SUDAN WATCH: Sudan’s production of Dar blend crude to reach 300k bpd?

Wednesday, June 17, 2009

Sudan’s production of Dar blend crude to reach 300k bpd?

Note the 4 comments at Sudan Tribune's article copied here below.

Sudan’s production of Dar blend crude to reach 300k bpd
June 13, 2009 (SINGAPORE) - Sudan will manage to boost its output of the heavy sweet, acidic Dar Blend from 270,000 barrels per day (bpd) to 300,000 by the end of 2009, according to Platts website.

Sudan oil fields

Photo: Sudan oil fields (Petrodar website)

The average production of the Dar Blend crude was 200,000 bpd in 2007 and was expected to reach 275,000 bpd in 2008, but volumes have been well below that until recently.

Chinese refiners are the main buyers of Dar Blend.

This brand of crude is less generally popular among refiners due to its high acidic nature though it can be used fuel oil blending.

China, the largest economic partner of Sudan, is the main buyer of the Dar Blend crude.

A source in the Petrodar Operating Company in Sudan told Platts website that two new fields will be added to production including Gumry and Moleeta.

Furthermore the source said that the new fields produce less acidic crude but cautioned that it is too soon to say what the total acid number (TAN) would be.

Petrodar’s shareholders include China National Petroleum Corp. (41%), Malaysia’s Petronas Carigali (40%), China’s Sinopec (6%), the UAE Al-Thani (5%), Egypt Kuwait Holding (5%) and Sudapet (3%).

Sudan is heavily dependent on oil exports which have declined sharply in terms of proceeds and volume in the wake of a financial crisis that swept developed nation and caused demand to plunge.
Copy of 4 comments on this article...

14 June 2009 by szalan:
This report is opaque, missing some disclosure, and absolutely untransparent. No wonder corruption prevails in sudan’s wealth distribution.
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14 June 2009 by yazB:
The interestig thing is that 35 yrs ago Chevron owned 49% of the feilds it was developing and the goverment of Sudan a controlling 51% by contrast to nowadays the developing partners own 97% and the Goverments’ company owns only 3%! Having said that given the current forecast of a an average price of a barrell @ $75, then these fields have a potential revenue of almost $7 billions per annum. This is roughly the annual operating budget of the kingdom of Morocco which has roughly the same population as Sudan (40 millions) yet the Moroccan GDP is three times the Sudanese! Now we know where all the oil revenue goes!
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14 June 2009 by szalan:
hold on a second, is that $7B the 3% share the Sudapet is getting or is it the net oil revenue before all the parties involed cut their percentage share?

Here is my net annual oil revenue before any costs, interests, and taxes are considered under the two assumption that 250,000 barrels were produce a day and sold at the price of $75.

Annual Revenue=$75 x 250,000 bpd x 30days x 12 months =$6,750,000,000.

The 3% of the above revenues before all cost is taken out would entitle Sudapet the amount of $202,500,000 (0.03x$6,750,000,000).

Now if that 3% amount is split in half between south and north per CPA arrangement, then each side will get only $101,250,000 before costs are considered.

The bigger question then is whether the $6.75 B was derived from how many oil blocks or wells?????

Based on the above figures, and the budget report of Sudan government, it is nnot clear exactly how much income revenue is generated from both the oil and non-oil sectors in the Sudan.

The results are therefore opaque without any qualified independent auditor to verified so.

In other words, the Sudanese are cheated of the resources. lol Szalan.
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16 June 2009 by OYAT:
The production of oil in Sudan is increasing by an average of 82,000 bpd per years, which is good new for Northern Sudan government. Because they never and they will never give out the exact figure of revenue to government of southern Sudan. But I don’t totally blame the Northern, instead I will be blaming the southern Sudan government officials who are responsible to making sure that any revenue in Sudan has to shares equally amongst the two government.

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