The inauguration of Hadidah Oilfield has revived hopes by the Sudanese people for an imminent economic recovery after the country has lost 75% of the petroleum revenues due to the secession of South Sudan. Their hopes for rejoining the club of oil exporters were also heightened, according to the Minister of Petroleum, Dr. Awad Ahmed al-Jazz.
In a speech he delivered at the inauguration ceremony of Hadidah Oilfield in East Darfur State, Dr. Jazz said commencement of production by Hadidah and Bursaya (South Kordofan) besides the new finds would elevate the country’s oil production and would thus boost the national economy, compensate the loss that was caused by the secession of the South and allow the Sudan to rejoin the list of oil exporters.
He added that Hadidah Oilfield is a genuine addition to the national economy, particularly at this time when the country faces scarcity in the foreign exchange it needs for covering the imports invoice and when the prices of those imports are soaring.
Inaugurating the new oilfield, President Omar al-Beshir optimistically announced that Sufian oilfield in the western part of Block Six and other promising oilfields would begin production consecutively, a matter which, he said, would help achieve economic development. Hadidah Oilfield will add to the national income and to the welfare of the people of the region.
Hadidah Oilfield belongs to the Chinese Petro-energy Company, lies in Block Six, yields 10,000 bpd and its product is high-quality light crude.
The Sudan began petroleum production and export in 1999 relied on it by 80% of general budget until the secession of the South last year, causing a difficult economic crisis. In order to overcome this crisis, the Ministry of Petroleum laid down a rapid programme for increasing the oil production in the north providing for exploration of new oilfields and development of existing ones by raising the rate of extraction to 47%. The Ministry announced six blocks which are 8, 12B, 10, 18, 14 and 15, lying in the north, west, east and west of the country. The new oilfields started production, together with Bursaya Oilfield which was inaugurated last week, producing 6,000 bpd.
Ali Saeed, of Zarga Om Hadidah, wished the this new wealth would change their pastoral and agricultural life style. He called upon the executing company and the Government to provide more services, including roads, water wells, electricity and schools the region is in need of.
Fatimah Abdul Razig called for employing the petroleum in a way that brings about prosperity and welfare to the people who have suffered negligence. She also called for providing women with education and training services.
Ni’mat Hammad, Member of Parliament of Abu Karanka Constituency, expressed the wish that the oil production would be of a direct benefit to the ordinary people and that the 2% of the proceeds appropriated for the producing State continue to be set for development and services.
Economists opine that an addition of 10,000 bpd to the country’s oil production would rejuvenate the economy and prepare for oil exportation and would automatically bring down the rate of exchange and fetch hard currencies.
The Ministry’s medium-term 2013-2017 plan is aimed at adding 100,000 bpd from Block Six, 20,000 bpd from Blocks 2 & 4 and 140,000 bpd to reach 320.000 bpd in 2017.
The Ministry’s official reports indicate the discovery of gas in Block 15 in the Red Sea estimated at 500 million cubic feet, a total of 1,380 cubic feet in Blocks 2, 4 and 6. Moreover, gas was discovered in Block 8 of Dindir area estimated at 677 cubic feet in addition to another gas find in Block 6 of Al-Foulah.