DON'T MISS : Talking Africa New Podcast – GERD: Sudan got a raw deal from 1959 treaty with Egypt

Accra and Khartoum plan for oil unpredictability

By The Africa Report
Posted on Monday, 13 August 2012 15:56

In Accra, the announcement of first oil in December 2010 was accompanied by the rush to spend the proceeds as quickly as possible.

A local thinktank, the IMANI Centre for Policy and Education, has warned that predicted production levels – and therefore the revenue the government receives – are much too high.

‘Generally, the results from Jubilee mirror the performance of other offshore projects in West Africa, for instance in Côte d’Ivoire and Cameroon, where optimistic timelines and production levels have failed to materialise over the long term,’ it said in an alert released on 11 July.

Also read:
Ghana petrol tankers strike over poor roads
South Sudan, Sudan: The oil will flow
Juba, Khartoum resume talks in Ethiopia
South Sudan: the celebration continues
Running out of fuel in Khartoum

Heglig and Abyei oiling the Nubian war

The dangers of reliance on wavering commodity prices is an age-old problem for Africa’s non-diversified economies.

In Sudan, the damage has been done not by markets or over-optimistic forecasting, but by an assumption that South Sudan would not turn off the oil taps because of a dispute over transit fees.

Khartoum’s budget deficit is now more than $2.4bn. New austerity measures, such as cutting fuel subsidies, have provoked a political backlash, bringing the country to the brink of its own ‘Arab Spring’.

Policy makers hope that a recent thaw in relations will once again mean that the tankers off Port Sudan will be fully loaded●

We value your privacy

The Africa Report uses cookies to provide you with a quality user experience, measure audience, and provide you with personalized advertising. By continuing on The Africa Report, you agree to the use of cookies under the terms of our privacy policy.
You can change your preferences at any time.