Sudan issues Nile blend tender crude for June delivery

April 16, 2009 (TOKYO) — Sudan has issued a new tender to sell 2.6 million barrels of heavy sweet Nile Blend crude for June loading, traders told Reuters today.

Sudan’s offer came after already selling 800,000 barrel of the crude for May delivery at a discount of $5.00 a barrel to the Minas Indonesia Crude Price (ICP) to European trader Arcadia.

The Greater Nile project which produces this heavy sweet, high-quality, Nile Blend crude has been experiencing diminishing productivity lately from 325,000 barrels per day (bpd) to 200,000.

The tender closes on April 21, with bids valid until April 23.

Sudan State oil firm (Sudapet) has been facing difficulties finding rewarding bids for its tender forcing it to skip several spot sales since last year.

A global credit crisis severely curtailed demand for oil causing the prices to plunge from its record three digit levels reached last year.

Sudan’s 2009 budget has forecasted revenue based on $50 per barrel.

(ST)