Thursday 23 November 2017

Sudan expects huge deficit in crude oil, derivatives supply in 2018

Sudan expects huge deficit in crude oil, derivatives supply in 2018
(Xinhuanet 11/14/17)

Sudan's government on Monday expected a deficit in the supplies of crude oil and oil derivatives in 2018, with the import costs estimated at more than 2 billion Sudanese pounds (300 million U.S. dollars), according to a Finance Ministry official on Monday.
Sudan's State Minister at Oil Ministry Saad-Eddin Al-Bushra, while presenting a statement to the parliament, announced a declining of oil companies due to accumulation of their debts.
He said the country's oil production dropped to 88,000 barrels a day, with an average reduction of 12 percent, attributing that to the decrease in the oil prices in the international market and accumulation of the companies' debts.
He stressed the need for the government to commit to paying the debts of the partners, saying "if the government failed to commit to repaying the debts of the partners, the oil ministry will be forced to look for external funding with the guarantee of the crude."
In the past, Sudan's oil production amounted to 105,000 barrels a day.
Following the separation of South Sudan in 2011, Sudan lost around 75 percent of its oil revenues.
In 2012, Sudan and South Sudan reached an oil deal stipulating that Juba would pay 3 billion dollars to Sudan over three years as a compensation for losing its oil resources because of the separation.
The deal also stipulated that South Sudan government would pay around 20 dollars per barrel as transit fees for exporting its oil through Sudan's territories.

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