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Sudan buys gas oil from Kuwait at a premium to avoid damage to refinery: expert

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February 23, 2013 (KHARTOUM) – The Sudanese government has resorted to buying gas oil from Kuwait at a high premium to avoid possible damage to Khartoum refinery, an energy expert told Sudan Tribune.

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The expert, who asked not to be named, said that the refinery’s activity was negatively impacted by the secession of oil-rich South Sudan and instability of domestic oil production.

"The refinery must keep operating because stopping it means losing it once and for all," he said.

Local newspapers have quoted sources this week as saying that the Sudanese Petroleum Corporation has bought 520 tonnes of gas oil from Vitol Group and Independent Petroleum Group of Kuwait Ltd.

The sources said that Sudan had bought 8 shipments each one consists of 40,000 tonnes from Vitol Group and 5 shipments from Independent Petroleum Group of Kuwait Ltd that will be delivered from February to March.

Sudan bought the shipments at a premium of between $4.50-$5.more than market prices which comes at a time of projected shortage in supplies as a result of busy schedule for refinery maintenance during the second quarter of the year.

"The shipment will be delivered on a rush basis but the money will be paid [by Sudan] in the month of June which is why the Sudanese government accepted a sales prices which is $4 higher than Middle East price tag" the expert said.

The expert said that Khartoum is boosting its oil supplies to prevent fuel shortage and improve its negotiating position with South Sudan even if it means paying more.

"It is difficult for the government to find a solution to its economic and oil crisis without reaching a peace deal with South Sudan because the international community has become scarce toward Khartoum" he said.

South Sudan seceded from Sudan in 2011 under a deal that ended decades of civil war. A year ago, South Sudan shut down its entire oil output of 350,000 barrels per day after failing to agree on export and transit fees with Khartoum.

But both countries had agreed last September to set up a demilitarized buffer zone and resume oil production, but neither side has withdrawn its army from the 1,200-mile border.

Sudan insists that security arrangements are concluded before oil exports can resume.

(ST)

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  • 24 February 2013 09:19, by Tong dut
    • 24 February 2013 09:37, by Nibs

      What about new oil fields?! You guys will starve due to your lies and visionlessness.these oil refineries in khartoum are going to waste and damage.

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    • 25 February 2013 01:02, by Lotodo Awino Odug

      ALL THE NEW OIL DISCOVERIES AND INCREASE IN PRODUCTIONS ARE PARTS OF NCP PROPAGANDA MACHINERY TO ALLAY FEARS FROM THE AREADY FRIGHTENED CIVIL POPULATIONS.THEIR SALARIES ARE EITHER DELAYED OR NOT PAID AT ALL.THE REGIME PUT ON AL JAS TO ENTERTAIN THEM ABOUT HOW THEIR NEW WELLS AND GOLD WILL MAKE A DREAM OF PARADISE ON EARTH A REALITY THEN A STATE OF MIND AS PEOPLE ALWAY FATHOM IT.

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    • 25 February 2013 01:40, by Samuel Malual

      Never trust them after Khartoum stealed our oil before we officially shut it down last year. Maybe they are preparing to stealed our oil in a well organised looting.

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  • 24 February 2013 09:30, by Michael Angelo

    Pretending is a big problem in Sudan. Let them urinate in their pathetic pipeline.

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  • 24 February 2013 09:49, by Jalaby

    Well,nothing wrong with that, many exporters oil countries are oil importers at the same time and we can take Nigeria as a good example,Nigeria exports around 2.5 million oil barrel per day as a crude oil and yet to import a processed one because it has no proper oil infrastructure in place,Iran is another example.
    We’ll become oil exporter again by the end of 2013

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    • 24 February 2013 11:40, by Jalaby

      South dream of having an alternative pipeline through Kenya is fading away slowly by slowly
      We all know that South Sudan starts to lose its patience and throw its failure and anger against innocent Kenya country and accusing them of not showing seriousness and fast pace performance on building Lamu port project and railway to Juba

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      • 24 February 2013 11:49, by Jalaby

        to connect that landlocked country to the rest of the world and enable them to export/import their needs and breath as we all know that now Khartoum is strangling them so badly and they can barely breath some fresh air!
        Dr Costello Garang Ring,the Executive Chairman of the New Sudan Foundation (NSF) has sent clear warning message to Kenyan authorities and said to them

