Adar oilfield
Encyclopedia
The Adar oilfield, also known as the Adar Yale, Adar Yeil or Adaril field, is an oilfield situated in the Melut Basin
in South Sudan
estimated to contain about 276 Moilbbl of oil.
The Chevron Corporation
discovered the Adar Yale field in 1981, shortly before the start of the Second Sudanese Civil War
(1983–2005). Soon after Chevron had suspended operations in 1984, Sudanese government troops began attacking civilian settlements in the area, burning the houses and driving the people away, and in the late 1990s, Nuer militias from Nasir helped the army in clearing away the people to make way for the roads and infrastructure of the oilfield.
President Omar al-Bashir
inaugurated the site in March 1997, and it initially produced just 5000 barrels (794.9 m³) a day. Production from this oilfield, which lies close to the borders with Sudan and Ethiopia, has the potential to bring significant economic benefits to the region. However, until recently the focus has been on clearing the population away from the oilfield rather than on a longer term strategy for developing the region.China has provided a large investment in the Adar oilfield and others in South Sudan and Sudan and has made plans to make extensive further investments.
, which lies on the White Nile
in Upper Nile state, and to the west of Ethiopia.
The Khor Adar, which drains the Machar Marshes
, flows through the region in a northwest direction to the Nile, which it reaches just above Melut.
The Khor Machar swamps lie in a triangle north of the Sobat River
and east of the White Nile
.
When flooded during the wet season, they extend for 6500 square kilometres (2,509.7 sq mi).
The swamps and marshes are fed by local rainfall and by many small torrents from the Ethiopian foothills, which extend for 200 kilometres (124.3 mi) along the eastern border, and by spill water from channels of the Sobat.
Discharge from the marshes along the Adar river is low except in years with exceptionally heavy rainfall.
Most of the water is lost through evaporation before reaching the Nile.
It has been proposed to build a canal from Machar via Adar to the White Nile to increase the volume of water flowing to Northern Sudan and Egypt, which apparently could be done without major environmental impact, but political instability has prevented the project from starting.
The Chevron Corporation
discovered the Adar Yale field in 1981, shortly before the start of the Second Sudanese Civil War
(1983-2005).
Four exploratory wells had flow rates that exceeded 1500 barrels (238.5 m³) a day.
The oil is held in the Yabus Formation sandstone from the Paleogene
age.
The field has an area of about 20 square kilometres (7.7 sq mi) but the average pay zone is only 2.9 square kilometres (1.1 sq mi).
Initially the field was estimated to hold 168 Moilbbl, but Seismic data acquired in 2000 pushed that up to 276 Moilbbl.
Also, three small oil pools were discovered south of Adar-Yale with another 129 Moilbbl.
Chevron started to pull out of Sudan in 1984 when three of its employees were killed, finally selling all of its Sudanese interests in 1992.
In 1992 Gulf Petroleum Corporation-Sudan (GPC) was awarded the Melut Basin
- Blocks 3 and 7.
GPC was owned 60% by Qatar
’s Gulf Petroleum Corporation, 20% by Sudapet
and 20% by a company owned by the National Islamic Front
(NIF) financier Mohamed Abdullah Jar al-Nabi.
The GPC consortium was reported to have invested US$12m in developing the Adar Yale field.
In October 1996 GPC began to drill and reopen Chevron's wells and to build an all-weather road connecting Adar Yale to the garrison town of Melut.
President Omar al-Bashir
inaugurated the Adar Yale site in March 1997.
At first, production was just 5000 barrels (794.9 m³) a day, taken by truck to Melut and then by barge down the Nile to Khartoum
for export. Although export volumes were tiny compared to the field's potential, it was the first Sudanese crude to be exported and therefore had symbolic significance.
In March 2000 Fosters Resources, a Canadian company, signed an agreement with the government of Sudan to develop the concession that covered most of the Melut Basin, including the Adar Yeil field, in partnership with a consortium of Arab and Sudanese companies. Fosters was forced to withdraw in May 2000 when its financial backing collapsed due to pressure from human rights groups.
