In 1998 to 1999 GNPOC installed oil production and processing facilities for 5 oil fields in the Muglad Basin of South Sudan. More than 15,000 KM pipeline was also constructed from the fields to Bashair terminal in the Red Sea. Production was estimated at 150,000 bpd and could grow to 300,000 bpd over the medium term. First shipment was transported in the pipeline in June 1999. Parts of crude oil is distributed to the El Obied refinery and the Khartoum Refinery for domestic consumption. The remaining oil is exported.
Oil Field in Sudan
The upstream oil industry could be key to the future of the economy of Sudan. Although the country is considered to be vastly under-explored, it has been a producer of oil and gas for a number of years. The country's oil and gas reserves are vast. The downstream oil industry in Sudan is an important sector in the country's economy as Sudan has two refineries.