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        • 24 February 2013 11:52, by Jalaby

          "If the speed with which the Kenya Government is constructing Lamu port and doing the railway does not change dramatically,we will seriously consider going to Djibouti or Tanga,even though these alternative routes might be a little bit longer"
          This is ridiculous,visionless people want to put their failure on Kenya,did Kenya tell you to halt your oil production

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          • 24 February 2013 11:59, by Jalaby

            and Kenya will build you a quick Lamu port project?who laughed at you and advised u to commit a suicide by shutting down your oil production?
            That Lamu port which also known as LAPSSET project which will connect both landlocked countries:S Sudan & Ethiopia through a railway to Lamu port in Kenya is estimated to cost around $23 billion,yes $23bn and not just 2 or $3bn

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            • 24 February 2013 12:08, by Jalaby

              common visionless people from where Kenya will be able to bring all that big money and rescues you?under the current global economy crisis and Europeans are fighting so hard not to fall under deep recession and then move into a full depression situation,who is going to finance that big project and put his money at great risk since that area is so volatile and unstable

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              • 24 February 2013 12:18, by Jalaby

                Although Dr John Garang started to discuss the idea of connecting South Sudan to Mombasa or Lamu port with Kenyans long time back in 2004 (whether we agree or disagree with Dr. Garang but he had a clear vision about tomorrow no doubt and it’s really unfair if we compare him with visionless leader Mr. Kiir)

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                • 24 February 2013 12:27, by Jalaby

                  Dr. Garang sent Dr Costello Ring to convince Kenyans from privatizing its old uneconomical railway line. Kenya went ahead to concession its rail company to South Africa’s Sheltam.
                  I don’t believe Djibouti/Ethiopia pipeline will ever see the light since Yau Yau and his rebel group plus Upper Nile rebels will allow any company to build even 1 inch of that damn pipeline

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                  • 24 February 2013 12:34, by Jalaby

                    Whether we like it or hate it but the reality on the ground tells us the ugly fact that the whole south now is under the mercy of Khartoum,its life is dependent on it no doubt,till Khartoum changes its mind and open that damn pipeline then the south life will be dependent on aid and world donation to survive!!
                    Visionless people outcome are always null!!

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                    • 24 February 2013 13:37, by Observer

                      Jalaby,
                      This is one of your most delusional posts yet and points to the desperation of your employers to have you keep spilling out the party line that all is great and going to get better.

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                      • 24 February 2013 14:06, by Jalaby

                        Deek Al-Eda
                        I proved you last time that you’re nothing but liar and ignorant,you failed to prove any one of your argument!
                        I’m overqualified to debate with you,I won’t waste my time and reply to you anymore,you little boy go and find some one from your level and keep yourself busy,please do a favor to me and don’t waste my time!

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                        • 24 February 2013 14:30, by Kushoku

                          Jalabi look like u r such a funny guy,what is ur point here if this article is not right so u didnt say what is, how can ur overwualification over Observer will help us understand the truth! I think u r the - deek al eda-by insisting to talk of unrelated and far less connected issues here and insulting people unreasonably

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                        • 24 February 2013 15:23, by Observer

                          Jalaby,
                          The only thing that you have proven is that you are a mouth piece for the government who has no idea of rational educated thinking.
                          If you think you are so over qualified to debate with me why do you keep responding?
                          You never quote facts- you just quote unoriginal opinions and when you are presented with hard facts you resort to name calling, accusing people of being traitors etc.

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                        • 24 February 2013 17:53, by Majongdit

                          brother jalaby,
                          kindly tell me from which English expression do you get the phrase ’overqualified’. there is no such as word as ’overqualified’ in English.

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                        • 25 February 2013 13:04, by Paul Ongee

                          Ya Jalaby,
                          Your usual denying, lying and bigotry are not something new to South Sudanese. This time NCP must either buy crude oil from Kuwait or conclude the alleged "farcical" security arrangements with South Sudan while accepting S.Sudan as a mediator between NCP and SPLM-N to keep its refinery running or risks losing power. Time is not on the side of National Criminal Party/NCP.

