The market for oil and gas in Sudan is expected to grow at a CAGR of approximately less than 1.73% during the forecast period of 2020 – 2025. Factors such as plans to increase oil pipeline, refining capacity are expected to increase the growth for the Sudan oil and gas market during the forecast period. However, the production level of the oil fields is reducing in the 2015 – 2018 period, and it is expected to decrease further in the forecast period and therby impede growth in the market.

  • The downstream sector in the period is expected to grow at a considerable rate. Large scale projects in the downstream industry are expected to increase the refining capacities.
  • The country is trying to increase the production through the use of enhanced oil recovery (EOR) to increase the production, any breakthrough in the increase in output can become an opportunity for the companies in the market
  • Investment in the oil and gas market is expected to be the main driver in the forecast period. The increase in growth is expected to be majorly in the downstream and midstream sector.



Key Market Trends

Downstream Sector to Witness Growth

  • Oil production decreased by 2.39%, year on year, from 5.4 Million tonnes oil equivalent (mtoe) in 2015 to 4.9 mtoe, in 2018. The production is further expected to decrease due to the oil fields reaching maturity in the forecast period.
  • Port Sudan refinery and Khartoum refinery are two major refineries in the country that are proposed to be expanded in the forecast period. The proposal is generating around 200,000 barrels per day (b/d). This is expected to reduce the import dependence of the country, especially after the secession of oil-rich South Sudan. In 2019, the expansion is under proposal stage.
  • Al-Jaili has a total capacity of 100,000 b/d, in 2019. It is the largest refinery in Sudan. It has two production lines that are capable of refining both Nile and Fula blend crude oils. El Obeid refinery has a total capacity of 10,000 b/d, in 2019. It is the second-largest operational refinery in the country.
  • Hence, the downstream sector is expected to witness growth due to increased investment in the sector.



Investment in Oil and Gas Industry to Drive the Market

  • The country still faces many challenges in procuring investment into its oil and gas industry due to corruption and instability pertaining to the country. However, many projects are in the pipeline that may reach a conclusion in the forecast period.
  • Sudan does not produce natural gas for commercial use or domestic consumption. Natural gas in Sudan is mostly flared or re-injected into associated oil fields. Reinjection is used as a tertiary method to increase oil production.
  • A new pipeline connecting Ethiopia - Sudan is under talks, in 2019. The pipeline is expected to reduce the dependence on old pipes in the region. South Sudan may also become a partner in the pipeline arrangement.
  • In 2019, Sudan is in the process of creating an LNG Terminal at its coastline of the Red Sea. The regasification terminal is expected to increase the LNG supply and decrease dependence on the piped gas.
  • Hence, investment in the oil and gas industry is expected to be the most prominent driver for the forecast period.



Competitive Landscape

The Sudan oil and gas upstream market is moderately consolidated. The major companies include Oil and Natural Gas Corporation, Sudan National Petroleum Corporation, China National Petroleum Corporation, Sunagas, and Petrodar Operating Company.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support