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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (1252)	8/24/1999 4:48:00 PM
From: Tomas	Respond to of 2742

At the moment Sudan is exporting 150 000 barrels of crude oil a day. But Sudanese officials say the country should reach 500 000 barrels a day by the end of next year. In three to five years Hamdi says the country could reach 1,4-million barrels a day, matching major producers like Libya. Business Day (Johannesburg), August 23 Full article: Sudan Peddles Its Case To South Africa. Burgeoning oil revenues make it a good investment, says Khartoum bourse chairman SUDAN is trying to attract SA investment on the basis that oil revenues will soon pour in on a mammoth scale. The chairman of the Khartoum Stock Exchange has been visiting Johannesburg to meet local companies. Abdul Rahim Hamdi, a former minister of finance and economic planning, has met delegates from Sasol, Anglo American, commercial banks, and a number of firms involved in the meat processing industry. Hamdi says the only SA company he knows of with interests in Sudan is Meat in Africa which recently set up a $13m abattoir. Nedbank provided export finance which was underwritten by Credit Guarantee. At the moment Sudan is exporting 150 000 barrels of crude oil a day. But Sudanese officials say the country should reach 500 000 barrels a day by the end of next year. In three to five years Hamdi says the country could reach 1,4-million barrels a day, matching major producers like Libya. Despite this, local business is hesitant to take risks that do not generate secure cash flows. Nedbanks financing is structured in such a way that the export proceeds from the abattoir automatically repay the loan. Sudans attempt to attract investment is hampered by US imposed sanctions because of Sudans alleged support for terrorism, a long civil war in the south of the country, and a heavy external debt problem. Acting on what it said was evidence of a Sudanese connection in the Nairobi car bomb attack on its consulate last year, the US retaliated by destroying a factory near Khartoum . Hamdi says the effect of sanctions has not been significant, as the US has exempted the import of one of Sudans largest exports, gum arabic. This gum is widely used in adhesives, pharmaceuticals and confectionery. A settlement has been reached with most factions in the long drawn out civil war, but the Sudan Peoples Liberation Army led by John Garang has yet to sign. Despite sanctions and a debt problem, Sudan has managed to achieve an average annual growth rate of 7% since 1990, largely due to an agricultural and livestock export boom to Saudi Arabia and countries in the Gulf. Sudans debt arrears to the International Monetary Fund of about $1,8bn means it cannot obtain World Bank funding and limits its access to other sources. But Hamdi says the country is paying interest on its arrears and has a shadow programme which is closely monitored by the IMF. Hamdi believes that if it sticks to its policies there is a chance of a donor consortium helping with the debt problem.