Sudan’s oil output to reach 490K bpd by 2012
June 5, 2011 (KHARTOUM) – Sudan’s oil output will reach 490,000 barrels per day (bpd) by the year 2012, Sudan’s State Minister for Oil Ali Ahmed Osman told Reuters on Sunday.
Currently Sudan produces between 470,000 to 480,000 bpd.
Osman expressed optimism about prospects for sustained increases in the price of the crude that would benefit Sudan. He cited factors such as the movement towards a stabilized global economy as well as political upheaval across the oil producing regions of North Africa and the Middle East.
“The global economy is more stable and prices should go up by the end of the year,” Osman said ahead of an industry event in Malaysia.
“The tension in the region will also have an impact on prices.”
Sudan was selling its Nile Blend crude at about $110 to $120 per barrel, he said. The crude has hit its strongest level in two years on Japanese demand for the oil for burning to generate power after the devastating earthquake and tsunami in March crippled nuclear plants.
North Sudan, which currently depends on oil revenues for some 45% of its budget, is scrambling to find other sources of income to make up for the loss of billions of dollars as a result of south Sudan secession that will become official next month.
Sudanese officials have said that North Sudan’s output of oil is expected to reach 195,000 bpd by the end of next year.
The north will still be able to gain profits from using its pipeline infrastructure and refineries to export South Sudan’s oil.
This week Sudanese President Omer Hassan al-Bashir told his party that measures will have to be undertaken to weather the impact of losing the South’s oil.
“The separation of south Sudan will have an economic impact on us. We’re going to lose our share of south Sudan’s oil,” Bashir said.
“So we are going to have a three-year programme, under which we will reduce the government’s expenses and create a new income for the government… by extending the taxation umbrella,” he added.
The North and South have been splitting the oil revenue in accordance with the 2005 Comprehensive Peace Agreement (CPA).
There has been conflicting signs on how much the South is willing to offer the North from its oil exports. Most recently Southern officials seemed to rule out any possibility of oil sharing after independence.
(ST)
Emmanuel Ajang Solomon
Sudan’s oil output to reach 490K bpd by 2012
Congratulation NCP.
Why are U making all difficulties to South Sudan since the difference is very little like U said the total out per a day is 500,000 Bpd and your own is 490,000 Bpd is only 10 drums which I can see will not even pay the salaries of SGT. or RSM.
Plus what you will get for hiring your pipes,I am sure U will have more than the South but why R U making noise all this time along?See the what is going on in Kaduguli, Abyei Umdorian, and south in General is U maknig it what do U think will happen after all this?
No, No, No, Good relation with the north unless to bring in the Government of the people to be in friendship with Us.
Time is gong against all of Us but the rest are going to be history.
Paul Ongee
Sudan’s oil output to reach 490K bpd by 2012
Emmanual Ajang Solomon,
You have said it all, bro. Khartoum is good at lying to its people, friends, even international community. Almost every Sudanese knows that the 490 bpd will be the output from Southern Sudan oil fields after July 9, 2011 but Not from Northern oil fields which Ali Ahmed Osman is shamelessly trying to tell us. He doesn’t want to paint a grim picture of economic outlook after declaration of South Sudan’s independence while his NCP-led government is militarily eyeing the Southern oil fields.
Since early this year, the prices of essential commodities in the market here keep rising beyond consumers’ financial capacity. Former Governor of CBS keeps reminding Sudanese that austerity measures should be taken to avoid post-secession economic shocks. This kind of lying would not help the government avoid street demonstrations.
Feeling the impact of South Sudan secession on the Northern economy doesn’t require one to be a rocket scientist. Telling the truth is better than lying. However, this is the characteristic of Khartoum of the past, present and probably of the future so long as Northern Sudan remains under the despotic tyranny.
Paul Ongee
Khartoum Watch