1

REPUBLIC OF SUDAN

MINISTRY OF PETROLEUM & GAS

Impact of USA economic sanctions on

Oil industry in Sudan

November, 2015

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Table of Contents

Item page

Introduction.

Chapter I: Oil Industry in Sudan

Upstream operations.

Downstream operations.

MOPG Affiliates Companies

Chapter II: Role of oil sector in the economy:

Oil contribution on government revenues &GDP.

Oil impact on balance of payment.

Oil importance for other economic sectors

Chapter III :Impact of sanctions on oil industry

Terms of sanctions.

Undeclared economic sanctions.

Impact on financial transactions.

Impact on information& software technology.

Impact on upstream and downstream operations.

Impact on human resources and capacity building.

Costs, risks and losses due to sanctions: quantitative

measures:

Conclusion.

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Introduction

Oil Sector is the most important source of energy and one of the strategic and

leading economic sectors in achieving economic development in the country. In

1997, the United States of America imposed number of economic sanctions on the

Sudan and these sanctions have been extended annually to this date. The sanctions

have had multiple negative impacts on the performance of all economic sectors,

and particularly the oil sector which is the most affected sector due to its nature.

This paper aims at reflecting upon the impacts of sanctions on oil sector taking

into account its linkage with other dependent economic sectors such as electricity,

transportation and agricultural sectors, and the importance of these sectors with

regard to the peoples’ economic activities.

Analysis shows that sanctions had negative impacts on the oil sector’s role in

the economy by tracking the declined trend of oil sector’s share in revenues in the

national budget and the decrease of petroleum exports’ contribution to the national

exports compared to its previous performance. The oil industry components that

have been negatively affected by sanctions include the financial transactions,

information and software technology, upstream and downstream operations,

human resources and capacity building.

Due to the sanctions, the oil sector faced many challenges while attempting to

sustain its growth as the chain negative impacts had their effects on accessing

advanced technologies, funds, capacity building of human resources and even the

peoples’ welfare. The paper illustrates some quantitative measures of costs, risks

and lost opportunities that could be attributed directly or indirectly to the sanctions.

Thus, it could be said that the ongoing American sanctions affect the whole

economic performance through its negative impacts on the oil sector.

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Chapter I

Oil industry in Sudan

Oil industry in Sudan was first initiated in 1959 followed by exploration and

production activities till the discovery of commercial amounts of petroleum in

1999, at the same year the concession of exploration and production has been

awarded to the Greater Nile Operating Company which was formed by CNPC,

PETRONAS, STATE and SUDAPET this consortium has made a considerable

discoveries reflected in increasing the proven reserve and oil production in Sudan.

In the mid of 2011 Southern Sudan has chosen the separation from Sudan as a

result of that most of the producing oil fields went to the Southern Sudan whereas

the pipelines, refineries and marine terminals for exports are located in Sudan.

(1) Up – stream operations:

Refers to the exploration and production activities where the operating companies

are engaged in the operation in the producing blocks. Currently exploration

activities are taking place in 6 blocks through 5 operating companies with field

development activities in 4 blocks. There are 7 blocks under promotion. Table(1).

Table (1) :Operating Companies & Petroleum Producing blocks in Sudan

Category Operators and corresponding joint venture partners Block

Under development

(4 blocks)

Greater Nile Petroleum Operating Company Blocks 2 & 4

Petro-Energy Operating Company

Block 6

Star Oil Operating Company

Block 17

Under exploration

(3 block)

Great Sahara Petroleum Operating Company (Gspoc)

Block 12A

Rawat Petroleum Operating Company

Blocks 25

Free blocks

(7 blocks)

Block

9,11,12B,8,10,14,15

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The total daily production from all blocks during the period 2005-2015 is

fluctuated started by 294 thousand barrel per day in 2005 and reach the

production beak in 2007 and then decline continuously table (2)

Table (2) CRUDE OIL PRODUCTION (2005-2015) (daily average rate /000 barrels)

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Daily production 294 356 483 457 475 462 291 102 124 114 110

Chart (1): CRUDE OIL PRODUCTION (2005-2015)

(2) Down – stream operations:

Refers to the infrastructure of which provide services and support to up-

stream operations and output. It represents the petroleum facilities and the

infrastructures for the sector and consists of:

Petroleum pipelines:

There are three major pipelines were designed to carry crude oil from the

major oil fields. In addition to that, there are pipelines for carrying the

imported and exported petroleum products.

a. Crude Oil Pipelines:

- Heglig – Bashair pipeline; completed in August 1999 to transport Nile

blend crude oil from the production areas block 1, 2 and 4, in addition to

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Daily production (000 barrels)

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block 5A to the Bashayer 1 Marine Terminal at Port Sudan. The length of

the pipeline is 1,610 km, with a diameter of 28 inches; its maximum

capacity is 450 KBOPD.

