South Sudan’s oil resumes transit to world market

South Sudan’s oil resumes transit to world market

The Sudanese government has reached an agreement with the community of Eastern Sudan to allow the transit of South Sudan crude oil to the world market.

The breakthrough came days after the Sudanese protesters disrupted the flow after blocking the oil terminal in Port Sudan, preventing the oil-dependent South Sudan from exporting its crude oil.

Had there been a further delay, this would have caused negative repercussions on the economy of Africa’s youngest nation.

The members of the Eastern Track to the 2020 Juba Peace Agreement protested against what they termed as the poor political and economic situation in the region, which they blamed on the Sudanese government.

“The joint meeting between the government delegations headed by the General Shams al-Din Kabashi, a member of the sovereign Council, and a delegation from the Beja Council reached an agreement on allowing the passage of South Sudanese oil exports through the Bashayer port,” said the Sudanese Sovereign Council as quoted by Aljazeera.

Though the pipeline for exporting South Sudan crude oil has been working, media reports indicated that it remains vulnerable to freezing and resultant damage due to protestors’ days of blockage of the vessel from loading the oil.

They agreed to open all ports and roads leading to the city which were blocked last week by the protestors during a meeting on Sunday with the government delegation led by Gen. Kabashi, accompanied by Sudanese Oil Minister Gadein Ali Obeid, Foreign Minster Mariam al Mahdi. 

Efforts to reach the South Sudan government for details of the agreement between Sudan’s government and protestors proved futile. 

Plan B

However, on Friday last week, Information Minister and Government Spokesperson Michael Makuei told the media the government would consider halting oil production if the protestors continued to block the transit.

He said the cabinet requested President Salva Kiir to communicate with relevant authorities to push for the reopening of the road to allow the country’s oil to reach the world market. 

“The crisis in Port Sudan has led to the closure of Port Sudan as a port and with the closure of Port Sudan, we are not in a position to export our oil. So, the President has also been requested by the cabinet to make all the necessary contacts so that the oil can continue to flow,” said Makuei on Friday after the Council of ministers’ regular meeting chaired by President Kiir.

South Sudan currently produces nearly 200, 000 barrels per day which it exports through the Sudanese port following the 2012 deal that allowed the Sudanese government to receive $25 per barrel of crude oil.