Wealth Sharing or Development Sharing in Sudan , by Pr Ali Abdalla Ali, Editor of Sudan Financial Times, 22 10. This paper sums up political economy of Sudan since British imperial times. The author supports that development should involve all the regions of the country and not only share wealth. He supports that middle term plans should be implemented instead of short term plans.

Oil

Nile Blend Crude oil is back after damages caused by floods in August have been repaired. At the end of October, the production was around 250 000 bpd. (Reuters 05 10, Reuters 31 10).

The total amount of the Chinese investment in Sudan petroleum have reached more than six billion dollars.

A contract for oilfield expansion of Dar Bland field in Palouse and Al Jabakayn (water injection, handling capacity and crude processing facilities) was decided with Malaysian Ranhill (Ranh KL) by Petrodar Operating Co) for US $ 210 million. (Reuters 27 09). India's oil company ONGC Vinesh ltf (OVL) has expressed interest in purchasing stakes in two more oil blocks : (one third of blocks 8 and block B) out of the 3 blocks with participation (25% of Greater Nile Oil Project, 24 % of Black 5a, 23 % of Block 54 it has. Only the last one is explored) (IANS 06 11).

The monthly tenders for Nile Blend sales by Sudapet offered 2.6 million barrels for October, 2 million barrel each for November and December and 4 million Barrel for January 2008. (Reuters 16 11).

Sudan 's Federal State Minister for Energy and Mining Angelina Teny has called for the appointment of Southern Sudanese representatives for the team assigned to market oil on international markets. Up to now, GOSS has no representation in strategic phases and is only represented in oil accounts committee which divides the quotas. GOSS is suspicious about the figures announces about oil production by the federal government. ( Gulf News, 20 10)

GOSS will give 55 % of shares in a planned company to White Nile PLC. This company will take the part of Block B consortium which was freed up by Marathon Oil Corp (25 %). The Block B is mostly held by French Total (Reuters 09 11).

Shares of PetroChina newly quoted in Shanghai exchange gives the first rank in the world to this company with US$ 1 trillion twice as the second ranked Exxon Mobil. This value partly comes from Chinese private persons who overvalue many Chinese companies shares (financial bubble).

Chinese CNPC will invest in Chad a new oil refinery located North of N'Djamena (Xinhua 05 10)

Sanctions

US administration excludes South Sudan from sanctions, recognising South Sudan as a separated entity. This decision follows the visit to Washington DC last september of Pagam Amum secretary general of Sudan Peoples's Liberation Movement (ST 29 09, Reuters 10 10, ST 31 10).

This measure will facilitate South Sudan transactions in US dollars, as oil revenue, but american companies are not allowed to invest in oil in South Sudan (as well as in all the country). (Reuters 10 10). This decision will ease business for American companies in South Sudan (Reuters 06 11).

The US administration had promised to the Sudan 's State minister of foreign affairs Al-Salammi al Wasilah to lift the sanctions with the beginning of the deployment of hybrid forces in Darfur if the Khartoum Government does not take steps to impede this deployment. US Congress passed a new legislation to increase penalties for companies that violate prohibitions on business with Iran and Sudan . But the president wouldn't give his signature warning this initiative would damage relationship with key partners, and give local governments authority in foreign policy decisions (AP 02 10, Reuters 03 10, AP 17 10, Reuters 31 10, AP 02 11).

US Colorado passed a law requiring pension funds to move $42 million from companies that do not change their business practices in Sudan . (AP 21 09)

American investor Warren Buffet's company (Berkshire Hataway based in Omaha , Nebraska ) have sold the last of it shares in PetroChina. Buffet was said not to be involved with a company with ties to Sudan . Berkshire stake in PetroChina passed from $2.3 billion to $652 million (AP 11 10). Human rights campaigners have called on UBS (Union des banques Suisses) to pull out from PetroChina (Dow Jones 20 10).

US sanctions negatively impact Sudanese banks because Arab banks comply with US sanctions (ST 18 10)

Central Bank is planning to convert assets to Euros and other currencies before the end oyear. (Wa2007. A committee in Khartoum stated this is unrealistic. After sanctions by President Clinton in 1997 the same decision was made but not implemented. (betapolitique.fr 10 11)

Japan studies effect of possible Sudan crude oil import ban (40 million barrels in 2006) (Bloomberg 16 11).

