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Oil fueling Sudan's solid development

(China Daily)
Updated: 2010-10-29 08:08

A leading petroleum producer, the African nation is investing rich returns in its future

Sudan's oil and gas industry - the country's leading source of export earnings and employment - is now a magnet for foreign investors in upstream and downstream processes.

As Sudan's Vice President Sudan Ali Osman Mohamed Taha notes, "Sudan's oil sector is a key generator of revenue and employment."

Since Sino-Sudanese oil cooperation began in 1995, China National Petroleum Corp has led the way in economic aid and mutually beneficial projects.

China's largest oil and gas producer and supplier is now spearheading innovation through its own operations and the Greater Nile Petroleum Operating Co joint venture.

With responsibility for the sustainable development and expansion of the energy industry, Sudan's Ministry of Minerals plays a leading role in building mutually productive partnerships with foreign enterprises.

The ministry focuses on areas where production has yet to start while introducing more advanced technology and equipment at existing sites in order to boost output.

New roads, bridges and a larger power grid have also encouraged international investors to explore resource-rich areas that were previously hard to access. Offshore drilling operations are also increasing.

"We need serious partners who have money to invest and can complete the projects on time," said Omer Mohamed Kheir, secretary-general of the Ministry of Minerals.

"We believe there are still large reserves of oil yet to be discovered - our energy industry has huge potential and Sudan is now the gateway to Africa for Asian companies involved in oil and gas and mining projects that showcase the whole chain of oil exploration, transportation, marketing and refining available in Sudan," Kheir said.

An industry pioneer, Sudanese Petroleum Pipelines Holding Co Ltd (SPPHC) is an award-winning oil and gas transport firm considered one of the pillars of Sudan's petroleum industry.

Established in 1976, as the Petroleum Products Pipelines Corp, the firm is affiliated to the Ministry of Minerals and supports economic growth by pumping oil to local and foreign markets.

As well as operating and maintaining petroleum pipelines within the country, SPPHC's activities include the transportation, storage and export of petroleum raw materials, products and byproducts such as natural gas and liquid gases.

It also provides laboratory analyses of petroleum and hydrocarbon materials using the latest technology and a highly qualified staff.

SPPHC has experience in staff training and exclusively transports gasoline in the country through a number of pipelines it has built. Such support for oil exports and imports is a major contributor to the national economy.

Earlier this year, SPPHC, which has total assets of $187 million and more than 600 employees, embarked on a major expansion drive with the launch of three new subsidiaries - Sudanese Company for Construction and Oil Services, Sudanese Company for Petroleum Products, and SPP-Final International Co - that aim to give it a foothold in neighboring Ethiopia and Eritrea.

SPPHC has a strong commitment to the communities close to its pipelines. Its valuable support extends to the construction of schools, potable water plants and pumps for local inhabitants.

"We are diversifying our activities from the core business and branching out into the control and management of public station port plants," said SPPHC President, Nasr Eldin Ahmed.

"SPPHC has a long and respectable track record when it comes to safety, quality and the protection of the environment," he said. "The company has also been awarded many certificates of appreciation from a number of international companies and firms due to its outstanding performance.

"We are building pipelines to cover other industrial activities such as the ethanol industry, drinking water projects and other industrial facilities. We anticipate a bright future."

China Daily

(China Daily 10/29/2010 page19)