The U.S. government had been highly critical of Canadian involvement in Sudan oil development and in February 2000 the U.S. Treasury announced that American persons were forbidden to do business with the Greater Nile Petroleum Operating Company
(GNPOC) and Sudapet.
Petrodar
was incorporated in October 2001 owned 41% by China National Petroleum Company (CNPC) and 40% by Petronas
of Malaysia. Petrodar implemented major upgrades to the oil development infrastructure, including 31000 barrels (4,928.6 m³)/day production facilities at the Adar Yale field, now largely cleared of its original inhabitants.
In November 2005 CNCP brought the Petrodar pipline into operation, linking Blocks 3 and 7 (Adar Yale and Palogue fields) to Port Sudan
on the Red Sea. The pipeline has throughput of 150000 barrels (23,848.1 m³) per day, and maximum capacity of 500000 oilbbl/d. By January 2007 combined output from Blocks 3 and 7 was 165,000 with potential to reach a peak of 200000 oilbbl/d by late 2007.
By 2009, the two blocks were producing close to 240000 oilbbl/d of Dar blend.
Because this blend of crude oil is heavy and highly acidic, it fetches lower prices than benchmark crudes such as Brent
or Minas.
The country is well suited to cultivation of crops watered by rain.
Soon after Chevron had closed operations, government troops began attacking civilian settlements in the area, burning the houses and driving the people away. This resulted in many deaths.
In the late 1990s, Nuer militias from Nasir helped the army in clearing away the people to make way for the roads and infrastructure of the oilfield.
Aid workers were also targeted in attacks, with NGO compounds, farm supply distribution centers and primary health care centers vandalized and destroyed.
One estimate is that 12,000 people were forced to move in 1999-2000 while the all-weather road was being built between Melut, Paloic and Adar.
Another source said church leaders reported that government militias burned 48 villages and displaced 55,000 people in the Adar area in 2000.
According to International Relief and Development agency (IRD) director Derek Hammond, the areas around Adar contained "Fields of destroyed crops with no evidence of any type of food, a handful of local people scratching around in a swamp for something to eat".
(SPLA) positions at Delal Ajak, west of the Nile.
Their goal was to secure passage for barge shipments of oil from the Adar-1 field.
In November 1996, SPLA leader John Garang
gave warning that his forces would attack the Adar Yale oil field.
In June 1998 the SPLA captured the town of Ulu, close to the Adar Yale field, and in March 1999 the SPLA 13th battalion defeated a government brigade at the town. With this victory, the Adar Yale oilfield was within range of the SPLA's artillery.
In April 2001 a Russian-made Antonov
airplane broke in two after it skidded off the runway at Adaril, apparently due to a sandstorm.
The crash killed Sudan's deputy defense minister, Colonel Ibrahim Shamsul-Din, and 13 other high-ranking officers who had been touring the southern military area. 16 people survived the crash.A spokesman for the SPLA denied responsibility for the accident, saying they did not have forces in the area.
The Sudanese Civil War officially ended in January 2005, and the Juba Declaration of 8 January 2006
laid out the basis for unifying rival military forces in South Sudan
. Gordon Kong Chuol
, Deputy Commander of the South Sudan Defense Forces (SSDF), which had been supported by the Government of Sudan, resisted the merger. His core faction, the "Nasir Peace Force" was based in the village of Ketbek, just north of Nasir, with 75-80 fighters as of August 2006 and perhaps 300 reserve forces in the area.
His position on the border with Sudan to the north and near to the functioning Adar Yale oilfield was sensitive.
In July 2006, four busloads of SSDF recruits arrived in the area from Khartoum.
In August 2006 there were reported to be 300-400 active SSDF militiamen in the Adar area.
China has provided a large investment in the Adar oilfield and others in South Sudan, as well as in oilfields in Sudan, and in the pipeline to Port Sudan. China established a consulate in Juba
in September 2008 and upgraded it to an embassy in November 2010. China has made plans to make significant investments in South Sudan.
