Khartoum (SMC) Sudan Vision Daily
The minister of state at the ministry of petroleum, Ali Ahmed Osman, said Sudan production of oil until last month stood at 472,000 bpd.
He added the North produced 115,000 bpd while the South produced the remainder, at more than 75% of total production.
The minister said by the end of the current year, the production of the North will increase by 20,000 bpd to reach 135,000 bpd in addition to the entrance of new oil fields to the production cycle.
The minister said the stoppage of supplies from the South to the North is unforeseeable.
"We do not expect this to happen since pumping of oil is not like obtaining water from a water tap that you can turn on and off any time," he said.
The minister added, the South will be the party that will suffer most if they stopped oil supplies to the North since the South depends on oil for 98% and even 100% in other estimates for its budget.
In an interview with Arabia net yesterday, the minister said oil industry in the South is closely connected to that of the North, particularly the pipeline, central processing facilities, support services, laboratories, information centers and data centers.
"Consequently, we do not expect oil to stop tomorrow since this will not be in the interest of the South," he said.
He added if the South wants to export oil through another country, then this would need between 4-5 years with respect to facilities, and also North Sudan consumption would decrease as soon as Southern oil is stopped.
Oman said the state of the North will not suffer considerable economic problems but on the contrary it will be the winner since all the oil facilities are in the North and these will constitute an important infrastructure for the development of oil industry in the future.
On the other hand, the minister rebuffed calls that the oil discoveries processes in the North are slow.
He said all indicators show that Northern states contain abundant oil reserves.
He added there are locations that have potential of commercial production, such as blocks 2 and 4 whose production will rise to 75,000 bpd instead of 55,000 bpd by the end of the year.
He added the same applies to Block 6 that produces now 60,000 bpd and expected to produce 100,000 bpd by the end of the year, 200,000 bpd by the end of 2012 and 325,000 bpd in 2016.
On the other hand, Osman attributed rise of fuel prices to the fact that not all the oil revenue extracted during the past period goes to the North.
"We sell crude oil and buy refined oil at international prices with the difference paid by the ministry of finance.
He added there is another factor, namely that the Sudan borders are open to its neighbors and since prices in the country are cheaper than prices in neighboring countries, oil is smuggled to other countries.
"Oil prices should either be raised or subsidies by the ministry of finance removed," he said.
Osman said there is another reason, namely that 50 % of oil produced goes to the South and 50% to the North.
"We buy oil from the South at the international prices and sell it to them at local price and we think such imbalance should be removed gradually," he said.
Extracted from:(SMC) 2011/3/21
Trifi E. Ahmed - Admin Office