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China, Sudan agree to increase oil production – officials

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November 10, 2012 (KHARTOUM) – Sudan and China have agreed to work towards increasing the former’s oil production and boosting cooperation in the field of mining, officials said.

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An oil refinery built and financed by China, 100 km from the capital of Sudan, Khartoum (http://www.abo.net)

Awad Al-Jaz, Sudan’s minister of petroleum, held a meeting on Saturday with the Vice President of China National Petroleum Cooperation (CNPC), Wang Dongjin, and agreed to boost oil production in Sudan and further develop the Khartoum Oil Refinery.

According to a bulletin by the Sudanese ministry of oil, the meeting discussed a number of common interests as well as preparations to resume exportation of South Sudan oil via Sudan as per a deal signed between the two neighbours on 27 September.

Sudan’s oil production slumped to 120,000 barrels after the East African country lost three quarters of its previous production figure to South Sudan when the latter seceded to form an independent state in July last year. Land-locked South Sudan halted oil production in January this year following a bitter row with Sudan over transit fees.

After the two countries fought a brief war in April around border oil fields, however, they resumed talks and managed to trash out a deal whereby Juba will pay transit fees of about $9.10 and $11 a barrel as well as $3.08 billion in assistance to help Sudan overcome the loss of oil.

The Sudanese minister said that the wholesale implementation the deals signed with South Sudan, which include security and border demarcation, will ensure resumption of oil operations, stressing that the provision of security and sustainability of peace is critical.

For his part, the Chinese official said that his country’s relations with Sudan will remain solid due to continued cooperation.

Sudan says that resumption of oil operations hinge on South Sudan’s implementation of a deal to secure the 1800-km borders between the two countries through the operationalization of a demilitarized buffer zone and cessation of support to rebels in Sudan’s border regions of South Kordofan and Blue Nile.

Al-Jaz told Reuters last month that oil production will reach 150,000 barrels per day (bpd) by the end of 2012 but this figure contrasts with that of the International Monetary Fund (IMF) which projected, in its annual Sudan report earlier this month, that oil production will likely drop by 60 percent in 2012 before starting to increase again.

"[O]wing to waning mature fields (higher quality Nile blend) and other technical production problems, 2012 production is expected to sharply decline by 60 percent to 117 to 120 thousand barrels per day (bpd)," said the IMF report. "Enhanced recovery in existing fields and further exploration will likely help production to increase again starting in 2013, with a peak expected in 2020 at near 240 thousand bpd, before a gradual decline to about 144 thousand bpd begins in 2030".

Chinese companies dominate the oil sector in both Sudan and South Sudan, and Sudan is had been one of China’s top foreign suppliers of crude oil. Sudan has recently awarded nine exploration blocks to consortia formed by companies from Canada, Brazil and the Middle East.

Sudan is also conducting oil exploration activities in Block 12B southeast of the western region of Darfur, the scene of a nine year conflict between the government and rebel groups. Darfur block will be operated by China’s PetroEnergy.

In a related development, Sudan’s minister of mining Kamal Abdel Latif announced on Saturday that “dozens” of Chinese companies expressed interests in investing in Sudan’s mining business, according to the official news agency SUNA.

Abdel Latif told SUNA that this happened during his participation at the China Mining Conference and Exhibition on November 3-6 in Tianjin, China.

The minister added that Sudan’s participation in the conference is hoped to increase Chino-Sudanese relations in the field of mining and help Sudan benefit from Chinese expertise in developing this sector.

Sudan recently opened its first Gold refinery to boost the quality of the country’s gold exports. Abdel Latif announced last month that 55 companies have been awarded licenses to mine for Gold in the conflict-hit region of Blue Nile but he did not disclose the identity of those companies.

(ST)

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  • 11 November 2012 06:37, by George Bol

    Did Sudan compensate our oil that they have stolen? If yes, how and when. This oil resumption is another prerequisite for theft and there is no guaranteed. Here is the trick: when the South react to the problem of Abyei and borders, then Sudan will say let revenge the Panthou oil field. as simple as that.

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    • 11 November 2012 07:10, by Force 1

      Really! Is South Sudan so well-off now that it’s going to give away $ 3, 080, 000, 000.00 dollars in assistance to Sudan? Really! The people of South Sudan are so rich now that $ 3.08 billion is just a change to give away? Are our leaders that out of touch? This is just very hard to believe!

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    • 11 November 2012 08:15, by South South

      There is no more oil in Sudan to be increased by china. Unless stealing of South sudan oil is still going on. Arabs are the master of the masters in stealing and looting. They are the worst in looting and stealing even though they pray 5 times a day to Allah. Allah is used as cover up only. Dishonest people on the face of Earth. Read Arab history to know them.

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      • 11 November 2012 12:34, by Northern Sudanese

        South South
        really are we thieves? what about those who stole 4 bilion and never gave it back? what about those thousands of south sudanese locked up in US prisons? what about those criminals who kidnap and kill aid workers? what about drunk police and soldiers killing each other with their families?
        get a life you piece of shit :D

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        • 11 November 2012 13:47, by South South

          Northern Sudanese,
          I thought you learn something from this discussion board because you have been dealing with people who are open minded from South Sudan. I was wrong, you still studip and simple minded like many fake Arab. Sudan is one of the worst country on the face of the earth in many ways including Omar Bashir who stole 4 billion dollar from Sudan. Arabs endorsed looting.This is the point.

