Sudan+Petroleum

Executive Summary:
Although Sudan contains only a 25 percent of its original oil reserves, CNPC has been involved in Sudan since 1996, investing over USD 5 billion to date and managing South Sudan's 930 mi long pipelines through Sudan to Port Sudan until June 2013, showing Chinese commitment to Sudan's petroleum that will likely continue over the next five years. CNPC controls a 40 percent interest since 1998 in the development of Sudan's production in the Heglig and Unity fields. Sudan produces approximately 133,000 barrels per day, and is looking to explore and develop more of its fields to make up for South Sudan's departure.

Discussion:[[image:http://www.thehindu.com/multimedia/dynamic/00904/27th_Sudan_eps_904466f.jpg width="403" height="394" align="right" caption="Sudan's CNPC's pipelines. http://tinyurl.com/k8x9erm"]]
Sudan only has 25 percent of its oil reserves since South Sudan seceded in 2011, but still produces 1333,000 barrels of oil per day. CNPC pumps Sudan's oil through its 930 mi pipelines, built in 1998 through Sudan to the Port of Sudan at the expense of over USD 5 billion since 1996. CNPC controls most of an oilfield in southern Darfur and 41 percent of a field in the Melut Basin. An oil refinery also built in Khartoum with a 2.5 million ton capacity to handle the flow of crude oil. However, in January 2012, Juba shut down its production when a dispute over a pipeline occurred. Production resumed in March 2012 and no serious problems arose until April 2013, where Sudan accused South Sudan of using oil to back rebels, which South Sudan denied. Early September 2013 the situation resolved, however the oil fields will continuously cause problems for the Sudanese government and therefore Chinese petroleum investors. Both Sudan and South Sudan leaders realize that oil is the basis for both countries development, stability and security.

Most of Sudan's and South Sudan's proved reserves of crude oil and natural gas are located in the Muglad and Melut basins, which extend into both countries. Natural gas associated with oil fields is flared or re-injected. Both countries currently do not produce or consume marketed natural gas.