Sudan is an oil producing country that has been exporting oil since 2000. However, oil discovery and exploration has continued up till the present. This discovery of oil has played a great role in strengthening the economy of Sudan. According to the latest news, Sudan’s oil revenues in February 2008 were 397.78 million US dollars. There were further details, provided by the ministry of finance and economy in Sudan. The news release showed that 298.96 million dollars went into export’s proceeds. However, there was a staggering 108.52 million dollars revenue that came from refining crude oil, by local oil refineries. The federal and Southern Sudan government had their cut. The federal government received 239.30 million dollars. Where as, the Southern Sudan government was entitled to 158 million dollars for the month of February 2008. These facts were reported in a meeting that took place between Government of National Unity and Government of Southern Sudan.
Sudan was also engaged in selling 2.6 million barrels of Nile Blend crude, through a tender. There have been 1 million barrels of heavy sweet crude sold by the Sudanese oil company Sudapet. These barrels were purchased by European based trader, Trafigura. They were sold at a discounted price of $3.60, with the discount offered on Minas Indonesia Crude Price (ICP). Sudapest has also been involved in selling 1 million to Arcadia. They were sold at a discounted rate of $4.98 to the Minas (ICP). Yet, there were additional sales of 60,000 barrels, by Sudapest. These too were sold at a discount of $4.45 per barrel.
With production of oil since 2000, Sudan has been actively playing an important role in oil exports. South Sudan is considered to have some of the world’s biggest oil basins. It has been rapidly exploring for oil resources for the past few years. This initiative took place due to the Comprehensive Peace Agreement (CPA). This agreement was signed in January 2005 and ever since then the southern Sudanese economy has benefited tremendously from oil exports. However, with bigger projects already underway, there is always evident danger to the safety of those living in oil rich areas. Therefore, the government has been playing a vital role in shifting these citizens to safer areas. These unsafe areas include the Upper Nile State in south Sudan. This area has been marked with conflicts and there are growing international concerns for the safety of citizens.
Sudan has a rapidly developing economy and the reason for this development is the oil exports to various nations across the world. Amongst the beneficiaries are China and various European countries. China has been running one of its biggest oil projects in Sudan since 2004. There has been growing pressure on China to find new oil resources to meet its demands. With the decline in its own oil production, China has invested in oversees projects. Keeping the present developments in mind, Sudan can easily secure a stable place in the world oil market. What remains to be seen is if internal conflict will derail this emerging oil exporter and effect an already jittery oil market.