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                    • 24 February 2013 15:00, by James Maker Akok

                      Dear Jalaby and Northern Sudanese,
                      My question to you guys. Where is the oils you are been talking North Sudan discovered more oils in North Sudan but now North Sudan is buying Oils gas from another country?
                      LOL hahahahaha, shameful you guys with the fake news on websites you are been posting to cheat yourselves.

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  • 24 February 2013 10:10, by kamal

    Oh God my dear sudanes are suffering . But bhasir told the public that there are new oil fields in north sudan

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  • 24 February 2013 11:34, by Majongdit

    Economically Incorrect: Sudan put themselves in that situation of losing money should have been well spent on other important issues. Had Khartoum allowed S Sudan’s oil to be exported through their pipeline, there would have been no need to purchase gas for the now idle refineries. Instead, Khartoum would have had a saving of about $11 per every barrel per day from the S Sudan’s oil export. See!

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    • 24 February 2013 16:25, by Chol

      Majongdit, who shut-down the pipeline in the first place? What was the reason why the pipelines were shut-down? The notion that somehow you’re telling us” if Khartoum allows oil through its territories; XY&Z would have never happened”! We don’t look at the name and says this person is a South Sudanese; we look at the content of their comments and know who they are.

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      • 25 February 2013 01:47, by Samuel Malual

        @Chol
        Please stopped rushing and tried to understand the motive behind the seen. Don’t you know who shut down the oil? To try to investigate as to why did Juba shut it down. Don’t just act an unpartiotically my friend.

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  • 24 February 2013 13:41, by Observer

    Majogdit,
    Sadly you are correct and a lot of us sensible thinking Sudanese agree with you.
    Had the leaders of both countries swallowed their pride and egos and had Sudan accepted that S Sudan is a sovereign natiion of its own now and will not be bullied by Sudan, the people of both countries would not be suffering as they are.

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  • 24 February 2013 13:45, by nostalgia for 1 sudan


    NO OIL FLOW THROUGH NORTH PIPLINE EVER,LET US URINATE IN OUR PIPELINE AND LET YOU DRINK UP YOUR OIL WITH BEAR:):)

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  • 24 February 2013 13:52, by nostalgia for 1 sudan


    south sudan is severely strangulated,no exports, no imports..east africans are so gready and north is your eternal enemy.just go and die SS:)

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  • 24 February 2013 14:02, by nostalgia for 1 sudan


    LEADERS OF SS ARE SO NAIVE,THEY THINK THAT THEY ARE THE SPOILED CHILD OF THE INTERNATIONAL COMMUNITY.EU IS VERY RELUCTANT TO RESCUE GREECE,SPAIN AND PORTUGAL!!!!HOW ABOUT SS?:)

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    • 24 February 2013 15:28, by Observer

      Nostalgia for Sudan
      What has this article to do with S Sudan and the EU.
      It’s about our government’s decision to pay premium costs to keep our refinery open.
      Had we not been so stubborn we would be earning transit fees from S Sudan (as was agreed and accepted many many months ago)our people wouldn;t be suffering from the economic problems we have and we wouldn;t have to be buying oil from Kuwait

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      • 24 February 2013 17:49, by Majongdit

        Obeserver,
        Very nice observations. I agree with you.

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  • 24 February 2013 18:56, by cbuongdit cholkua

    Jalaby, what a defensive liar. admits the failure khartoum. When are you guys going to accept the truth?

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  • 24 February 2013 20:53, by Mandakoro


    Sudan will never fail..if these pipelines damage the biggest loser is south sudan.they were mainly made to transport its oil and they were made from the oil money..when do south sudanese calculate it right?

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  • 24 February 2013 21:05, by Mandakoro


    one would assume that sudan is the rectum of the world but definitely south sudan would be the anus of the globe:):)

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  • 24 February 2013 21:15, by Mandakoro


    Was it true that jalaba used to buy the cock from dinka people with 1 piaster and sell them the feather of the same cock with 10 piasters?

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  • 24 February 2013 21:16, by Mandakoro


    Was it true that jalaba used to buy the cock from dinka people with 1 piaster and sell them the feather of the same cock with 10 piasters?:)

    repondre message

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