Tuesday, April 05, 2016

CNPC Excludes Sudan From Plan to Cut Overseas Oil Production: Official
April 4, 2016 (KHARTOUM) - China National Petroleum Corporation (CNPC) unveiled a plan to cut its investments and production in a number of countries except Sudan due to falling oil prices.

Sudan’s Finance Minister Badr al-Din Mahmoud Sunday has met a delegation from the CNPC headed by the manager of financial and accounting department Liu Yu Jin in the presence of the financial ministry undersecretary of planning Abdallah Ibrahim.

According to the official news agency SUNA, Jin said the company plans to cut oil production in several countries except Sudan attributing the reason to the sharp decline in global oil price.

He said the singularity of the bilateral relationship between Sudan and China has urged the company to seek to promote its projects and production in Sudan.

CNPC official also said his company’s decision comes in response to the presidential directives in the two nations which call for the need to enhance the joint strategic cooperation relations.

He expressed hope that the two sides could address obstacles facing CNPC projects in Sudan.

CNPC began its business in Sudan in 1995.

For his part, Mahmoud thanked CNPC for excluding Sudan from its plan to cut oil production, praising its efforts to push forward oil production in Sudan.

Mahmoud called on the company to increase oil production to support economic stability in Sudan, expressing keenness to promote the strategic relations with China and to seek to enhance economic cooperation between the two nations.

The finance minister further pledged to address all the impediments facing CNPC investment and production processes in Sudan, urging the company to explore new oil fields to increase production for the benefit of the two sides.

Earlier this year, Bloomberg News reported that CNPC increased overseas production in countries from Central Asia to Africa to a record despite tumbling oil prices.

“CNPC added 98.86 million tons of overseas recoverable oil and gas reserves last year, 29% above its target, in countries including Kazakhstan, Sudan and offshore Brazil,” it said.

However, the energy giant decided to cut its domestic capital spending by 20% this year and saw domestic crude production dropping due to declining oil prices.

Su Jun, CNPC’s general manager of the production and operation department told Bloomberg News that his company aims to produce 108 million metric tons of crude domestically this year, a decline from a year ago of about 3.2 million tons, or 2.9 %.

China which is the largest foreign investor in Sudan, agreed last year to embark on new oil explorations and to expand its oil operations in Sudan.

In line with an agreement reached in September 2015, China will explore for oil and gas in the Red Sea, Sinnar, and West Kordofan.

The east African nation lost three quarters of its oil revenue when South Sudan seceded in 2011 and currently produces about 115,000 barrels per day (bpd).


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