Sudan’s oil output to reach 490K bpd by 2012
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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)
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