Progress in Oil Exports Between South Sudan and Sudan

NAIROBI (Reuters) – South Sudan and Sudan have made progress towards restarting the pumping of South Sudan’s crude oil through a pipeline to the port in Sudan, according to South Sudan’s finance minister and the president’s office.

Why It’s Important

The exports are a crucial revenue source for South Sudan, while Sudan receives a transit fee from the oil.

The main pipeline carrying oil from South Sudan through Sudan was halted in February due to war-related damage between Sudan’s army and the Rapid Support Forces. Analysts indicate that this damage has led to significant environmental contamination and contributed to rising food prices in Sudan, where millions face extreme hunger.

Key Quotes

“Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production,” South Sudan President Salva Kiir’s office stated after a meeting with Sudan’s army chief, Abdel Fattah al-Burhan, in Juba.

“Engineers from South Sudan are expected to visit Sudan soon to familiarize themselves with the facilities’ readiness to jump-start production.”

“There has been a breakthrough, and news of it will come to the public very soon,” stated South Sudan’s Finance Minister Marial Dongrin Ater at a news conference.

Burhan’s office mentioned that both sides will develop an operational plan to restart oil flows.

Context

South Sudan’s economy has been under pressure due to years of communal violence, with crude oil export revenue dwindling since the civil war (2013-2018) and more recent export disruptions due to the conflict in Sudan.

By The Numbers

South Sudan had been exporting approximately 150,000 barrels per day of crude oil through Sudan, based on a framework established when South Sudan gained independence from Khartoum in 2011. Before the civil war, South Sudan’s crude oil production peaked at 350,000 to 400,000 barrels per day.