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Sudan oil production goes less than 500,000 bpd

Sudan’s oil production has plunged to less than 500,000 barrels per day in 2008/2009, said the minister of energy in an interview with Reuters today.

By the end of 2008, Sudan had set its oil production target for 2009 at 600,000 barrels per day, an increase of 20 percent from 500,000 bpd in 2008.

The average of Sudan actual production is 470,000 said the minister Al-Zubeir Ahmed al-Hassan. He further added production may reach over 500,000 bpd next year but official estimates were only 480,000 bpd.

Delays by contractors and in implementing new methods to reduce large amounts of water produced with both the sweet Nile Blend and the heavier Dar Blend, led Sudanese officials to review they expectations.

Last September the Global Witness said that the oil production figures put out by Khartoum government are lower than those put out by the main Chinese operator of Sudan’s oil fields, China National Petroleum Corporation. The watchdog further stressed that there is a difference of figures ranging from 9 to 26% in oil blocks located in Southern Sudan.

However the minister elucidated that the difference of figures can be explained by the fact that the government publishes oil net production figures while the Chinese operator CNPC in its figures includes water and crude consumed during processing.

Speaking before the national parliament last week, Al-Zubeir disclosed they had asked the Chinese company to explain why its figures do not cope with the official statics produced by his ministry.

"We think that they have to defend their figures to Global Witness... because it is their side that had shown these figures," he said.

Southern Sudan, where are most of the oil fields, has to hold a referendum on self determination within 14 months.

However the minister told Reuters that even if the South separated, the two parties would continue to cooperate on the transport of oil through the existing pipeline which transport the oil from southern Sudan to Port Sudan.

It "is more economical and more viable than any other suggestion," he added.

Nonetheless he disclosed that plans to build a new refinery in Port Sudan were on hold due to the heavy costs and that the government is still discussing with China to double the capacity of Khartoum refinery from 62,000 to 100,000 bpd.

The Port Sudan refinery, on the Red Sea, has a 21,700 b/d capacity.