOKYO) — Sudan has issued the largest tender to date for Nile Blend crude, traders told Reuters today.
It is not clear why Sudan has put such a large quantity of crude on the market given the steep drop in oil prices.
Sudan’s state oil firm (Sudapet) has faced trouble finding acceptable bids which forced to cancel its last Nile Blend tender, for a January-loading cargo. Furthermore it skipped spot sales for February.
One trader told Reuters that Sudapet might have added the 500,000 barrels from the previous tender to the March tender, resulting in the sharp rise in volumes.
The Greater Nile project which produces this heavy sweet, high-quality, Nile Blend crude has experienced diminishing productivity lately from 325,000 barrels per day (bpd) to 200,000.
However with investment returns in the Greater Nile project almost recovered, the Sudanese government will get a bigger slice of the Nile Blend crude production, while other equity holders will get less, according to the shareholding agreement, a source familiar with the matter said.
Equity holders in the Greater Nile project led by China National Petroleum Corp (CNPC) with a 40 percent stake, include India’s Oil and Natural Gas Corp (25 percent) and Malaysia’s state oil company Petronas (30 percent). Sudapet owns 5 percent.
(ST)
Malual Jongbai
Sudan makes largest offer of Nile blend oil for March delivery
Where does this money go?
Economies should be aware of the recently or current world market recession to maintain our economic in a good shape. Sudan economic is chiefly raising its 75% revenue from oil and making less profit from the barrell produced would means the economic is going down for our country.
On the other hand, the revenue should be invested or use wisely so that hospital, road and education can be improved. I guess none of this has been a chieved in the South since the signing of the CPA although States are hindering with development. The government should use its revenue in accordance to meet social needs& development and avoid any unnecessary political donation to other nation which are better off interms of development.
By PM Malual