A pipeline to the Kenyan port of Lamu
is being discussed which could provide an alternative route if Sudan chooses to close the northern pipeline. It is in China's interest to resolve security problems, and as a major investor and customer of both countries China may have the leverage to achieve this goal.
Melut Basin
The Melut Basin is a rift basin in South Sudan. It is situated in the states of Upper Nile and Jonglei, south of the capital Khartoum and east of the river Nile. The Basin contains several hydrocarbon accumulations, although oil exploration, as elsewhere in Sudan, has been hindered by conflict...
in South Sudan
South Sudan
South Sudan , officially the Republic of South Sudan, is a landlocked country located in the Sahel region of northeastern Africa. It is also part of the North Africa UN sub-region. Its current capital is Juba, which is also its largest city; the capital city is planned to be moved to the more...
estimated to contain about 276 Moilbbl of oil.
The Chevron Corporation
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
discovered the Adar Yale field in 1981, shortly before the start of the Second Sudanese Civil War
Second Sudanese Civil War
The Second Sudanese Civil War started in 1983, although it was largely a continuation of the First Sudanese Civil War of 1955 to 1972. Although it originated in southern Sudan, the civil war spread to the Nuba mountains and Blue Nile by the end of the 1980s....
(1983–2005). Soon after Chevron had suspended operations in 1984, Sudanese government troops began attacking civilian settlements in the area, burning the houses and driving the people away, and in the late 1990s, Nuer militias from Nasir helped the army in clearing away the people to make way for the roads and infrastructure of the oilfield.
President Omar al-Bashir
Omar al-Bashir
Lieutenant General Omar Hassan Ahmad Al-Bashir is the current President of Sudan and the head of the National Congress Party. He came to power in 1989 when he, as a brigadier in the Sudanese army, led a group of officers in a bloodless military coup that ousted the government of Prime Minister...
inaugurated the site in March 1997, and it initially produced just 5000 barrels (794.9 m³) a day. Production from this oilfield, which lies close to the borders with Sudan and Ethiopia, has the potential to bring significant economic benefits to the region. However, until recently the focus has been on clearing the population away from the oilfield rather than on a longer term strategy for developing the region.China has provided a large investment in the Adar oilfield and others in South Sudan and Sudan and has made plans to make extensive further investments.
Background and location
Adar is an area southeast of MelutMelut
Melut is a community in the Upper Nile state of South Sudan, headquarters of Melut County.-Location:The town is on the east bank of the White Nile, just below the point where the Adar River enters the Nile....
, which lies on the White Nile
White Nile
The White Nile is a river of Africa, one of the two main tributaries of the Nile from Egypt, the other being the Blue Nile. In the strict meaning, "White Nile" refers to the river formed at Lake No at the confluence of the Bahr al Jabal and Bahr el Ghazal rivers...
in Upper Nile state, and to the west of Ethiopia.
The Khor Adar, which drains the Machar Marshes
Machar Marshes
The Machar Marshes are a large area of wetlands in the state of Upper Nile, South Sudan. Estimates of their size vary. A 1950 study put the area of swamp at 6,500 sq. km. A 1980 study put the area of permanent swamp at 8,700 sq...
, flows through the region in a northwest direction to the Nile, which it reaches just above Melut.
The Khor Machar swamps lie in a triangle north of the Sobat River
Sobat River
The Sobat River is a river in South Sudan, Africa. The most southerly of the great eastern tributaries of the Nile, the Sobat enters the White Nile at Doleib Hill, near the city of Malakal in the Upper Nile state of South Sudan...
and east of the White Nile
White Nile
The White Nile is a river of Africa, one of the two main tributaries of the Nile from Egypt, the other being the Blue Nile. In the strict meaning, "White Nile" refers to the river formed at Lake No at the confluence of the Bahr al Jabal and Bahr el Ghazal rivers...
.
When flooded during the wet season, they extend for 6500 square kilometres (2,509.7 sq mi).
