The Sudan Handbook

(Barré) #1
56 the sudan handbook

figure at 4–5,000 kg. Eastern Sudan also has large deposits of gypsum,
and in 2006 14,000 tonnes a year were being mined.

Oil

Sudan’s oil is mostly quite far from the northern riverain area. One of
the striking aspects of the exploitation of this resource has been the
efficiency with which the revenue from it has – despite the distance
involved – been largely channelled to Greater Khartoum (though the
revenues are now shared with the Government of Southern Sudan). The
oil concessions run across Sudan, mostly sloping down from west to east,
from southern Darfur to eastern Equatoria; there are concession blocks
around Khartoum and in the east, but it is not clear what reserves these
northern fields may actually hold. Most of the known oil reserves are in
the south. The pipelines run north to Khartoum state, where one refinery
is located, and then on to Port Sudan, where there is another refinery, and
from where the oil is shipped, most going to the China and Japan.
Not all of Sudan’s oil is the same. That from the border area whether
greater Bahr al-Ghazal meets Kordofan, which was the first area to be
commercially exploited, is called Nile blend; it is of a higher quality
than the Dar blend which comes from Upper Nile. Fula blend, from the
Kordofan-Darfur borderland, is used for domestic consumption.
Since commercial production began, in 1999, oil has transformed the
economy of the central state – though not of Sudan as a whole. In 2008,
oil accounted for 95 per cent of Sudan’s exports, by value, and for 60
per cent of overall government revenue; during the CPA period, the
Government of Southern Sudan has developed as an institution which is
completely dependent on oil, which provides 98 per cent of its revenue.
This governmental dependence is the corollary of a very high level of
state involvement in the oil industry. While the precise terms vary in
different concession blocks, the basic model has been for joint ventures
between government corporations and foreign investors. These allow
close government control; they have also allowed the elaboration of

The Sudan Handbook, edited by John Ryle, Justin Willis, Suliman Baldo and Jok Madut Jok. © 2011 Rift Valley Institute and contributors a^ corporate^ system^ in^ northern^ Sudan,^ in^ which^ there^ is^ a^ very^ close^


(www.riftvalley.net).

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