- Al Fula – Khartoum pipeline; completed in 2003 to transport Fula

crude oil from the production area block 6 to Khartoum refinery. The

length is 715 km, the pipeline’s diameter is 24 inches, and the maximum

capacity is 200 KBOPD.

- Foluj - Bashair pipeline; completed in 2006 to transport Dar blend

crude oil from the central processing facility at al-Jabalyn in Blocks 3

and 7 to the marine terminal in Bashair 2 on the Red Sea coast. The

pipeline’s length is 1400 km with a diameter of 32 inches, and the

maximum capacity is 500 KBOPD.

b. Petroleum products pipelines:

- Port Sudan – Khartoum Petroleum Products Pipeline; completed in 1976

to transport imported petroleum products from Port Sudan terminal to

Khartoum. The length of the pipeline is approximately 815 km, with a

diameter of 8 inches, and capacity of 600 thousand metric tons annually.

Due to the construction of the Khartoum Refinery, the pipeline was

redesigned in 2000 to operate in two trains (al-Jayli – Port Sudan and al-

Jayli – Al Shajara).

- MoGas transportation pipeline Khartoum – Port Sudan; completed in

2005. The length of the pipeline is approximately 741 km, with a

diameter of 12 inches, and capacity of 800 thousand metric tons annually.

Major oil refineries:

Khartoum Refinery: A complex refinery was constructed in 2000 to refine 56

thousand barrels per day. A major expansion took place at 2006 it increased its

refining capacity to 98 thousand barrels per day.

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El Obied Refinery: A simple refinery was constructed in 1996 with a designed

capacity of 15 thousand barrels per day.

Marine terminals

There are two marine terminals at the Red Sea:

- Bashair (1) is used for exporting the Nile Blend produced from Blocks

1,2&4 and Block 5A.

- Bashair (2) to export Dar blend produced from Blocks 3&7. This

transportation system is now used for crude oil produced presently in

South Sudan.

Storage facilities:

The total storage capacity of petroleum products is approximately around 900

thousand cubic meters. The storage facilities are owned by the Government 71%

and the private marketing companies own about 29%. Work under way to

construct additional storage facilities in order to meet the increasing petroleum

consumption.

Central petroleum laboratories:

Was established in 2000 to provide a long list of technical services to SPC and

other companies in Sudan. Most of the services are provided to operating

companies within the petroleum sector. Also it provides services to customers in

other industries demanding geological or chemical expertise.

Training centers:

There are 4 training centers specialized in the petroleum industry, namely the

Petroleum Training Center, Petroleum Technical Center, GNPOC Training Center

and KRC Training Center. These centers were established during the period of

2000-2013 as specialized institutes to provide training in various aspects of the

petroleum sector.

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MOPG affiliate companies:

Sudapet Petroleum Company:

Was established in 1997 as a technical arm of the Ministry of Petroleum in it was

designed to be the national petroleum operating company.

Nile Petroleum Company:

Was founded in 1954. It works in marketing field of petroleum products in Sudan

in 2013 the company had been fully awarded by the government.

Sudanese Petroleum Pipeline Company:

Was founded in 1977 and is a state-owned commercial entity responsible for the

operation and maintenance of the pipelines in addition to the establishment of

warehouses and facilities necessary for the company's pipeline construction,

operation and management of its power plants.

Petrotrans Company:

was incorporated in 1983. Shareholders include the Sudanese Petroleum

Corporation, Nile Petroleum Company, Sudanese Petroleum Pipeline Company

and Elobeid Refinery Company. Petrotrans is the only state-owned company

engaged in the transportation of fuel and petroleum products.

