INDEPENDENT SUDANS OIL
Country Analysis Brief Overview
South Sudan gained independence from Sudan in July 2011. Most of the oil production capacity is now in South Sudan, but the country is landlocked and remains dependent on Sudan because it must use Sudan's export pipelines and port. Disagreements over oil revenue sharing and armed conflict have curtailed oil production from both countries over the past few years.
Prior to independence, the unified Sudan fought two civil wars. The second civil war ended with the signing of the Comprehensive Peace Agreement that was put into place from 2005 to 2011. South Sudan gained its independence from Sudan in July 2011. However, there are still unresolved issues that have caused tension between the countries after independence. The border between the two countries is undefined, and some areas along the border remain contested.
Most of Sudan's and South Sudan's proved reserves of oil and natural gas are located in the Muglad and Melut Basins, which extend into both countries. Natural gas associated with oil production is flared or reinjected into wells to improve oil output rates. Neither country currently produces or consumes dry natural gas.
National oil companies from Asia dominate the oil sectors of Sudan and South Sudan. The China National Petroleum Corporation, India's Oil and Natural Gas Corporation, and Malaysia's Petronas hold large stakes in the leading consortia operating oil fields and pipelines. National oil companies Sudapet (Sudan) and Nilepet (South Sudan) also hold small stakes in operations.
South Sudan has experienced frequent disruptions to production over the past few years. In January 2012, the country voluntarily halted its production because of a dispute over transit fees with Sudan. South Sudan's production was partially shut down again at the end of 2013 because of civil conflict.
China is by far the leading export destination for crude oil from Sudan and South Sudan. In 2013, Sudan and South Sudan's crude exports accounted for 2% of China's total crude oil imports, down from 5% in 2011.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.