Oil facilities in Heglig have been damaged during the recent fighting, satellite images and videos appeared to indicate, although the exact extent remains unclear. Last week, South Sudan also expelled more than one hundred Sudanese oil workers.
Among the major consortia operating in the region is the Greater Nile Petroleum Operating Company (GNPOC) and Petrodar. The shareholders of the latter include CNPC, Malaysia’s Petronas, Sudan Petroleum Company (SPC), Sinopec and Tri-Ocean Energy.
Existing capacity remains largely unused, after South Sudan shut down its production of roughly 350,000 bpd following disputes over transit fees to tap into Sudan’s infrastructure and a key export terminal along the Red Sea, Port Sudan. The EIA estimates that combined crude oil production in Sudan and South Sudan averaged about 425,000 bpd in 2011, two-thirds bound for China. Neither is a member of OPEC.
Over the weekend, Chinese authorities announced an $8 billion loan to the government of South Sudan, reaffirming its commitment to its ambitious investment drive in Africa. The world’s second-largest economy already has substantial stakes on both sides of the border, particularly in the oil industry. It is influence that may prove strategic to any lasting solution.Page 2 of 3 | Prev Page | Next Page