South Sudan, Sudan oil stakeholders convene to discuss seamless oil resumption
Among the major hurdles addressed was the lifting of the force majeure, a critical step that would enable all partners to approve the integrated resumption plan and budget.
By Emmanuel Mandella
A two-day meeting held in Juba brought together key stakeholders from South Sudan and Sudan energy sector to assess the readiness of oil facilities and pipelines for the resumption of crude oil production.
The discussions, involving the Ministry of Petroleum, Sudan’s Ministry of Energy, Dar Petroleum Operating Company (DPOC), among other stakeholders, focused on overcoming challenges to achieve a smooth and timely reopening of oil operations.
Among the major hurdles addressed was the lifting of the force majeure, a critical step that would enable all partners to approve the integrated resumption plan and budget.
Further, stakeholders also called on Sudan’s government to ensure stability along the export pipeline and at all facilities to guarantee unrestricted access for staff and essential materials. Concerns were raised about the potential presence of residual crude oil in the PACOT pipeline, which could cause operational blockages.
“Stability and free access to facilities are non-negotiable for achieving sustainable crude oil production. This meeting has brought us closer to a solution,” said a senior official from South Sudan’s Ministry of Petroleum.
So far, both countries have already embarked on several preparatory steps, including joint technical evaluations of oil facilities and pipelines to identify and address vulnerabilities.
The Ministry of Petroleum and DPOC have committed to organizing a visit to Port Sudan within the next month to engage with the Bashayer Pipeline Company (BAPCO) and Sudan’s Ministry of Energy. These discussions will tackle crude oil recovery and reconciliation, essential for restarting production.
Additionally, both ministries have prioritized security coordination, agreeing to work with their respective governments to address safety concerns at critical facilities and along transportation routes.
A December 25 deadline has been set to lift the force majeure, clearing the way for all stakeholders to fulfill their obligations.
In a Mutual Benefits for Sudan and South Sudan, the resumption of crude oil production stands to benefit both nations significantly.
For South Sudan, it represents an opportunity to boost its revenue base, stabilize the economy, and fund development projects. Meanwhile, Sudan will benefit from increased export revenues, as the crude oil passes through its territory to international markets.
“This collaboration marks a turning point for both nations. It shows the determination to not only restore production but to also ensure long-term operational sustainability,” said an industry expert.
Finally, both countries have reiterated their commitment to ensuring safe access to critical facilities, the timely delivery of spare parts, and the maintenance of pipelines. With strong cooperation, they aim to overcome obstacles and pave the way for a brighter, mutually beneficial future.
On February 10, Sudan announced a force majeure on South Sudan crude oil exports, citing restricted access to oil operations caused by ongoing military activities.
According to multiple media sources, the directive, issued by the Sudan Ministry of Energy and Petroleum on March 16, stated a “gelling incident” in the pipeline between pump stations 4 and 5. Due to the ongoing war, the area was inaccessible, preventing operators from delivering the diesel needed to heat the oil and prevent it from solidifying, a situation that was further threatened by low temperatures.
Communication further became a challenge due to shut down of telecommunication services by the Rapid Support Forces (RSF), making it difficult for contact with pump 4.
To make the matters worse, Dar Petroleum Company would in February report damage of a key oil pipeline due to the ongoing war between the Sudanese Armed Forces and the RSF. Notably, South Sudan relies wholly on Sudan’s oil infrastructure, including pipeline, refineries and the Red Sea Port, to transport its oil.
Therefore, with the ongoing challenges, Sudan announced a force majeure; meaning the country could not meet its obligation to deliver South Sudan oil through the pipeline network to the export terminal due to the war.
And now, months later, her sister nation, South Sudan, among other partners in the oil production business, now want the issue addressed.