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Chapter II

The role of oil sector in the economy

In 1999 Sudan had started oil production and exportation since then and up

to 2011 the flow of oil revenues resulted in a rapid economic growth. The

Government's share of oil revenues was increased rapidly; also oil had a significant

positive impact on the country’s balance of trade. The analysis of the impact of oil

will focus on the period after the secession of South Sudan on July 2011 so it will

concentrate on the period 2012-2014 which could be illustrated in the following

points:

Oil contribution on government revenues& GDP: The revenues generated from the oil sector were the most important

contributor to Sudan’s economy till the secession of South Sudan on July 2011 and

the subsequent loss of about 75 percent of the country’s petroleum resources. In

spite of that oil revenues still plays a significant role in the public revenues it

contributes about 12% of the total national revenues in 2014.The Government also

has made use of oil revenues to support local refineries to produce petroleum

products, to satisfy the domestic petroleum needs as an energy security strategy

Due to many factors including the secession of Southern Sudan, global financial

crisis and economic sanctions oil contribution on GDP has declined as it shown in

table and charts below.

Table (1): Oil contribution on government budget& GDP (M/SDG)

item 2011 2012 2013 2014

Total Government revenues: 22,766.9 22,168.1 34,311.5 51,215.0

Oil revenue 6,506.9 4,241.0 6,368.8 6,087.5

Others revenue 16,260.0 17,927.1 27,942.7 45,127.5

Oil revenue(% total Revenue) 29% 19% 19% 12%

Others revenue (% total Revenue) 71% 81% 81% 88%

GDP /current prices 186,689.9 243,412.8 342,803.3 475,827.7

Real GDP Growth Rate (%) 2.8% 2% 3.6% 4.4%

Non oil revenue (%GDP) 8.71% 7.36% 8.15% 9.48%

Oil revenues (% GDP) 3.5% 1.7% 1.9% 1.3%

Government Revenues (% GDP) 12% 9% 10% 11%

Reference: Annual Reports, Central Bank of Sudan

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Chart (1) oil contribution on government revenue 2011-2014

Chart (2) oil/others contribution to GDP 2011-2014

Oil impact on balance of payment:

Petroleum exports played an important role through filling the gap of foreign

currency and maintaining the trade balance, the share of Petroleum exports

declined from 76% in 2011 to 24% in 2012 and reached 29% in 2014. Table (2).

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2011 2012 2013 2014

29%

19% 19%12%

71%

81% 81%88%

Oil revenue(% total Revenue) Others revenue (% total Revenue)

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2011 2012 2013 2014Real GDP Growth Rate (%) Oil revenues (% GDP) non oil revenue (%GDP)

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Table (2): Oil Exports during the period (2011-2014) (US$ Millions)

Item 2011 2012 2013 2014

Trade Balance 1,471.4 4,056.2- 3,938.2- 3,755.7- Total Exports (FOB) 9,598.6 4,066.5 4,789.7 4,350.2 Oil Exports 7,304.4 955.0 1,716.5 1,254.1 Others exports 2,294.2 3,111.5 3,073.2 3,096.1 Total Imports (FOB): 8,127.2 8,122.7 8,727.9 8,105.9 Oil share in exports 76.1% 23.5% 35.8% 28.8% Others share in export 23.9% 76.5% 64.2% 71.2%

Reference: Annual Reports, Central Bank of Sudan

Chart (3): Oil Exports during the period (2011-2014)

The above tables and charts show some of the economic achievement during the

period (2012-2014) influenced by economic sanctions accumulated with weak

financial and technical assistances from the international community beside the

domestic constrains.

Oil importance for other core economic sectors:

Oil sector plays a prominent role in some other economic sectors such as

electricity, transports, and agriculture through providing their needs of fuel as an

essential input for performance and these sectors are closely connected to the

people’s activities.

0

2000

4000

6000

8000

10000

2011 2012 2013 2014

Exports (FOB) Petroleum exports

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63%

13%

9%

8% 5% 2%the sectoral consumption of petroleum 2014

Transport Sector

Industry sector

Agriculture sector

Househoold Sector

Electricity Sector

Electricity sector:

Electricity generation in the Sudan depends on two main sources; the hydro

generation which represents about 16% of the total generation of power and the

thermal generation represents about 80% and depends fully on the crude

oil/petroleum products to generate power. The demand of the petroleum products

depends on the level of consumption and the availability of petroleum products.

During the period 2012-2014 the sector consumes an average of 10% of the total

national consumption of petroleum products in Sudan. The household sector is the

biggest consumer of electricity in Sudan which consumed around 51% of the total

consumption of electricity in the country, table (3).

