JUBA (Reuters) – South Sudan and Sudan have made significant progress towards resuming oil pumping through a crucial pipeline, boosting revenue for both nations, according to statements from South Sudan’s finance minister and the president’s office.
Discover why this development is crucial for the economies of both South Sudan and Sudan.
The oil exports serve as a major source of income for South Sudan, with Sudan also benefiting from transit fees.
Earlier this year, Sudan reported interruptions in the main oil pipeline due to conflicts between its army and the Rapid Support Forces.
"Sudanese engineers have successfully completed the necessary technical preparations to restart oil production," said a statement from South Sudan President Salva Kiir’s office after a recent meeting between Kiir and Sudan’s army chief Abdel Fattah al-Burhan in Juba.
"Engineers from South Sudan will soon visit Sudan to assess the readiness of facilities and kickstart production," the statement added.
South Sudan’s Finance Minister Marial Dongrin Ater also expressed optimism, stating that a breakthrough has been achieved and will soon be made public.
Given the economic challenges faced by South Sudan in recent years, including civil unrest and export disruptions, the resumption of oil pumping is a significant development.
Previously, South Sudan was sending approximately 150,000 barrels of crude oil per day through Sudan for export, a figure that had decreased significantly since the civil war from 2013 to 2018.
Before the conflict, South Sudan’s oil production reached up to 400,000 barrels per day.
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Analysis:
The recent progress made by South Sudan and Sudan in restarting oil pumping through a key pipeline is a positive development for both nations. This move is expected to boost revenue and economic stability, particularly for South Sudan, which heavily relies on oil exports for income. The resumption of oil production also signifies a step towards recovering from past conflicts and challenges that have hindered economic growth in the region. Overall, this development has the potential to positively impact the economies of both South Sudan and Sudan, leading to increased revenue and stability in the coming months.