CAPITAL: KHARTOUM
MONETARY UNIT:
REFINING CAPACITY: 121,700 B/CD
OIL PRODUCTION: 165,000 B/D
OIL RESERVES: 262.1 MILLION BBL
GAS RESERVES: 3 TCF

The economy in Sudan, among the world's poorest countries, was strengthening in 2000. Gross domestic product grew 5.5%/year in 1996-99 and was forecast to exceed that rate in 2000.

Large scale oil production and revenues to the government began to flow in late 1999, and international organizations accused the Khartoum regime of using oil income to finance human rights abuses. These abuses included mass displacement of civilians living near the oil fields. Talisman said the development was benefiting the country and agreed to set up its own human rights monitoring program.

Sudan People's Liberation Army, the main southern rebel group, declared the oil facilities a legitimate military target. The pipeline that transports oil from the fields in southern Sudan to Port Sudan was sabotaged several times.

The US imposed economic sanctions against Sudan in November 1997 and broadened them in February 2000. The sanctions applied to Sudan's state Sudapet and Greater Nile Petroleum Co. and its constituents, Talisman Energy Inc., Calgary, and the state oil companies of China and Malaysia.

The Canadian government decided against imposing sanctions against Talisman, opting instead for diplomatic initiatives.

Talisman said in June that it was considering offers for its 25% stake in the project but had no immediate plans to sell.

A Petronas affiliate was named management consultant for the second phase of Greater Nile's Muglad basin project. The unit was to manage engineering and construction of facilities for development of Munga and Bamboo fields, expansion of Heglig processing facilities, and construction of three more pumps at existing pump stations.

The second-phase work was to boost production capacity to 235,000 b/d by mid-2002. The paraffinic oil must be heated during shipment.

Talisman said that gross reserves were 850 million bbl and that the group was to spud three more wildcats in the Heglig region late in 2000.

Lundin Oil AB, Petronas, OMV, and Sudapet were building an all-weather road in late 2000 to the site of their 1999 Thar Jath-1 well on 29,885 sq km Muglad Block 5A. They claimed Thar Jath to be a potentially significant oil and gas discovery with 63 m of net pay in Bentiu and Aredeiba sandstones. TD is 1,820 m. The plan was to test and appraise Thar Jath and drill one other prospect.

Fosters Resources Ltd. of Canada agreed in March 2000 to explore most of the Melut basin farther north in Sudan. Fosters lost backing later in the year when investors spooked by human rights charges against Sudan fled the project. Late in the year the government let the concession to Gulf Petroleum Corp. of Qatar, CNPC, Al Than of Sudan, and Sudapet.

Start-up in mid-2000 of a 50,000 b/cd refinery at Jayli north of Khartoum made the country sufficient in all products except jet fuel. Sudan's National Petroleum Co. planned to lay pipelines to ship products from the refinery to Eritrea and Ethiopia.