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          • 11 November 2012 13:53, by South South

            Northern Sudanese,
            You have not answer my points. My points are: 1- No more oil in Sudan to be increased. 2- Arabs endorse looting and stealing. omar Bashir is a big thief. Unlike Sudan, people of South Sudan are speaking out against corruption including our president, Salva Kiir who is out there to talk about corruption in South Sudan. people of South Sudan talk about corruption. Sudan, no.

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            • 11 November 2012 16:25, by Northern Sudanese

              South South
              i bet you aint understand anything, corruption or no corruption, the place where major projects are taking place are located North of the Border. new factories, roads , dams hospitals ect are being built up north while down the border, all projects are on hold. thats the diffference, we aint have thieves in sudan who stole bilions, british banks denied those bilions long ago :D

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            • 11 November 2012 16:30, by Northern Sudanese

              I don’t know how you compare my country to yours, your country has the worst health conditions on this planet while new hospitals are being built in mine, more than halve the people in your country are in food crisis while in my country algazera project is going to make the nation 96% food self suffiecent, new dams are being built such as atbara and roseires which becomes the longest in the world

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            • 11 November 2012 16:36, by Northern Sudanese

              South South
              don’t fool yourself, give me a name of a major development project today ’’in south sudan’’ which is going great or nearly completed :)

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          • 11 November 2012 16:21, by Northern Sudanese

            South South
            hahaha really? is Sudan really that bad? i hope you know the difference between bashir and kiir and between sudan and south sudan lol, south sudan is a place with no roads, food, electicity, schools (80% can’t read and write) , hospitals , security, clean water , buildings and the list goes on....... what country is that? where more than halve the people are food insecure?

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    • 11 November 2012 08:31, by Dinkawarrior

      Increasing oil production! Are you surely serious? I don’t thinks you do have that kinds of ability to reproduce our oil while in our watch. Let’s wait and see what is going on there in Panthou? We told Mr. Kiir’s Administration that there is no oil production ’till we see the Abyei’s issues have been solved or otherwise Kiir will be held accountable forthat!

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  • 11 November 2012 06:58, by Gabriel KK

    What were you doing when South Sudan closed the pipeline?

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    • 11 November 2012 09:43, by Ruach

      Chinese must shut up and forget about South Sudan!Let them work with their Arabs

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  • 11 November 2012 12:35, by mudfish

    This is the oil that Sudan has stolen,but it will finish soon.china will miss their chance in S Sudan.

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  • 11 November 2012 12:42, by Northern Sudanese

    China is a great partner, but we shouldn’t fully depend on it. for major economic reasons, we must focus on Europe. Excluding the german embassy incident, countries like the Netherlandse, Austria, France , Germany and UK have done a lot in supporting Sudan. Now that a number of dam projects are under constructions over the nile to create lakes, agriculture can create more money

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    • 11 November 2012 12:51, by Northern Sudanese

      we still got 64 milion hectares of arable land in the country, Algazera scheme can make us 96% food self suffiecient. the rest can be used for investment and exportation. that would create bilions. Brazil makes $250 bilion from agriculture, Australia makes $155 bilion from agriculture, Egypt makes $70 bilion, in sudan have about 10 times arable land of egypt,we make make $200 bilion

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      • 11 November 2012 12:55, by Northern Sudanese

        The major problem is that we don’t have enough water connections and funding. that is why these new dams are so vital, from the dams we can get water connections for irrigation and from foreign investment we can get the funding. conflict and sanctions is whats keeping foreign investment away from the country, if a company invests in agri then it will lose due to sanctions.

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      • 11 November 2012 12:57, by Northern Sudanese

        ’’we can make $200 bilions in the next 8-10 years’’

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  • 11 November 2012 13:02, by Northern Sudanese

    35%-40% of farming land in the arab world is in sudan, as the arab world is moving into food crisis it needs to get more food, they all view Sudanese land as the right solution. Gulf companies are planning a lot of investment and thousands of egyptian farmers are applying to farm in Sudan. thats why egypt is so interested in 4 freedoms with sudan

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    • 11 November 2012 14:21, by mohamed mahgoub

      NS. Are u sure u talking about the Sudan we know or some other place,nice dream hope u r right my felow stupid countryman! I know there a disorder called - walking while a sleep- but never heard of- writing while a sleep- if u r naive enough to believe the NCP lies,we r not,nobody asks u to comment u can stop others laughing at u, just shut up like J,M Ali...

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      • 11 November 2012 14:50, by panchol

        Muhammad Maguob.
        u r right my bro. NS should keep quite then to tell as liers . NCP party is well known all over the world about foretelling predicting liers .

