By NICHOLAS BARIYO
China and Sudan have agreed to work together at Sudanese oil
fields and a refinery to reverse the plummet in the East
African country's production, Sudan's state news agency
Production has declined since the independence last year
of South Sudan, where three quarters of Sudan's oil fields were
A deal to revamp the 100,000 bpd Khartoum refinery was reached over the
weekend during talks between Sudanese Petroleum Minister Awad
Ahmed Al Jaz and China National Petroleum Corp. (CNPC) vice
president Wang Dongjin, state-owned Sudanese Media
The refinery is a joint venture between
the Sudanese government and CNPC, the largest oil-producing
company operating in Sudan.
CNPC, which operates oil fields in Sudan and South Sudan,
has been caught in the crossfire of tensions between the two
CNPC hasn't returned calls or emails from Dow Jones
Newswires seeking comment.
The news agency didn't disclose details of the amount of
planned investments and expected output levels.
Sudan's oil production has nosedived to around 115,000 bpd
from 500,000 bpd before the secession of South Sudan. The oil
ministry is targeting to boost production to at least
150,000 bpd by the end of this year.
Mr. Al-Jaz and Mr. Wang also discussed plans to restart the
shipping of South Sudanese crude through Sudanese pipelines and
The Sudanese economy is trying to recover from a host of
economic hardships emanating from the loss of oil fields as
well as South Sudan's decision to halt transit oil shipments in
January in dispute over oil transit fees.
Operations at the Khartoum refinery were also thrown into
turmoil in January due to a lack of crude for processing after
South Sudan halted shipments.
In September, the two former civil war foes bowed to
international pressure and signed a peace accord, which is
expected to pave the way for the resumption of oil shipments by
the end of the month. Until January, China was the largest
importer of crude from Sudan and South Sudan.
Dow Jones Newswires