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Sudan - Energy
More about the Economy of Sudan.
Petroleum Use and Domestic Resources
In 1982 roughly four-fifths of the nation's energy requirement for industry, modern agriculture, transportation, government services, and households (in addition to wood fuel, charcoal, and the like) was provided by imported petroleum and petroleum products. Approximately 10 percent of these imports were used to generate electricity. Foreign exchange costs for oil imports rose dramatically after 1973 and by 1988 amounted to almost 46 percent of earnings from merchandise exports. Dependence on external sources might lessen when the security situation permits Sudan's domestic petroleum resources to be exploited.
The search for oil began in 1959 in the Red Sea littoral and continued intermittently into the 1970s. In 1982 several oil companies were prospecting large concessions offshore and on land from the Tawkar area near the Ethiopian border to the northern part of the Red Sea Hills. No significant discoveries were reported. In 1974 Chevron, a subsidiary of Standard Oil Company of California, began exploration of a 516,000-square-kilometer concession (later reduced to 280,000 square kilometers by voluntary relinquishment) in southern and southwestern Sudan. Drilling began in 1977, and the first commercial flow was obtained in July 1979 at Abu Jabirah in southern Kurdufan Province. In 1980 major finds were made at the company's Unity Field near Bentiu in Aali an Nil Province, where further drilling by early 1981 had brought in forty-nine wells having a combined flow of more than 12,000 barrels a day. The company has estimated this field's reserves at from 80 to 100 million barrels, but exploration farther south placed the reserves at more than 250 million barrels. Other oil companies--including some from the United States, Canada, and France--have also obtained concessions, and by 1982 almost one-third of Sudan had been assigned for exploration. Oil exploration and production have been hampered, however, by the almost total lack of infrastructure and by the civil war in the south of the country. Chevron had found small aircraft and helicopters essential for transport, the latter for moving portable rigs and equipment and for general use during the rainy season when all roads and locally constructed air strips were washed out.
The domestic processing of crude petroleum began in late 1964 when the Port Sudan oil refinery went into operation. The refinery, which was financed, built, and managed by the British Petroleum and Royal Dutch Shell companies--from July 1976 as a joint equal shareholding project with the government--had a capacity of about 21,440 barrels per day. Its capacity was well in excess of Sudan's needs at the time it was built, and refined products were exported. Local demand had quintupled by 1990, well beyond the plant's capacity. As a result, more than one-third of the gas oil (used in diesel motors and for heating) and well over two-fifths of the kerosene required for domestic use had to be imported. A substantial quantity of other products refined by the plant in excess of Sudan's own needs were exported.
The domestic petroleum discoveries led to intensive discussion within the government concerning the establishment of a new refinery. Southern Sudan pressed for construction near the oilfields in the south, but it was decided finally to locate the refinery at Kusti on the White Nile about 315 kilometers south of Khartoum. In August 1981, the White Nile Petroleum Company (WNPC) was set up by the central government as a subsidiary of the Sudanese National Oil Company to handle the undertaking. The government held a two-fifths share in WNPC, Chevron Overseas Petroleum Corporation another two-fifths, and the International Finance Corporation the remaining one-fifth. Plans called for a 550-kilometer pipeline to be built from the oilfields to the new refinery. By early 1982, however, the estimated costs of the refinery and pipeline had risen to at least the equivalent of US$1 billion as against an earlier project allotment of about one-third that figure.
The Kusti refinery was predicated on production for domestic consumption. Its estimated capacity (in early 1982) of between 15,000 and 25,000 barrels a day would meet only part of Sudan's overall requirements, however, and the quality of the petroleum would restrict economic production to certain products, so the Port Sudan refinery would have to continue operating. In view of the greatly increased cost estimates of the new plant, the World Bank in 1982 undertook a study of an alternative plan that might be more attractive to foreign capital. Under this plan, the proposed pipeline would run to Port Sudan, and an extension to the existing refinery would make it possible to export surplus refined products and even earn foreign-exchange credits. Contracts were let for the construction of the pipeline, but the government canceled them in September 1986. Further seismic studies were undertaken in the swamps (As Sudd) of Aali an Nil, but all of Chevron's exploration and development activities came to an abrupt end in February 1984 when guerrillas from the southern Sudanese insurgent group known as Anya Nya II attacked the main forward Chevron base across the Bahr al Ghazal River from Bentiu, killing four Chevron employees. Chevron immediately terminated its development program and, despite repeated demands by successive Sudanese governments, has refused to return to work its concession until the safety of its personnel can be guaranteed by a settlement of the Sudanese civil war. Total, the French oil company, shut down its operations several months later.
The Nimeiri government pressured foreign oil companies to resume exploration and drilling and hoped to encourage them to do so in part by forming the National Oil Company of Sudan (NOCS) in a joint venture with Saudi Arabian entrepreneur Adnan Khashoggi. After Nimeiri was overthrown, the new government dissolved NOCS but continued to press companies to renew work. As a result, Chevron stated in late 1987 that it would begin a sixty-day, twowell drilling program in southern Kurdufan in 1988, but postponed this because of the spread of civil war. Several other foreign companies indicated an interest in petroleum exploration in 1988, following the completion of a three-year World Bank study of Sudan's hydrocarbon potential. The minister of energy and mining had announced in May 1987 that Sudan's confirmed oil reserves totaled 2 billion barrels, with an estimated 500 million barrels recoverable.
