Sudan says oil companies refusing to repair faulty wells amid oil slump

September 22, 2015 (KHARTOUM) – The Sudanese government disclosed on Tuesday that it has been unable to raise its production of oil due to the global slide in crude prices.

Sudan has been pushing hard to increase its oil production particularly after the secession of South Sudan in 2011 taking with it about 75% of the country’s oil reserves.

The minister of oil Mohammed Zayed said that oil companies are reluctant to fix damaged wells in light of the dramatic decrease in world oil prices and the need for injecting more capital for repairment.

He said that the steep decline in oil prices from $110 a barrel last year to $47 has disrupted the economies of production for these companies.

Zayed declared that the government reached series of understandings with these companies on measures that would help raise oil production such as reducing production costs leading to improved profit margins.

“You can undertake simple processes to boost oil production by 10,000 barrels per day,” he said.

Last May Sudan said it hoped to increase the daily oil production from 120,000 barrels per day to 150,000.

(ST)