By Kitab Unango South Sudan and Sudan are on the brink of resuming the flow of crude oil through the critical pipeline that connects the two nations, offering a glimmer of hope for both economies that have suffered due to the disruption of oil exports. After months of stalled production caused by ongoing conflicts, the two countries have made significant strides toward resolving technical issues and resuming the vital oil export business. The breakthrough was confirmed by South Sudan’s Fin
By Kitab Unango
South Sudan and Sudan are on the brink of resuming the flow of crude oil through the critical pipeline that connects the two nations, offering a glimmer of hope for both economies that have suffered due to the disruption of oil exports.
After months of stalled production caused by ongoing conflicts, the two countries have made significant strides toward resolving technical issues and resuming the vital oil export business.
The breakthrough was confirmed by South Sudan’s Finance Minister, Marial Dongrin Ater, in a news conference late on Monday. "There has been a breakthrough, and it will come to public [attention] very soon," Ater said, signaling that the long-awaited resumption of oil production could finally be within reach.
This follows a crucial meeting held in Juba between South Sudan's President Salva Kiir and Sudan’s army chief, General Abdel Fattah al-Burhan, to address the necessary steps toward restarting the flow of oil.
According to a statement from President Kiir’s office, Sudanese engineers have completed the technical groundwork required to restart oil production saying. "Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production," the statement read.
It also mentioned that South Sudanese engineers are scheduled to visit Sudan within the coming weeks to inspect the facilities and familiarize themselves with the work done by their Sudanese counterparts.
“The goal is to jump-start production as quickly as possible,” added the statement, indicating that both nations are now in the final stages of preparing for oil exports to resume.
This pipeline, which stretches from the oil fields of South Sudan to Sudan’s Port Sudan for export, is a lifeline for both countries’ economies. The disruption in February, caused by clashes between Sudan’s army and the Rapid Support Forces (RSF), has had severe repercussions.
Oil exports were halted, triggering a domino effect that saw not only a decrease in much-needed revenue for South Sudan but also environmental contamination and soaring food prices in Sudan.
For South Sudan, oil accounts for 90% of government revenues, and the months of stalled production have hit the economy hard. The country, which has been struggling with underdeveloped infrastructure and a fragile economy since gaining independence in 2011, relies heavily on oil exports to finance government programs and stabilize the economy.
The resumption of oil exports is crucial, not just for government income but also for improving social services and development projects as the country’s reliance on Sudan’s infrastructure to export oil has long been a double-edged sword.
In addition to taking a significant portion of South Sudan’s oil in transit fees, Sudan has used the pipeline as a means of exerting pressure on its southern neighbor during times of conflict and negotiation.
Before the conflict in Sudan erupted, South Sudan was exporting approximately 150,000 barrels of crude oil per day through the pipeline. The loss of this revenue has pushed both governments to act swiftly in restarting the flow of oil.
While there is optimism surrounding the possible resumption of oil exports, not everyone is confident that the situation will lead to a smooth and trouble-free restart of the pipeline. Some in the oil industry, like Chol Elijah, Chief Executive Officer (CEO) of Frontier Mining Limited, are taking a more cautious stance.
“The resumption of the oil flow to Port Sudan depends entirely on factors outside our control. Methinks Sudan will use this resumption to arm-twist us to attempt to do things which might not be favorable to us," Chol warned.
Adding that "But I trust the leadership knows what the red lines are for us in regard to the conflict in Sudan. So I will keep holding my breath for the final announcement on the resumption of oil production in Upper Nile State.”
Chol’s concerns reflect broader anxieties within South Sudan’s business community about the potential geopolitical complications tied to the resumption of oil exports.
Sudan’s ongoing internal conflict presents a significant risk to the long-term stability of the pipeline, as clashes between the Sudanese military and the Rapid Support Forces (RSF) continue to flare up in different parts of the country.
Beyond the economic consequences, environmental contamination from the halted pipeline has also raised alarm in Sudan. The oil leakage has polluted areas near the pipeline, leading to rising food prices as agricultural lands were affected.
For local communities in both countries, the environmental degradation caused by the oil industry is an ongoing issue that must be addressed in any future agreements regarding the pipeline.
International observers are also watching the situation closely. The African Union and other regional organizations have urged both countries to settle their differences and prioritize the resumption of oil production, stressing that the broader region’s stability depends on economic recovery in both Sudan and South Sudan.
With the technical work completed and political talks yielding positive results, both Sudan and South Sudan are poised to re-enter the global oil market. The economic boost for South Sudan, in particular, could be transformative, provided that the resumption of oil exports is sustained in the long term and not interrupted by further conflict.
However, the broader issues surrounding the pipeline remain unresolved. As Chol Elijah indicated, the geopolitical tug-of-war between the two nations may continue to affect oil exports in the future.
For now, though, both countries appear determined to move forward, with the hope that resuming oil production will bring much-needed stability to their economies.
In the coming weeks, all eyes will be on the engineers in Sudan as they finalize preparations for what could be the start of a new chapter in South Sudan’s oil industry—one that both citizens and investors are anxiously awaiting.