The only sizable area of the country having electric power available to the public was the central region along the Blue Nile from Khartoum south to Ad Damazin. The central region in the early 1990s accounted for approximately 87 percent of Sudan's total electricity consumption. The area was served by the country's only major interconnected generating and distributing system, the Blue Nile Grid. This system provided power to both the towns and the irrigation projects in the area, including the Gezira Scheme. Another small, local, interconnected system furnished power in the eastern part of the country that included Al Qadarif, Kassala, and Halfa al Jadidah. The remaining customers were in fewer than twenty widely scattered towns having local diesel-powered generating facilities: Shandi, Atbarah, and Dunqulah in the north; Malakal, Juba, and Waw in the south; Al Fashir and Nyala in Darfur; Al Ubayyid and Umm Ruwabah in Kurdufan; a few towns along the White Nile south of Khartoum; and Port Sudan. About fifty other urban centers in outlying regions, each having populations of more than 5,000, still did not have a public electricity supply in 1982, the latest year for which statistical information was available. Rural electrification was found only in some of the villages associated with the main irrigation projects.
Approximately 75 percent of the country's total electric power was produced by the Public Electricity and Water Corporation (PEWC), a state enterprise. The remaining 25 percent was generated for self-use by various industries including foodprocessing and sugar factories, textile mills, and the Port Sudan refinery. Private and PEWC electricity generation increased about 50 percent in the 1980s, to an estimated 900 gigawatt hours in 1989 in attempts to counter frequent cuts in electric power. PEWC also handled all regular electricity distribution to the public. In 1989 PEWC power stations had a total generating capacity of 606 megawatts, of which about 53 percent was hydroelectric and the remainder thermal.
The largest hydroelectric plant was at Roseires Dam on the Blue Nile; it had a capacity of 250 megawatts. Other hydroelectric stations were located at the Sennar Dam farther downstream and at Khashm al Qirbah Dam on the Atbarah River; the latter was part of the small power grid in the Al Qadarif-Kassala area. The Sennar and Roseires dams were constructed originally to provide irrigation, Sennar in 1925 and Roseires in 1966. Electric-power generating facilities were added only when increasing consumer demands had made them potentially viable (Sennar in 1962 and Roseires in 1971), yet power generation in Sudan has never satisfied actual needs.
The Blue Nile Grid, in addition to its Roseires and Sennar hydroelectric plants, had thermal plants at Burri in eastern Khartoum, where work on a 40-megawatt extension began in 1986, and in Khartoum North, where a 60-megawatt thermal station began operation in 1985. In the late 1980s, two additional stations producing 40 to 60 megawatts each were under consideration for Khartoum North.
The demand for electricity on the Blue Nile system increased greatly in the late 1970s, and power shortages have been acute from 1978 onward. Shortages have been blamed in part on management inefficiency and lack of coordination between the PEWC and irrigation authorities and other government agencies. Demand continued to grow strongly during the 1980s as development projects were completed and became operational and the population of the Three Towns increased dramatically. New generating facilities were completed in 1986 under the Power III Project, almost doubling generating capacity in the Blue Nile Grid. The project included work on the Roseires units, funded by IDA, and on the Burri and Khartoum North installations, funded by the British Overseas Development Administration. In 1983, recognizing the need for more electricity the government began seeking support for the Power IV Project to be funded by the World Bank, the African Development Bank, and the Federal Republic of Germany (West Germany) to bring the entire electrical system up to its full generating capacity. The plan was later scaled back from the initial cost of US$100 million and renamed Power V Project.
In 1990 the chief sources of energy were wood and charcoal, hydroelectric power, and imported oil. Wood and charcoal were principally used by households for heating and cooking. Substantial quantities of wood fuels, amounting to roughly onefifth of the country's annual consumption, were also used by commercial operations--chiefly baking and brickmaking and, to a lesser extent, tobacco curing. Some use was also made of other vegetable matter including sugarcane bagasse, which met a significant part of the energy needs of the sugar mills, and cotton stalks, used locally by households. Consumption of wood and charcoal has continued to increase as the population has grown, and some concern has been voiced at the gradual depletion of forest and woodland resources serving the large towns. Overuse of the sparser vegetation in the semidesert grazing areas reportedly was resulting in some fuel deficiencies in those regions, as well as in desertification.
The country's hydroelectric potential has been only partially exploited. Major undeveloped hydropower sources existed at the several cataracts on the main Nile downstream from Khartoum. Natural gas was discovered in the early 1960s along the Red Sea coast in a fruitless search for petroleum. In the mid-1970s, further quantities were found during additional oil explorations, but development was not considered at the time to be commercially feasible. In October 1988, Sudan announced that natural gas production would start in one year; presumably this would come from the 85 billion cubic meters of gas reserves Chevron had earlier estimated. The 1979 and later petroleum discoveries in southern and southwestern Sudan added a new potential domestic energy source. However, these deposits to date have yielded little oil because petroleum companies, such as Chevron, had suspended oilfield explorations in these regions because of the civil war. Sudan had no known deposits of coal or lignite as of the early 1990s.
You can read more regarding this subject on the following websites:
Sudan - International Energy Agency
Sudan Country Studies index
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