The swamps and marshes are fed by local rainfall and by many small torrents from the Ethiopian foothills, which extend for 200 kilometres (124.3 mi) along the eastern border, and by spill water from channels of the Sobat.
Discharge from the marshes along the Adar river is low except in years with exceptionally heavy rainfall.
Most of the water is lost through evaporation before reaching the Nile.
It has been proposed to build a canal from Machar via Adar to the White Nile to increase the volume of water flowing to Northern Sudan and Egypt, which apparently could be done without major environmental impact, but political instability has prevented the project from starting.
The Chevron Corporation
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
discovered the Adar Yale field in 1981, shortly before the start of the Second Sudanese Civil War
Second Sudanese Civil War
The Second Sudanese Civil War started in 1983, although it was largely a continuation of the First Sudanese Civil War of 1955 to 1972. Although it originated in southern Sudan, the civil war spread to the Nuba mountains and Blue Nile by the end of the 1980s....
(1983-2005).
Four exploratory wells had flow rates that exceeded 1500 barrels (238.5 m³) a day.
The oil is held in the Yabus Formation sandstone from the Paleogene
Paleogene
The Paleogene is a geologic period and system that began 65.5 ± 0.3 and ended 23.03 ± 0.05 million years ago and comprises the first part of the Cenozoic Era...
age.
The field has an area of about 20 square kilometres (7.7 sq mi) but the average pay zone is only 2.9 square kilometres (1.1 sq mi).
Initially the field was estimated to hold 168 Moilbbl, but Seismic data acquired in 2000 pushed that up to 276 Moilbbl.
Also, three small oil pools were discovered south of Adar-Yale with another 129 Moilbbl.
Chevron started to pull out of Sudan in 1984 when three of its employees were killed, finally selling all of its Sudanese interests in 1992.
Development and production
Chevron suspended operations in 1984, and their concession was later divided into smaller units.In 1992 Gulf Petroleum Corporation-Sudan (GPC) was awarded the Melut Basin
Melut Basin
The Melut Basin is a rift basin in South Sudan. It is situated in the states of Upper Nile and Jonglei, south of the capital Khartoum and east of the river Nile. The Basin contains several hydrocarbon accumulations, although oil exploration, as elsewhere in Sudan, has been hindered by conflict...
- Blocks 3 and 7.
GPC was owned 60% by Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
’s Gulf Petroleum Corporation, 20% by Sudapet
Sudapet
The Sudan National Petroleum Corporation, also known as Sudapet, is a state-owned oil company based in Sudan. It was founded in 1997 and is 100% owned by the Ministry for Energy and Mining....
and 20% by a company owned by the National Islamic Front
National Islamic Front
The National Islamic Front is the Islamist political organization founded and led by Dr. Hassan al-Turabi that has influenced the Sudanese government since 1979, and dominated it since 1989...
(NIF) financier Mohamed Abdullah Jar al-Nabi.
The GPC consortium was reported to have invested US$12m in developing the Adar Yale field.
In October 1996 GPC began to drill and reopen Chevron's wells and to build an all-weather road connecting Adar Yale to the garrison town of Melut.
President Omar al-Bashir
Omar al-Bashir
Lieutenant General Omar Hassan Ahmad Al-Bashir is the current President of Sudan and the head of the National Congress Party. He came to power in 1989 when he, as a brigadier in the Sudanese army, led a group of officers in a bloodless military coup that ousted the government of Prime Minister...
inaugurated the Adar Yale site in March 1997.
At first, production was just 5000 barrels (794.9 m³) a day, taken by truck to Melut and then by barge down the Nile to Khartoum
Khartoum
Khartoum is the capital and largest city of Sudan and of Khartoum State. It is located at the confluence of the White Nile flowing north from Lake Victoria, and the Blue Nile flowing west from Ethiopia. The location where the two Niles meet is known as "al-Mogran"...
for export. Although export volumes were tiny compared to the field's potential, it was the first Sudanese crude to be exported and therefore had symbolic significance.
