Sudan Intends to double oil production within 5 years
According to Sudan's Ambassador to Bahrain, Ahmad Mahmoud Abousan, studies by excavation companies confirmed the existence of large amounts of oil reserves in Eastern Sudan. The government has been actively working in Eastern Sudan - extracting natural gas and doubling the 500,000 barrels per day production rate of oil within…
According to Sudan’s Ambassador to Bahrain, Ahmad Mahmoud Abousan, studies by excavation companies confirmed the existence of large amounts of oil reserves in Eastern Sudan. The government has been actively working in Eastern Sudan - extracting natural gas and doubling the 500,000 barrels per day production rate of oil within the next five years.
Moreover, geological studies confirmed the existence of abundant sums of valuable minerals (gold, phosphor, and copper) throughout several regions in Sudan. Most of it in the northern part of the country, where the government plans on utilizing its resources by investing in the extraction of these minerals for trade purposes.
The completion of the construction of the Marwa dam helped the country by generating electricity and promoting the efficient use of water. The dam assisted investments in agriculture by applying the latest technologies to efficiently use river water in agriculture, thus decreasing costs to investors.
Abousan added that the Marwa dam is considered the largest energy-generating dam project in the entire African continent. The dam’s height is around 67 meters, and a large lake of 478 sq. km. is formed by it. The turbines of the dam are expected to generate electricity at 1250 mega watts. The dam has allowed the country to utilize 40% of the Arab world’s available arable land.
The dam has increased the standard of living of the rural populations of Sudan, thus allowing a better life for the Sudanese citizens and better relations between the government and its people. The project was a major success in promoting economic and social stability in Sudan.
The ambassador explained that the project has allowed for the availability of large amounts of food reserves in the country at a time when the rest of the world is suffering from a food shortage crises. Thus, the increased prices of food provides a good incentive for investors to take advantage of the situation.
Sudan has been successfully able to attract billions of dollars in foreign investments from Arab and European investors over the past 10 years. The majority of the investments were in the oil industry. However, other sectors such as transportation, infrastructure development, and financial sectors were able to attract considerable amounts of foreign investments.
Sudan has a lot of room for further investments, particularly in the services sector. Currently, the investment climate in the Sudan is very attractive, due to the success of many projects in the past few years and the modification of investment laws to allow for tax cuts to investors.
Sudan’s Minister of Finance, Awad Al-Gaz, announced that that the inflow of Foreign Direct Investment (FDI) to his country from 1991 until 2007 has reached $18 billion, indicating that the actual figure is much higher if errors and omissions are taken into account.
He also revealed in the investment and development memorandum that was submitted during a conference in Khartoum with Sudanese workers that are employed by international and regional financial institutions, that most of this inflow targeted investments in the energy, mining, industrial, and economic services sectors.
According to regional statistics, the magnitude of FDI inflows to Sudan currently puts it at the top of the list of high FDI-receiving countries amongst African and Arab countries.
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