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August 29, 2024 (Juba) – South Sudan will halt oil production flowing through neighbouring Sudan as ongoing conflict further strains the country’s economy, a parliamentary official said on Tuesday.
Oliver Murray-Benjamin, chairman of the parliamentary information committee, said Oil Minister Puot Konjo told lawmakers in a closed-door meeting that oil exports would only resume once Sudan’s conflict ended.
The situation was further complicated by the sabotage in February of a pipeline that carries more than 60 percent of South Sudan’s crude oil to Port Sudan for export.
“Until the war in Sudan subsides, oil supplies will not resume because our pipelines … have been blocked,” Mori explained, adding that the government had sent a team to shut down the pipeline to reduce risks.
South Sudan’s oil exports have been halted since February 6, 2024, due to pipeline damage. On March 16, South Sudan declared force majeure after the operator of the Jabelin-Port Sudan pipeline discovered solidification between pumping stations 4 and 5, located in the military operation zone.
Juba’s oil production fell from an average of 150,000 barrels per day in 2023 to 90,000 barrels per day in March 2024, the same month a major pipeline in Sudan ruptured.
This has stalled South Sudan’s ability to ship crude oil to international markets through Port Sudan, as Sudan is the only channel for the landlocked country to export crude oil.
According to South Sudan’s Ministry of Petroleum, only 1.2 million barrels of South Sudan’s oil were shipped to the international market in March, compared with 2.2 million barrels in February and 6 million barrels in January.
South Sudan is facing a shortage of U.S. dollars as revenue from oil extraction, its main source of income, declines due to the depletion of oil wells and ongoing conflict in neighboring Sudan.
(English stone)
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