In March 2000 Fosters Resources, a Canadian company, signed an agreement with the government of Sudan to develop the concession that covered most of the Melut Basin, including the Adar Yeil field, in partnership with a consortium of Arab and Sudanese companies. Fosters was forced to withdraw in May 2000 when its financial backing collapsed due to pressure from human rights groups.
The U.S. government had been highly critical of Canadian involvement in Sudan oil development and in February 2000 the U.S. Treasury announced that American persons were forbidden to do business with the Greater Nile Petroleum Operating Company
Greater Nile Petroleum Operating Company
The Greater Nile Petroleum Operating Company is a petroleum exploration and production company operating in Sudan. It was incorporated on 18 June 1997 and undertook construction of the Greater Nile Oil Pipeline which links Sudan's inland oil fields with refineries at Khartoum and Port Sudan.The...
(GNPOC) and Sudapet.
Petrodar
PetroDar
The PetroDar Operating Company Ltd is a consortium of oil exploration and production companies operating in Sudan with its headquarters in Khartoum. The consortium was incorporated in the Virgin Islands on 31 October 2001...
was incorporated in October 2001 owned 41% by China National Petroleum Company (CNPC) and 40% by Petronas
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
of Malaysia. Petrodar implemented major upgrades to the oil development infrastructure, including 31000 barrels (4,928.6 m³)/day production facilities at the Adar Yale field, now largely cleared of its original inhabitants.
In November 2005 CNCP brought the Petrodar pipline into operation, linking Blocks 3 and 7 (Adar Yale and Palogue fields) to Port Sudan
Port Sudan
Port Sudan is the capital of Red Sea State, Sudan; it has 489,725 residents . Located on the Red Sea, it is the Republic of Sudan's main port city.-History:...
on the Red Sea. The pipeline has throughput of 150000 barrels (23,848.1 m³) per day, and maximum capacity of 500000 oilbbl/d. By January 2007 combined output from Blocks 3 and 7 was 165,000 with potential to reach a peak of 200000 oilbbl/d by late 2007.
By 2009, the two blocks were producing close to 240000 oilbbl/d of Dar blend.
Because this blend of crude oil is heavy and highly acidic, it fetches lower prices than benchmark crudes such as Brent
Brent Crude
Brent Crude is the biggest of the many major classifications of crude oil consisting of Brent Crude, Brent Sweet Light Crude, Oseberg, Ekofisk, and Forties . Brent Crude is sourced from the North Sea. The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum...
or Minas.
People
Adar is predominantly inhabited by the Dinka people, who mainly cultivate crops and raise cattle. Many of the Dinka use riverine pastures along the east bank of the White Nile, but in dry seasons can usually find alternative pasturage along the Khor Adal and Khor Wol and on the edges of the marshes.The country is well suited to cultivation of crops watered by rain.
Soon after Chevron had closed operations, government troops began attacking civilian settlements in the area, burning the houses and driving the people away. This resulted in many deaths.
In the late 1990s, Nuer militias from Nasir helped the army in clearing away the people to make way for the roads and infrastructure of the oilfield.
Aid workers were also targeted in attacks, with NGO compounds, farm supply distribution centers and primary health care centers vandalized and destroyed.
One estimate is that 12,000 people were forced to move in 1999-2000 while the all-weather road was being built between Melut, Paloic and Adar.
Another source said church leaders reported that government militias burned 48 villages and displaced 55,000 people in the Adar area in 2000.
According to International Relief and Development agency (IRD) director Derek Hammond, the areas around Adar contained "Fields of destroyed crops with no evidence of any type of food, a handful of local people scratching around in a swamp for something to eat".
Security
In July 1996 the Government of Sudan attacked Sudan People's Liberation ArmySudan People's Liberation Army
The Sudan People's Liberation Movement is a political party in South Sudan. It was initially founded as a rebel political movement with a military wing known as the Sudan People's Liberation Army estimated at 180,000 soldiers. The SPLM fought in the Second Sudanese Civil War against the Sudanese...