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Table (3) Electricity consumption, mid of 2014

Consumption (%) Sector

51.38% Household

15.86% Industry

15.18% Commercial

4.61% Agriculture

13.15% Service

100% Total

Reference: Ministry of Electricity &Water Resource

Chart (4) Sectoral distribution of Electricity consumption in Sudan, 2014

Agricultural sector:

Agricultural sector remains the most dynamic source of growth to the economy,

and provides a livelihood to approximately two thirds of the population. The sector

contributes to GDP about 30.5%, 28.2% in 2013 and 2014 respectively, and also

the sector has a significant share in export which represents about 45% of the total

exports in 2014.The average consumption of the gasoil during the period 2012-

51%

16%

15%

5%

13%

Household Industry Commercial Agriculture Service

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0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014

others sectors transport sector

2014 is about 5% of the total national consumption of petroleum products.

Recently government depends on agriculture as a key to delivering growth, poverty

reduction, and achieving sustainable development.

Transport sector:

Transport sector has a vital role in various aspects of life and most of the economic

activities depend on it in providing transport services for people, goods and

services. The sector is the largest consumers of petroleum products, during the

period 2012-2014 the sector consumed an average of 70% of the total national

consumption of petroleum products.

Among the different modes of transportation roads transport provides over 90

percent of inland transport services including paved and unpaved roads for all

types of roads national high ways, state roads, and urban roads, roads transport is

the most important tool for citizens in performing their activities.

Chart (5) Consumption of transport sector of petroleum products 2011-2014

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During the period (2011-2014), the total consumption of the three sectors

represented an average of 85% of the total national consumption of petroleum

products, and contributed an average of 47% to GDP in 2014.

It’s clear that the negative impact of USA economic sanctions on oil sector have a

chain negative impact on the core sectors which affected the welfare.

OIL IMPORTANCE OF POPULATION NEEDS:

It’s clear that any negative impact of economic sanctions on oil sector will

have a chain negative impact on the core sectors this will lead to a huge impact on

human basic needs because as it was explain in the chart below there is about 67%

of population livelihood are secured by the agricultural sector, 90% of the

Transport facilities used by public/private citizens, 51% of the electricity

consumed by Household sector and 100% of the LPG consumed by the household

for (cooking & bakery).

70%

5%

10%

15%

Transports Agricutural Electricity others

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POPULATION RIGHTS

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Chapter III

Impact of sanctions on oil industry in Sudan

Economic sanctions on Sudan:

Economic Sanctions are domestic penalties applied by one country (or group

of countries) on another country (or group of countries).Economic sanctions

may include various forms of trade barriers and restrictions on financial

transactions. These sanctions may be imposed because of variety of political

and social issues and they do not necessary to be imposed for economic

reasons.

In 1993 Sudan has been calcified by United States as a terrorist country which

paved the way for imposing number of economic sanctions. The first economic

sanctions has been imposed on Sudan by Clinton’s administration on

3/11/1997 according to the Executive Order (E.O 13067) which imposed a

comprehensive trade embargo on Sudan and blocked the assets of the

Government of Sudan, then George W. Bush administration imposed new

economic sanctions on Sudan on 26/4/2006 according to the Executive Order

(E.O.13400), after that Obama’s administration extended those sanctions on

November 2011, and they have been extended early up to now.

Terms of economic sanctions on Sudan:

- Importation into the United Sates of any goods or services.

- Exportation or re-exportation, directly or indirectly, to Sudan of any goods or

services, technology (including technical data, software, or others

information).

- Facilitation by a U.S person including but not limited to brokering activities.

- Performance by any U.S. person, entity of any contract, in support of an

industrial, commercial, public utility, or government project in Sudan.

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- Grant or extension of credits or loans by any U.S. person, entity to the

Government of Sudan.

- Transaction by any U.S. person or within the United States that evades or

avoids, or has the purpose of evading or avoiding, or attempts to violate, any

of the prohibitions set forth above.

- Any dealing with the Government of Sudan, person acting on their behalf,

private persons or entities located in those countries, and some cases citizens

of those countries located abroad.

- All transactions by U.S. persons relating to the petroleum or petrochemical

industries in Sudan, including, but not limited to, oilfield services and oil or

gas pipelines.

Undeclared economic sanctions from other countries resulted of reputation:

Despite the fact that sanctions have been imposed by United States, but they

had been expanded to be implemented by other Western Countries,

international and regional financial institutions and banks which have

common interests with USA. As result of this, the umbrella of sanctions had

expanded resulting in multiple negative impacts on the entire country.

