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Sudan hopes to increase oil production by 35 percent in 2011, as European and Arab investors show more interest in exploring for crude in Africa’s biggest country. Energy minister Lual Deng said part of the targeted increase in oil production would come from Block 6 run by China National Petroleum Corp. in the central state of Kordofan.
Sudanese oil company, Sudapet sold two cargoes of September-loading Dar Blend crude via tender at around $9 a barrel below dated Brent, slightly better than the August-loading. Dar Blend crude is heavily discounted because of its high acid content, making it unattractive to most Asian refiners.
Sudapet sold two cargoes of Nile Blend crude for loading in June to European trader Arcadia. The 600,000-barrel lots were traded at a discount of around $5.37 to $5.90 a barrel to the Minas Indonesia Crude Price (ICP).
CNPC sold a cargo of Dar Blend crude for April loading at a discount of about $8 a barrel to dated Brent.
Sudan has issued a tender to sell 2.6 million barrels of March-loading Nile Blend crude, which will close on Tuesday February 26th.
The new benzine supplying agreement signed between Sudan and Ethiopia will see Sudan benzine supplies to Ethiopia rise from 8% to 82%. This will reduce oil imports from many of Ethiopia’s fuel supplying countries, including the Middle East.
Sudan's energy minister expects the oil productivity in Sudan to drop by 10% a decade from now.
Sudan shares a ninth place in BMI's updated Upstream Business Environment rating. The country's score suffers from very poor country risk issues, the absence of gas resources and significant state influence. Unless the risk profile changes for the better, Sudan will struggle to edge further away from the foot of the table, in spite of healthy oil resources. (Summary of report).
Sudapet has sold 2.6 million barrels of heavy sweet Dar Blend crude for January loading at a discount of between $9.00 and $9.70.
The average of Sudan's actual oil production in 2008/2009 is 470,000 barrels per day according to the minister of energy.
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