Commodities

South Sudan Announces Readiness to Resume Oil Pumping Through Sudan, Reports Reuters

Progress in Oil Pipeline Resumption Between South Sudan and Sudan

NAIROBI (Reuters) – South Sudan and Sudan are making strides toward resuming the flow of South Sudan’s oil through a vital pipeline leading to a port in Sudan, according to statements from South Sudan’s finance minister and the president’s office.

Importance of Oil Exports

These oil exports are essential for generating revenue for South Sudan, which shares transit fees with Sudan for the use of the pipeline. The main oil conduit from South Sudan through Sudan had been inactive since February due to damage caused by the ongoing conflict between Sudan’s army and the Rapid Support Forces.

Experts warn that the halted operations have led to significant environmental damage and further exacerbated food prices in Sudan, where millions are experiencing severe food insecurity.

Key Developments

In a recent statement following a meeting in Juba between South Sudan’s President Salva Kiir and Sudan’s army chief Abdel Fattah al-Burhan, it was announced that "Sudanese engineers have completed the necessary technical preparations for the resumption of oil production."

Additionally, South Sudanese engineers are scheduled to visit Sudan shortly to assess the readiness of facilities to expedite the restart of production. South Sudan’s Finance Minister Marial Dongrin Ater expressed optimism, indicating that a breakthrough has occurred, and further details will be made public soon.

Burhan’s office confirmed that both parties would collaborate to create an operational plan for restarting oil flows.

Contextual Background

The economy of South Sudan has faced increasing challenges in recent years, driven by communal violence and a significant drop in crude oil export revenue since the civil war from 2013 to 2018. The recent disruptions in oil exports due to the conflict in neighboring Sudan have further strained the economic situation.

Statistical Insight

Previously, South Sudan was exporting around 150,000 barrels of oil per day through Sudan, based on an arrangement established when South Sudan became independent from Sudan in 2011 and took control of most oil production. At its height before the civil conflict, South Sudan’s oil output reached between 350,000 and 400,000 barrels per day.

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