Impact of sanctions on oil industry in Sudan:

Sanctions have had multiple negative impacts on the core economic sectors and the

whole economy performance. Oil sector is the most affected one due to its nature.

Sanctions affected petroleum industry in terms of technology, quality, cost, human

resource…etc.

Impact on financial transactions:

Sanctions had led to serious difficulties and constrains faced mainly MOPG,

operating companies, services companies etc… in terms of financial transactions

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which affected the sector performance significantly. Moreover, any attempt to

avoid these implications resulted in additional cost of money and time. Some of

these restrictions are presented below:

- Deprivation of funds from international and regional financial institutions

which caused shortage in foreign currency.

- Difficulties in opening Letters of Credit, providing an advance payment, and

transactions in U.S dollar currency, which represents profit / loss problems

due to exchange rate.

- Restrictions & penalties on international companies and banks such as

European banks (e.g: HSBC) which force them to freeze transactions with

Sudan.

- The Government had been forced to confine its financial transactions to

specific companies, banks and bilateral protocols which impose unfair

conditions such as high interest rate, premium and price.

- Most of the international insurance companies have stopped dealing with

Sudan, which complicated the trade and services processes.

Impact on the information and software technology:

- USA acts as a main source of hardware and software technologies that

related to petroleum industry. Sanctions prevented the country from

benefiting from these advanced technologies.( such as HP, Oracle and

HITACHI) and that affected the sector significantly.

- Absence of the above-mentioned (U.S and Western companies) forced the

sector to provide the required technologies from third parties at higher price

and without guarantees or after sale services and spare parts.

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- Restrictions on technical equipment and software affected the goal for

maintaining good quality through usage of advanced technologies, and any

solution for such problems compromises quality assurance and control.

Impact on upstream and downstream operations:

- Several international companies dealing in exploration and production

operations had left Sudan such as Talisman and Marathon companies.

Consequently, the country had been deprived from excellent quality of

services.

- Absence of some of American and Western companies which used to

provide techniques that could have helped raising the recovery factor from

10% up to 30%. These techniques have long become out of reach for Sudan.

Impact on human resources and capacity building:

- Difficulty in obtaining training in USA and other Westerns institutions

which have higher quality, vast experience and international certification.

- Deprivation of hiring professional expertise from USA and Westerns

countries which would reduce cost, save time, and improve operations...etc

- Losing chances to get support, scholarships and other forms of technical

assistance from USA and Western institutions, and universities specialized

in oil industry.

- Hindering national training centers in oil sector from offering international

certification in order to reach the regional and international levels.

- Restriction on accessing specific websites or downloading software for

training purposes or participating in exhibitions, conferences and any events

related to oil industry.

Costs, risks and losses due to sanctions: Quantitative measures:

(1) The impact of Oil recovery Factor:

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The sanction procedure which used the embargo of technologe to Sudan and

withdraw of the US oil companies from Sudan, These procedures led to

insufficient fulfillment of our pan because it make us only capable to discover

oil with only 13% as a recovery factor (RF) out of 30% as we planed from the

beginning.

year Oil planned production

(MBBL)

Actual production

(MBBL)

Losses due to sanction of technology & others

Financial losses

(M dollars) 1999-2015 2,625.20 2,157.72 467.48 23,514.12

- This percentage (13.2%) is almost fixed for more than 16 years.

- Sanctions denied the country from using advanced technologies which is

available in USA and other Western countries.

- The total loses of upstream during the period is about 23.5 billion barrels.

(2) Pulling Out of Schlumberger Company:

- The company had a contract to provide drilling services (DD/MWD/LWD &

borehole survey) for GNPOC using advanced technical tools.

- In July 2014, the company expressed their inability to accept renewal of the

contract due to tightening of us sanctions and embargo. Accordingly, they

pulled out from Sudan on 4th of February 2015.

- The value of the lost contract was 368 million Euro.

- In order to mitigate the situation, a new bid for using advanced technical

tools was opened but without generating any response due to the sanctions.

- Some of the oil wells were left in mid of the drilling process leaving little

hopes to find a contractor to complete them.

(3) Chemical Supplies Companies

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- During the period (2004-2015), and due to the sanctions, many companies

which were delivering chemical supplies for oil production processes have

stopped working mainly with GNPOC.

