Sudan’s Upstream Oil & Energy Sector: Investors Sought But IOCs Remain Cautious

Sudan has been touting for upstream investment since US sanctions were lifted five months ago. But, with output having dwindled to just 75,000 b/d, plans to boost output to 200,000 b/d have been kicked into the long grass.

Sudan produced 465,000 b/d as recently as 2010. But the country lost 78% of its output with the secession of South Sudan in mid-2011. Production in 2012 was a mere 103,000 b/d, and by early 2018 this had fallen to just 75,000 b/d (see chart). Rising domestic demand means that the country has been a net oil importer since 2015.

Last year saw the easing of wide-ranging western sanctions after 20 years. Their key legacy is that the country’s upstream (and that of South Sudan) is dominated by state companies from China, India and Malaysia. And even these stakes are legacy positions from the country’s split: all have more important stakes in South Sudan. (CONTINUED - 1927 WORDS)

DATA INSIDE THIS ARTICLE

chart Sudan’s Crude Output Initially Stabilized After South Sudan’s 2011 Secession But Has Dwindled Since 2015 ('000 B/D)