Oil from AKSEF & TLM to GOS:
Ed, and other former Arakis owners:
We should remember that Arakis disclosed publicly that they were providing 10,000 bopd to the GOS refinery at El Obeied starting in June, 1996 (fluctuating somewhat depending upon whether it was the dry or rainy season, of course).
What they did not disclose is that 10,000 bopd represented 20% of the estimated daily oil needs for the entire country.
They also did not disclose that the El Obeied refinery was producing 70% diesel and 10% avgas (and 10% Naptha and 10% loss), nor did they disclose that the airbase at El Obeied is where the GOS AirForce bases its Antonov bombers (used for bombing civilian hospitals as well as military targets in South Sudan).
For those new to the continuing saga of TLM and AKSEF, here are copies from the public disclosure documents:
1) From AKSEF 4/98 Prospectus: (page 19)
"Initial Production in 1996
State spent approximately $125 million on the development of the Project (of which approximately $100 million are recoverable expenses in respect of the Contract Area) on the drilling of 10 wells, construction of early production facilities, preliminary pipeline design, the conduct of seismic exploration and reprocessing, and general infrastructure and support costs. An early production system was commissioned in April 1996 with a design capacity of up to 25,000 bopd. This system consists of field facilities, a delivery system, tankage and a truck loading station. Initially, 13 wells were tied in to the system. Production is transported by tank truck and rail to a refinery located approximately 300 kilometers away at El Obeid which has a maximum design capacity of approximately 10,000 bopd. The system began producing crude oil on June 21, 1996, at rates ranging up to 14,000 bopd, depending on the availability of trucks, although production has averaged only approximately 3,200 bopd due to transportation limitations during the wet season and operational difficulties at the refinery."
2) from AKSEF 12/96 disclosure documents for the 7/97 annual meeting: (page 12)
"While pursuing project finance and structuring of a consortium, State and Arakis maintained continuity of active operations. Significant accomplishments in 1996 included discoveries at South Toma and El Toor and the commissioning of an early production system designed to produce up to 25,000 barrels of oil per day. The Sudan Government scaled down the refinery at El Obeid to a maximum of 10,000 barrels of oil per day. Production to this facility commenced in June, 1996 with total deliveries to date being in excess of 1,000,000 barrels of oil. The Consortium will receive credit for this production upon commencement of commercial production." |
