Sudan resumes oil production from Heglig fields

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May 2, 2012 (KHARTOUM)- Sudan announced Wednesday the resumption of
the production of oil fields in Heglig which were stopped after its
occupation by the South Sudanese army for ten days last April.

JPEG - 48.9 kb
Minister of Petroleum Awad Ahmed Al-Jaz opens an oil valve during a
ceremony as oil operations at Heglig oilfield resume in Heglig May 2,
2012. (Reuters)

South Sudan army, SPLA, captured Higleg from 10 to 20 April, before to
pull out after fierce fighting with the Sudanese army. Khartoum
accused Juba of deliberately sabotaging oil facilities but the later
said it was destroyed by the bombing of Sudanese warplanes.

The resumption of oil production was announced in Khartoum by the
Sudanese petroleum minister, Awad Ahmed al-Jaz, after his return from
the oil fields; dressed in full military regalia and flanked by dozens
of staff from his ministry.

"We have resumed oil pumping from Higleg oil fields, and I have opened
the valves myself after we have completed all the work within one
week," al-Jaz told reporters proudly in Khartoum.

"Many have challenged us that at least it needs six months before
production returns, but we worked 24 hours a day and we have succeeded
in repairing the power stations, pipelines, and the central processing
units," he further said.

The minister said the oil fields started pumping oil at 10 p.m. (local
time) on Tuesday.

Sudan and South Sudan have failed to reach an agreement over
post-independence issues. Their dispute over oil transportation fees
led the South to shut down its production after accusing Khartoum of
stealing oil.

Sudan have since opened a tender for oil companies to start
exploration in 6 new sites in Sudan. According to the minister over 70
international companies have expressed their desire to invest in
Sudan.

Heglig’s oil is operated by a consortium of Chinese, Malaysia, Indian
and Sudanese companies called Greater Nile Petroleum Operating Co
(GNPOC). The Chinese operator applied for many of these new fields.

Heglig produces some 55.000 barrels per day, about the half of Sudan’s
oil production since the independence of South Sudan in July 2011.

The minister said his country plans to augment output of Heglig’s oil
but he did not disclose what the damaged oil installations are
producing now.

Jaz said they have only managed to fix what was necessary to resume
oil pumping. But experts say that Sudan at least needs four to six
months before oil production returns to normal.

"We have fixed what was necessary for the resumption of oil
production. But at the same time the work is still going on," the
minister said. Adding, "now if you ask the engineers here they will
tell you that Higleg’s oil has reached Khartoum refinery," he
stressed.

Sudanese army last Saturday detained, a Briton, a Norwegian, South
African and a South Sudanese in Higleg. All they are accused of
helping South Sudan to destroy the oilfields during the ten days of
occupation.

At his press conference today, al-Jaz stressed that the four men have
admitted during the interrogation that they helped the SPLA to set a
blaze on the oil fields.

Jaz accused also vowed to sue South Sudan for compensation, saying
they are assessing the loses now.

He pledged to provide the details of the damages caused by the South
Sudanese army to the international and regional institutions.

(ST)

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