There is oil down there! Anyway, South Sudan is home to oil reserves, representing more than 80% of the total oil stocks of Sudan, to which it belonged until its precipitated declaration of independence in 2011. The country ranks third in oil reserves in Sub-Saharan Africa with an estimated 3.5 billion barrels produced annually.
Who owns the oil industry in Sudan?
The state-owned China National Petroleum Corporation controls 40 per cent of the largest oil consortiums in Sudan. It has invested heavily in Sudan’s oil infrastructure, including the pipeline to Port Sudan and several refineries in the north. And so it benefits heavily from Sudan’s oil industry, importing billions of dollars of oil per year.
Will Sudan increase oil production?
Neither country will likely be able to substantially increase production without significantly improving the security situation or increasing foreign investment. Sudan brought two small oil fields in Blocks 6 and 17 online at the end of 2012, and the country is exploring offshore production in the Red Sea Basin.
How can Sudan improve its oil sector?
Sudan’s oil sector suffers from years of underinvestment. The sector’s productive capacity could be boosted with the introduction of improved technology, staff capacity building, and modernization of existing physical plants.