Sudan sells November oil production at higher price

September 29, 2010 (KHARTOUM) – Sudan sold today its oil production for November to London based petroleum company at a higher price.

Sudapet, Sudan’s oil company sold its production for November of Nile Blend crude to the London based Arcadia Petroleum Limited.

The state company sold the monthly production of 600,000 barrel via tender at a discount of $3,45 a barrel to Minas Indonesia Crude Price. Last month Sudapet sold 600,000-barrel cargo to Chinaoil at around $4.20 a barrel below the formula.

The production of the Greater Nile project, where Nile Blend is produced, has fallen below 180,000 barrels per day (bpd), well off the field’s 325,000 bpd peak.

Sudan’s oil reserves are estimated at 6 billion barrels lie mainly in southern Sudan.

Sudan awarded four contracts to build 11 new rigs in the Blocks 3 and 7, located in Melut producing the heavy Dar Blend, Reuters reported on Wednesday

The Great Wall Drilling Company, a subsidiary of the Chinese CNPC, will build five rigs for $75.5 million. While ZPEB, a subsidiary of SINOPEC, will construct four rigs for $63.3. Dindir Petroleum, a joint Sudanese and Chinese venture, would erect one rig for $12.1 million and Sudanese oil services company Petroneed will build one for $15.6 million.

(ST)