According to South Sudan’s finance minister and the president’s office, progress has been made in getting South Sudan and Sudan to resume supplying crude oil through a pipeline that goes to a port in their neighbourhood.
South Sudan depends heavily on its oil exports for its income, and Sudan keeps a portion of the oil as a transit fee.
The devastation resulting from a fight between Sudan’s army and the Rapid Support Forces forced the closure of the major pipeline that transported oil from South Sudan via Sudan for export in February. According to observers, the stoppage has caused food prices in Sudan, where millions of people suffer from acute hunger, to rise. The damage is likely to cause major environmental degradation.
“Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production,” South Sudan President Salva Kiir’s office said in a statement late on Monday after a meeting in Juba between Kiir and Sudan’s army chief Abdel Fattah al-Burhan.
“Engineers from South Sudan are expected to visit Sudan in the coming weeks to familiarise themselves with the readiness of the facilities to jump-start production.”
“There has been a breakthrough, and (news of) it will come to the public very soon,” South Sudan’s Finance Minister Marial Dongrin Ater told a news conference late on Monday.
Burhan’s office said the two sides would develop an operational plan to restart oil flows.
Due to intercommunal violence, South Sudan’s economy has been under strain recently. Since the civil war that lasted from 2013 to 2018, revenue from crude oil exports has decreased, and more recently, export disruptions have occurred because of the conflict in neighbouring Sudan.
Following its independence from Khartoum in 2011, South Sudan began exporting roughly 150,000 barrels of crude oil per day through Sudan, following a formula that took the majority of the country’s oil production with it.
Before the civil war, South Sudan produced between 350,000 and 400,000 barrels of crude oil per day at its highest point.