Sudan’s Sovereign Council Chairman, General Abdel Fattah Al-Burhan, is set to visit South Sudan in the coming days to discuss the resumption of South Sudan’s oil exports through Sudan, following a pipeline rupture earlier this year.
South Sudan, which relies heavily on oil exports, depends on Sudan for transporting its oil to international markets. However, the Sudanese government suspended oil exports from South Sudan in March due to issues with the transportation lines.
Speaking at the conclusion of the 8th Governors’ Forum in Juba on Monday, South Sudanese President Salva Kiir announced that General Burhan’s visit, originally scheduled for Monday, had been postponed due to the closing session of the forum. Kiir confirmed that the visit is part of ongoing talks between Sudanese and South Sudanese leaders aimed at resuming the oil exports.
The South Sudanese president acknowledged the significant economic difficulties his country is facing, describing them as a “double crisis.” He pointed to the suspension of oil production and the withdrawal of Malaysian oil company Petronas as key factors exacerbating the strain on the economy.
“Our economy is in distress, especially due to the disruption at the Paloch oilfields,” Kiir stated. “We are facing a dual crisis—operations were interrupted by the conflict in Sudan, and Petronas withdrew. I am fully engaged with our brothers in Sudan to ensure unfettered access for engineers and a steady flow of materials to the oil fields.”
Petronas, through its subsidiary Petronas Carigali Nile Ltd (PNCL), withdrew from South Sudan in August after 14 years of operations. PNCL held interests in three Joint Operating Companies (JOCs) managing Block 3/7 (40%), Block 1/2/4 (30%), and Block 5A (67.9%). These assets included interests in 64 producing fields, with an average daily production of 153,200 barrels of oil in 2021. The JOC partners included China National Petroleum Corp, Sinopec, India’s Oil and Natural Gas Corporation Ltd, and Nilepet, South Sudan’s national oil company.
Despite Petronas’ withdrawal, President Kiir assured the public that efforts are underway to prevent any disruption to oil production.
“The institutions responsible for oil operations are working hard to ensure that Petronas’ departure does not halt production,” Kiir said.
The country’s ongoing economic challenges have also led to delays in the payment of salaries for civil servants and organized forces.