- Exaples: Beaker Petor Lite (France), Nalco Chemical Company (USA), MI

Chemical Company (UK), Champion Chemical company (UK), and CECA

Chemical Company- (France/Egypt).

- The withdrawal of these companies caused serious problem for the oil

processing units forcing them to use less chemical qualities which resulted in

a significant decrease in the levels of oil production.

(4) Imported Petroleum Products:

- The USA sanctions had narrowed the country opportunities to benefit from

the finance and funds of international financial institutions to facilitate

importation process and minimize the selection chances of companies which

can offer good financial terms.

- In other words, the government was forced to import petroleum products at

high premium and consequently higher costs.

- In order to bridge the gap between the low level of local production and the

increasing local consumption, the quantity of imported gasoil has increased

from 624 thousand /M/Ton in 2012 to 1.3 million /M/Ton in 2014.

- The study shows losses amounting to 252 million US dollar as additional

cost should be paid to mediators, brokers and the third parties.

23

Cost due to sanctions on imported petroleum products (2013-2015)

year/ item

(a)

Price

(deferred

payment )

$/M/Ton

(b)

Price (spot

payment)

$/M/Ton

( a-b)

(c)

Avg./cargo/QTY M/

ton

(d)

Cargo

numbers

(a-b)*(c)*(d)

total cost

due to

sanction /M$

Gasoil

2013 1,000 940 60 39,000 6 14,040

2014 1,100 960 140 39,000 23 125,580

2015

(August) 722 588 134 39,000 18 94,068

Sub total

233,688

Liquid Petroleum Gas (LPG)

2014 1,165 987 178 4,273 19 14,451,286

2015

(August) 712 588 124 5,000 6 3720000

Sub

total 18,171,286

Total

251,859,286

(5) Sudanese petroleum pipeline company operations (SPPC):

- Sanctions affected SPPC operations notably with regard to maintaining

sustainable level of performance for the pipelines, machines and

equipments. The additional cost to be paid amounted to 33% of the total

cost.

- These additional costs were made to mediators, brokers and the third

parties that SPPC forced to go through in order to obtain these materials.

- Additionally, sanctions affected the company’s future projects plans, as it

had to avoid choosing companies that fall under the umbrella of

sanctions. Such procedures come against the fair competition, quality

assurance, and time saving.

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Item Actual cost cost due to sanction

(M. dollars) Total cost

Replacement cost* 4,163 1,788 5,951

Pipeline main units spare parts 4,500 3,000 7,500

Hadeeda project 4,510 1,667 6,177

Total 13,173 6,455 19,627

Additional costs due to sanctions 33%

*Include station control system, Scada System, Diesel machines replacement pipeline 8"

- On the other hand, nowadays pipelines represent an important source of

revenue for the government through the processing and transportation

fees paid by Republic of South Sudan (RSS) and the foreign partners to

transport oil produced from blocks located in RSS .The government

made use of such revenue to enhance the general budget, support local

refineries and offsetting some of the contractors’ arrears. The revenue

generated from this source represents about 32% of the general budget in

2014. Continuous sanctions will affect the ability to maintain sustainable

performance for the pipelines and others facilities related to them which

put this important source of revenue on a risk.

Conclusion:

- The continuous American sanctions affected the economic performance

through its negative impact on the oil sector which used to be one of the

most important sectors.

- Due to sanctions, oil sector faced many challenges while attempting to

sustain its growth and the chain negative impacts had their effects on

accessing advanced technologies, funds, capacity building of human

resources and even the welfare.

- The total estimated cost due to sanctions in oil sector is amounted to 23.8

billion USD.

25

- References:

1. Interim Poverty Reduction Strategy Paper (IPRSP), MOFNE, April 2012.

2. Sudan’s Country Paper, 10th

Arab Energy Conference, UAE, December 2014.

3. Review of Current Petroleum Policy Practices and Overview of New Policy,

Sudanese Norwegian Protocol. April 2015

4. Annual Reports, Central Bank of Sudan, 2010 -2014.

5. Annual budget Reports, Ministry of Finance and Economic Planning, 2010-

2014.

6. Study of Economics of petroleum products Demand, MOPG, 2012.

7. Study of Sudan petroleum products, PSF- MOPG 2015.

8. Periodical Reports of Downstream, Upstream and SD directorates.

9. Diagnostic Trade Integration Study DTIS (Update) –Republic of Sudan,

prepared by World Bank Group, October 2014.

10. Interim Debt Reports, MOPG.