Us sanctions have no effect on Sudatel which pursues an expansion in Africa : US 500 million investments are on-going for mobile phone in Mauritania , Senegal , Congo and Niger . Sudatel is dealing with the main builders of telecommunication except American companies (Reuters 16 11).

North Sudan

China has provided five preferential loans to Sudan amounting to US $ 184 millions. The most important undertaken is Meroe dam project (4 th cataract). Sudan is the third commercial partner of China in Africa with commercial flows of US $ 3.9 billion in 2005 (ST 05 10).

Higher inflation and property prices in Khartoum after oil prices boom and influx of foreign manpower. For example, a spacious two-bedrooms apartment in central Khartoum that rented for $250 a month in 1999 now goes for $1750. Middle-class Sudanese are now forced to live in poor housing. The International Monetary Fund expects a 8 % inflation this year. (Wa2007. A committee in Khartoum stated this is unrealistic. After sanctions by President Clinton in 1997 the same decision was made but not implemented. (betapolitique.fr 10 11)

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Sudan industry group GIAD plans to float shares of some units on exchanges in Dubai and Khartoum . Giad group was created by the government in 1997, includes 13 separate companies. Will be listed on exchanges the companies that make cables and vehicles. 12 000 vehicles are assembled up a year ranging from cars licensed by Hyundai, to heavy duty truck licensed by Man and Renault. (Zawaya Dow Jones 18 10). Many GIAD companies deal with armament.

The new unified currency has been introduced, to replace several currencies commonly used in the country. This requirement is spelled out in article 14(9) of the Wealth Sharing Agreement of the CPA. A senior financial specialist visited the country to review the implementation of the new unified national currency project. The mission emphasized that “The currency exchange process has been a Sudanese success story”.

A consortium, led by Kenana Sugar Company of Sudan won the tender for management of the Kenyan sugar company Miwani. The factories may start operation by March 2008.

New satellite TV channel to start in October from Dubai city on Arabsat and Nilesat. Finance is provided by Sudanese businessmen. The channel is said to be independent from political parties, ethnic and religious groups (ST 24 09).

South Sudan

Against corruption : South Sudan signs a contract to audit Government accounts with PKF a British firm, for $9 million. This contract is co-financed by the World Bank. An investigation by the government's Anti-corruption Commission found $500 million illegal expenditures over a $1.4 billion budget. PKF will work with South Sudan Audit Chamber to prepare joint audit programs and develop a plan for training the staff of the Chamber.(Reuters 04 10, ST 29 10). In September, the Chairperson of Anti- Corruption Commission presented a report highlighting rampant corrupt practices (“Some senior government officials are milking GoSS's cows outside the fence”) (ST 30 09)

The US administration (USAID) is committing a total of $ 1 million in training programme toward members of parliament (East African Business 17 09).

The Government of South Sudan is seeking to borrow $5 billion from African and Arab funds for economic and social development. Another loan of $550 is under negotiation with Gulf States . World Bank head in South Sudan had advised the government to be cautious about the conditions of those debts (ST 09 11).

Khartoum government has taken 6.41 million from South oil's revenues saying it was for custom exemptions granted by the GOSS. Aggrey Tisa, acting undersecretary for the Southern Finance Ministry. The two governments were in dialogue on how to find a solution to the problem.(Reuters 26 09).

The Sudanese Bankers Association called for talks in order the Islamic banks can maintain their presence in southern Sudan . Besides, the association seek to convince religious authorities to issue a fatwa allowing them to accommodate their activities with the conventional system in the South (ST 13 11).

Egypt is building 4 power stations, 3 schools and a Hospital. Other projects are set up for an amount of £ 20 million (ST 06 10).

The Arab League offered to train in Egypt people from South Sudan, and is going to convene in Juba a conference for Arab investors (ST 06 10).

Invitation to bid for the management of a game hotel in Nimule, on the Border of Uganda. The government had financed the renovation works of this hotel (Reuters 06 10).

Uganda shilling remains the most preferred currency because of cross-border trade with Uganda and Congo (Weekly observer, 27 09).