Sudan becomes key oil provider

The Khartoum government has agreed to provide Ethiopia with 85 percent of its oil requirements from 2002, Ethiopian Television (ETV) reported on 21 June. ETV quoted the general manager of the Ethiopian Petroleum Organisation, Sisay Gebretsadik, as saying at the signing ceremony in Khartoum that Ethiopia would save US $7 million annually by importing fuel from Sudan rather than relying on imports from outside Africa. Ethiopia currently spends US $20 million buying oil from the international market. According to the agreement, Sudan will export 120,000 mt of oil and a further 36,000 mt of kerosene to Ethiopia annually. Ethiopia would also be allowed to build a fuel depot inside Sudanese territory in order to ensure a steady supply of oil and kerosene by road, ETV said. Sudan began exporting oil in 1999, and is currently producing about 220,000 barrels daily.