(SPLA) positions at Delal Ajak, west of the Nile.
Their goal was to secure passage for barge shipments of oil from the Adar-1 field.
In November 1996, SPLA leader John Garang
John Garang
John Garang de Mabior was a Sudanese politician and rebel leader. From 1983 to 2005, he led the Sudan People's Liberation Army during the Second Sudanese Civil War, and following a peace agreement he briefly served as First Vice President of Sudan from January 2005 until he died in a July 2005...
gave warning that his forces would attack the Adar Yale oil field.
In June 1998 the SPLA captured the town of Ulu, close to the Adar Yale field, and in March 1999 the SPLA 13th battalion defeated a government brigade at the town. With this victory, the Adar Yale oilfield was within range of the SPLA's artillery.
In April 2001 a Russian-made Antonov
Antonov
Antonov, or Antonov Aeronautical Scientist/Technical Complex , formerly the Antonov Design Bureau, is a Ukrainian aircraft manufacturing and services company with particular expertise in the field of very large aircraft construction. Antonov ASTC is a state-owned commercial company...
airplane broke in two after it skidded off the runway at Adaril, apparently due to a sandstorm.
The crash killed Sudan's deputy defense minister, Colonel Ibrahim Shamsul-Din, and 13 other high-ranking officers who had been touring the southern military area. 16 people survived the crash.A spokesman for the SPLA denied responsibility for the accident, saying they did not have forces in the area.
The Sudanese Civil War officially ended in January 2005, and the Juba Declaration of 8 January 2006
Juba Declaration of 8 January 2006
The Juba Declaration of 8 January 2006, formally the Juba Declaration on Unity and Integration between the Sudan People’s Liberation Army And the South Sudan Defence Forces January 8, 2006, laid out the basis for unifying rival military forces in South Sudan following the end of the Second...
laid out the basis for unifying rival military forces in South Sudan
South Sudan
South Sudan , officially the Republic of South Sudan, is a landlocked country located in the Sahel region of northeastern Africa. It is also part of the North Africa UN sub-region. Its current capital is Juba, which is also its largest city; the capital city is planned to be moved to the more...
. Gordon Kong Chuol
Gordon Kong Chuol
Gordon Kong Chuol is a former militia commander in South Sudan, who fought for the Sudan People's Liberation Army and later for the forces led by Riek Machar during the Second Sudanese Civil War.-Independence fighter:...
, Deputy Commander of the South Sudan Defense Forces (SSDF), which had been supported by the Government of Sudan, resisted the merger. His core faction, the "Nasir Peace Force" was based in the village of Ketbek, just north of Nasir, with 75-80 fighters as of August 2006 and perhaps 300 reserve forces in the area.
His position on the border with Sudan to the north and near to the functioning Adar Yale oilfield was sensitive.
In July 2006, four busloads of SSDF recruits arrived in the area from Khartoum.
In August 2006 there were reported to be 300-400 active SSDF militiamen in the Adar area.
China has provided a large investment in the Adar oilfield and others in South Sudan, as well as in oilfields in Sudan, and in the pipeline to Port Sudan. China established a consulate in Juba
Juba
- Locations :* Juba, the capital of South Sudan* Juba, Estonia, a village in Võru Parish, Võru County, Estonia- People :* Juba I of Numidia * Juba II of Numidia * Juba of Mauretania...
in September 2008 and upgraded it to an embassy in November 2010. China has made plans to make significant investments in South Sudan.
A pipeline to the Kenyan port of Lamu
Lamu
-Threats to Lamu:In a 2010 report titled Saving Our Vanishing Heritage, Global Heritage Fund identified Lamu as one of 12 worldwide sites most "On the Verge" of irreparable loss and damage, citing insufficient management and development pressure as primary causes.- See also :* Juma and the Magic...
is being discussed which could provide an alternative route if Sudan chooses to close the northern pipeline. It is in China's interest to resolve security problems, and as a major investor and customer of both countries China may have the leverage to achieve this goal.