South Sudan Resumes Crude Exports

 

South Sudan has announced the resumption of crude oil exports through Sudan, nearly a year after suspending operations due to security concerns in the region.

The move comes as Sudan lifted a 10-month-long force majeure on the pipeline connecting South Sudan’s oil fields to Port Sudan.

South Sudan’s Minister of Petroleum, Puot Kang Chol, said operations would restart on January 8, following the resolution of security and pipeline issues.

“On behalf of the Ministry of Petroleum, I am pleased to announce the resumption of Dar Petroleum Operating Company (DPOC) operations in Blocks 3 and 7, effective immediately,” Chol said on Tuesday.

“This restart will have a significant positive impact on South Sudan’s economy, with the full support of our international partners, CNPC, SINOPEC, and SSTO.”

Oil revenues are a critical lifeline for South Sudan, accounting for about 90 percent of the country’s budget.

The resumption of crude flows is expected to bolster foreign exchange earnings and provide a much-needed boost to an economy battered by the prolonged suspension of exports.

The suspension stemmed from a major pipeline rupture in March 2024 in an area affected by military activity in Sudan.

The conflict, which began in April 2023, pitted the Sudanese army against the Rapid Support Forces (RSF), disrupting critical infrastructure, including the pipeline route.

South Sudan’s oil exports came to a halt, plunging the country into a fiscal crisis as its sole export route remained inaccessible.

The minister said the Dar Petroleum Operating Company (DPOC) and the Bashier Pipeline Company (BAPCO) had been directed to resume operations immediately.

The improved security conditions and new arrangements were instrumental in lifting the force majeure.

South Sudan has grappled with insecurity since gaining independence in 2011, with internal conflict and regional instability often hindering economic growth. The latest challenges included the war in neighboring Sudan, which not only disrupted oil exports but also exacerbated the nation’s reliance on humanitarian aid.

South Sudan is pinning its hopes on a steady recovery of oil revenues to stabilise its economy and fund critical services.

ligadwah@businessdayafrica.org