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      • 11 November 2012 15:02, by Force 1

        mohamed mahgoub, you’re absolutely right, N, Sudanese is talking about his own imaginary Sudan; not Sudan that we all know well. Northern Sudanese is the only one left here still delivering lies; his friends are now ashamed to keep saying lies; that’s why they disappears for a while. But, make no mistake about it; they might come back again when they get paid to lie!

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        • 11 November 2012 16:17, by Northern Sudanese

          Force 1
          thats what you south sudanese wish :) , and you know what, not all sudanese really care about politics, everyone who reads southern comments choose to ignore it because they know its made up bulshit :D
          those who disapeared discovered there is no need to keep repeating again and again the same stuff, they know it won’t make a difference in an insect’s brain :D

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      • 11 November 2012 16:14, by Northern Sudanese

        mohamed mahgoub
        you aren’t even Sudanese :) , its super easy to put a northern name and claim to be northerner :D i can put ’’John Garang’’ and say am southerner lol
        inta mu3afen wa khaen :D

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        • 11 November 2012 17:07, by Rommel

          Northern Sudanese:
          Where exactly do you get your figures from!? When you posit the $70 billion figure, ostensibly in relation to remittance from the agriculture sector [that Egypt apparently makes]... are you talking of annual revenue? Because if you are, then sadly you’re mistaken; the entire Egyptian economy makes no more than $46 billion, annually.

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          • 11 November 2012 17:38, by Rommel

            The reason countries like Australia can make over a $100 billion a year from their agriculture sector is due to functioning and mature transportation systems that took decades to build. You need a comparative artery of roads and railway and technology to make the aforementioned profits possible. Dang, I almost forgot... Australia is not being governed by ’Arab’ supremacists and genocidal Islamist.

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            • 11 November 2012 19:39, by Northern Sudanese

              Rommel
              Yes thats true, agriculture needs proper roads and transportation which is currently being built in Sudan. You can see from White Nile Sugar factory (built this year) that it has great transportation and functioning systems, even small airports are built near it. but transport is a secondary issue, without water nothing can be irrigated, so dams are more vital for agriculture

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          • 11 November 2012 19:32, by Northern Sudanese

            Rommel
            hahahahha you are so funny lol, so egypt gdp is $46 bilion??? that means even we are far richer than egypt lol, that would mean that south sudan has a higher per capita than egypt.
            Egypt’s GDP is $525.6 billion , 13.5% is coming from agriculture :) $70 is an estimate figure, it can go higher and lower.

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            • 12 November 2012 13:42, by Rommel

              Northern Sudanese:
              I know, aren’t I just hilarious!? Well, intelligence and wit are corollaries, aren’t they? You seem to be measuring the strength of an economy purely on the basis of its GDP fugures, however, unbeknownst to you, this methodology is notoriously unreliable. Egypt’s GDP is indeed around $500 billion, but its annual revenue is no more than $46 billion.

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              • 12 November 2012 13:55, by Rommel

                Allow me to hammer this message home: India’s GDP seems rather impressive at $1.843 trillion, but annual government revenue is derisory, at $196.4 billion, with the per capita figures presenting a far more disconcerting picture. The GDP of the United States is mind-blowing at 15.04 trillion, but the annual government revenues amount to $2.303 trillion. Do you understand now?

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                • 12 November 2012 22:01, by Northern Sudanese

                  Rommel
                  sorry but your facts aren’t clear enough :) , the higher the gdp , the higher the annual revenue. i pretty much get your picture, but what you are trying to say is even if the gdp is extremely high it is not beneficial right? the higher the gdp the higher reveneu we can spend on development. so if we in sudan get those $200 bilion we can become richer, right?

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              • 12 November 2012 22:31, by Northern Sudanese

                Rommel
                of course strength of economy depends on strength of gdp. if Sudan’s economy goes from $89 bilion to over $200 bilion that would be a big difference right? of course $200 bilion won’t be achieved in 2-4 years, we are here speaking about 8-10 years. currently we are more focused on dams and irrigation projects, we have the land but not enough rainfall, so we have to use the rivers and nile

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                • 12 November 2012 22:49, by Northern Sudanese

                  to use the rivers we need more dams, water connections and foreign investment. currently the foreign investment is very weak due to sanctions and conflict, that also keeps the economy weak which prevents large projects. for 30 years, gazera projects hasn’t been completed due to these reasons. irrigation is 50% of the problem.

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        • 12 November 2012 00:45, by mohamed mahgoub

          NS.It’s extremely easy to be proud using Garang name& claiming SS identity,but to claim a sudanese needs enormous caurage cuz N Sudan now is like the post WW II Nazi Germany,nobody want to attached himself with such a regime- genocidal,racial,terrorist,corrupted....-It shameful to belong to the same country with Albashir& someone like u guys

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  • 11 November 2012 14:38, by panchol

    if Sudan and China plan for increasing oil production using alternative pipe to take South Sudanese oil then they made it in vein. sincerely, Dear Chinese our eyes as open as satellite over our resources.
    Mind you Junubins are not like Junubins of 1970s. it is not an easy for South Sudanese to offer price worth of 2.5 Million lives.

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