SUDAN: Petroleum Minister Lual Deng says country aims to increase oil production to one million barrels per day within three years

Record ID: 343761

  • Title: SUDAN: Petroleum Minister Lual Deng says country aims to increase oil production to one million barrels per day within three years
  • Date: 10th September 2010
  • Summary: KHARTOUM, SUDAN (SEPTEMBER 8, 2010) (REUTERS) (SOUNDBITE) (English) LUAL DENG, SUDANESE MINISTER OF PETROLEUM SAYING: "We are trying to attract the bigger European companies. I am trying to understand the market itself. My training has been more development, economist."
  • Embargoed: 25th September 2010 13:00
  • Keywords:
  • Location: Sudan
  • Country: Sudan
  • Topics: Energy
  • Reuters ID: LVA6AZOE0BY4AMQCCI8LR3UXXVQW
  • Story Text: Sudan's oil minister says the country aims to increase oil production to 1 million barrels per day within three years relying on new finds and more efficient oil extraction methods.
    Sudan aims to increase oil production to one million barrels per day within three years relying on new finds and more efficient oil extraction methods, Petroleum Minister, Lual Deng said in an interview.
    Deng told Reuters that U.S. sanctions, imposed since 1997, were preventing big American and European oil companies from investing in Sudan, but that smaller firms from Europe were showing interest in the budding oil producer.
    "My objective is if technically feasible to increase the production to one million barrels per day within the shortest period which is feasible all other things equal," he said.
    The target could be achieved, through a two-track approach, improving the efficiency of the enhanced oil recovery in existing wells and also increasing production with new wells, Deng said.
    Sudan currently produces about 470,000 barrels per day of oil and Deng said increasing the output in areas like the Defra field in the central disputed Abyei region would require increased security. The area is still disputed between the north and south who ended more than two decades of war in 2005.
    In Block 5a the Thar Jath field was ready to up production from 16,000 to 40,000 bpd but they were working on a way to transport the heavier crude in that location via the nearby pipeline built for the lighter Nile Blend, he said.
    New finds by Petrodar in Blocks 3 and 7 as well as Block 6 operated by China's CNPC and Block 17 operated by Yemen's Ansan Wikfs will also up production in the next two years.
    Deng said Finnish/Scottish Fenno Caledonian exploring two concessions Blocks 17 and 8 should also contribute to output in the coming three years.
    "We are trying to attract the bigger European companies. I am trying to understand the market itself. My training has been more development, economist," said Deng.
    "My worry here is how to best utilise this sector which is an important sector in the Sudanese economy," he said.
    The minister - the first southerner to hold the post - added the only way to lift U.S. sanctions and attract the oil giants was to resolve the political problems of the country, namely conflict in Darfur and to fully implement 2005's north-south peace deal which will culminate in a southern vote on independence in four months.
    Sudan's north-south partners are still negotiating the sharing of governmental assets ahead of the referendum which many believe will result in secession.
    Deng said talks were underway with the GNPOC consortium to transfer ownership of its Heglig to Port Sudan pipeline to the government. But the Petrodar pipeline would still be considered a liability on Khartoum's balance sheet as of the January 9, 2011 referendum.
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