North Sudan says oil production to reach 200,000 bpd within five years

December 2, 2010 (KHARTOUM) – The Sudanese government said this week that the North is expected to boost its production of oil to 200,000 barrels per day within 3-5 years in yet another sign that Khartoum is resigned to the inevitability of the South’s secession in the referendum slated for early next year.

The upcoming vote is part of a peace agreement that ended decades of civil war between the North and South and is widely expected to create the world’s newest state.

The separation of Sudan into two states will deny the North billions of dollars in revenue generating from vast oilfields in the south of the country.

Currently the North and the South are splitting the proceeds of crude in accordance with the Comprehensive Peace Agreement (CPA) signed in 2005.

About 75 per cent of Sudan’s proven reserves of 6.3bn barrels are in the south but the pipeline that carries the oil to export terminals and refineries runs through the north. The south needs Khartoum’s co-operation to sell its oil; the north needs revenues from its neighbor’s resources.

Also more than 90 percent of Sudan’s foreign currency revenues derive from oil as well as some 45 percent of its entire budget.

Azhari Abdel Gadir, head of exploration and production at the petroleum ministry, told Reuters on Wednesday that Sudan was adding 30,000 barrels per day of oil in CNPC-run Block 6 in Southern Kordofan state, which will remain part of the north if the south separates.

“With … what has been added today we are talking about 60,000 in total from this Block 6 in the north — add to that the portion from the north from Blocks 1, 2 and 4 which is around 45-50,000 bpd then you are talking about 100-110,000 bpd,” he said of current output from wells in the north.

He said the north would increase its production to 200,000 bpd within 3-5 years.

Abdel Gadir added the west of Block 6, which stretches into Darfur, had also seen proven discoveries and a number of rigs had been established.

“We expect this to come on stream within two-three years with no less than 40,000 bpd, mostly light crude with some heavy,” he said.

He added other new discoveries in the north included one in Block 7 in White Nile state, run by a consortium including Malaysia’s Petronas and CNPC.

“It’s light crude … it will take three of four months before we can know about the volume of oil there,” he said.

He added a “significant” discovery had been made in Block 7 in basement rock which he called a “big addition to the reserves” but could not immediately provide figures.

(ST)