Progress in Oil Export Resumption

NAIROBI (Reuters) – South Sudan and Sudan are advancing towards restarting the crude oil pumping via a pipeline to a port in Sudan, according to South Sudan's finance minister and the president's office.

Importance

These oil exports are vital for revenue generation for South Sudan, with Sudan receiving transit fees from the operations.

Background

The main pipeline, which facilitates oil export from South Sudan through Sudan, was halted in February due to damage from ongoing conflicts between Sudan's army and the Rapid Support Forces. This interruption not only poses environmental hazards but also escalates food prices in Sudan, where many face extreme hunger.

Key Statements

• "Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production," stated the office of South Sudan's President Salva Kiir following a meeting with Sudan's army chief, Abdel Fattah al-Burhan.
• South Sudanese engineers are expected to visit Sudan soon to assess facility readiness and expedite production.
• South Sudan's Finance Minister Marial Dongrin Ater mentioned a significant breakthrough, with public announcements on the progress anticipated soon.
• Burhan’s office emphasized plans for an operational strategy to restart oil flows.

Economic Context

The South Sudan economy has faced difficulties in recent years due to internal violence and has seen a decline in crude oil export revenue, particularly since the civil war from 2013 to 2018, compounded by export disruptions from conflicts in neighboring Sudan.

Statistics

Prior to the conflict, South Sudan exported about 150,000 barrels of crude oil per day through Sudan, adhering to agreements made upon South Sudan's independence from Sudan in 2011. Its highest production levels before the civil war reached 350,000 to 400,000 barrels per day.