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Minister reassures India about its oil investments in Sudan

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November 1, 2010 (KHARTOUM) – Indian oil investments will not be affected by the independence of southern Sudan following a referendum scheduled to take place next January.

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Minister Lual Deng (Getty)

Sudan’s oil minister Lual Deng Lual who is currently visiting India told reporters in New Delhi that Indian investments in southern Sudan oil will be preserved disclosing that "a formula is being worked out" in this regard.

Lual is attending the ninth Petrotech International Oil and Gas Conference and Exhibition organized by the Indian Ministry of Petroleum and Natural Gas.

ONGC’s overseas arm ONGC Videsh Ltd (OVL) has a 24.125 per cent stake in Sudan’s Block 5A. OVL also has a 25 per cent stake in Sudan’s Greater Nile Oil Project (Block 1, 2 and 4), which produces 280,000 bpd.

OVL, which entered Sudan in 2003, already has three oil blocks in Sudan. It has also built a 741-km-long multi product Pipeline linking Khartoum Refinery to Port Sudan.

India meets about 80% of its crude oil requirement and 20% of its natural gas requirement through imports. Indian demand during the next 10 years for oil is expected to increase by 40%.

The Sudanese minister said that his country is seeking to build a 150,000 barrels-per-day refinery at Port Sudan by the end of this year, stressing that Sudan welcomes any investment partners.

(ST)

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  • 2 November 2010 04:38, by Young Nation

    The foreign oil companies likely to be affected when South Sudan becomes a sovereign nation are those still doubting the probability of South Sudan becoming a separate political entity from the North. Top on list are Chinese and some Asians oil companies. My humble opinion is that, the SPLM should really pay serious attention and start identifying who its true and genuine friends are amidst this time of need. True friends are those who come to their aid during time of uncertainties. As Southern Sudanese, we deeply know who such freinds are. America and some African countries to the South of Sahara are among these friends.

    Young Nation is a BA student at UQ, Brisbane, Australia

    Reply to this message

  • 2 November 2010 08:59, by jalabi

    What crazy people??!!

    Are you angry because Sudan oil minister speaks frankly and away of emotion??!! those who live in US, Austoralia, and Europe and very eager to separate the south, have you ever thought about how would you export your oil if diverted from Port Sudan?? tell me how? by bucket through Kenya?! knowing the fact that 98% percent of the south revenues are from the oil which exported through north and managed by north and the south gets the money at the end of the day because of that.

    Did you hear the south finance minister when express his deep concern if the south people voted for secession because his treasury is empty and no agreement yet between north-south on how the oil revenue will be calculated.

    Are you angry because the oil minister Mr. Lual talks about new project of 150,000 barrels-per-day refinery at Port Sudan by the end of this year??!!
    Did you know that last week he inaugurated new oil well in the north (south Darfour)??!!

    The oil minister made it clear that he is unionist and no longer separatist, this what he believes and you know what believe means.

    Mr. Lual knows very well that the quantity of the oil in the north much bigger than the south and the south will always need for the north and will rely on the north not only on oil exporting but starting from the suger spoon and even the piece of match that comes from the north ending on oil exporting!

    I totally support secession for now because I want to see how bad the "fail state" going to be, and those who consider US as GOD and will take them from the hellfire and drag them in heaven, you will be hardly disappointed my friend when the truth reveals itself!

    Jalabi (Abo Jalabia)

    Reply to this message

    • 2 November 2010 11:34, by Paul Ongee

      Jalabi (Abo Jalabia),

      Don’t waste your time preaching outdated unity based on exporting Southern Sudan oil through Northern oil pipelines to Port Sudan. I think you’re not yet convinced that South Sudan has already gone. It’s already a separate political entity.

      You don’t need to worry about exporting our oil to international market through Port Sudan but worry about economic problems facing Northern Sudan in general and the ruling elite in Khartoum after South Sudan gets it independence. The poor majority of Northerners would suffer economic downfall because of the mentality of Jallabi (Abo Jallabia) and the likes. Keep watching or reading what is going to happen over the remaining 9 weeks.

      Paul Ongee
      Khartoum, Sudan

      Reply to this message

      • 2 November 2010 12:57, by jalabi

        Mr. Paul (who still live in north Sudan),

        I’m not calling for unity just because of exporting oil but I strongly support secession because that will prove what I stated above and who will be the loser!

        Oil will never going to be an issue for the north for two reasons:

        1. till the south convinces western companies to invest their money in building pipeline through Kenya and till the south bring harmoney among southerners by fighting tribalism which is very difficult for now if it is no impossible, and provide security so the investors feel safe and bring their money, till that happen we will enjoy getting the cheap oil and that may take at least ten years if any!

        2. We have oil and gas everywhere in the north it’s just a matter of time till we add it to the circle of production. (why you ignore what I wrote above about inauguration new well in south Darfour, before the end of this year new one will add in Koesti and in north state by march of next year, etc).

        You better leave the north soon before you become foreigner soon.

        Good luck

        Jalabi (Abo Jalabia)

        Reply to this message

        • 3 November 2010 02:41, by Ahmed Chol

          Jalabi( with no jalabia),

          We will teach you tough lessons, what are our benefits under your freaked systems?
          There is nothing such as a hell of fire, our guns in the SPLA produces fire too, give it a try and you will be put through hell.

          Ahmed Chol, the future commander of Anya-nya III if the south joins the north

          Reply to this message

    • 2 November 2010 14:13, by Agutran

      Jalabi, If Southern Sudan oil could be channel from South Sudan to Port Sudan through the pipeline, then it could be done the same way to Mombasa or any other port in Kenya?

      If you’re not that smart to know that the pipeline could be redirected to the other direction, then, you shouldn’t have such a loud mouth.
      Do something else to yourself that’s valuable.

      Reply to this message

      • 2 November 2010 14:26, by jalabi

        Mr. Agutran,

        The oil Minister Mr. Lual said it from day one that exporting south oil through Kenya is economically unprofitable and money wasting and it is up to you to believe such clear fact or not!

        Good luck.

        Jalabi (Abo Jalabia)

        Reply to this message

        • 2 November 2010 22:15, by Covert

          Jalabi, why do you need to worry of others spending their money the way they want? You need to worry about your own economy in the north.

          If you want to work in the South, then summit your application in advance and your ability to work for us will be evaluated, otherwise don’t waste your time here as an adviser.

          Reply to this message

        • 3 November 2010 03:42, by Justin Chicago opiny

          Economically and geographycally exporting oil through Mombasa is more viable,cheaper and cuts the distance to the consumer countries in the thousands of miles.China and India are the only countries in South East Asia that have a high demand for oil only second to the United States Of America.

          They have the Technology to do just that in the oil field. If the North has oil in commercial quanity than the South that is good for them it will make the two Sudan a happy place to be instead of fighting over oil. The future of oil will change drastically as the new Technology is looking for greener more environmental fuel like Hydrogen,Solar energy,Electrical cars will replace the traditional cars running on gas and diesel fuel not in the far distant future.

          We should not put all our thoughts on oil the wells will dry up at any given time before that time come into play we have to have other alternatives and techonology to make life easy. It time to invest in education and research for the future generation. We should think a head of time. Oil is not the end of the world.Imagine the Dubai tycoons will be no more as their oil wells is going to go dry by 2015 they are now investing in housing estates and insfracture,

          Reply to this message

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