• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 2 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 7 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 16 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 3 hours Socialists want to exorcise the O&G demon by 2030
  • 6 hours Maritime Act of 2020 and pending carbon tax effects
  • 22 hours Chevron to Boost Spend on Quick-Return Projects
  • 22 hours Conspiracy - Theory versus Reality
  • 1 day UK, Stay in EU, Says Tusk
  • 2 days What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 2 days German Carmakers Warning: Hard Brexit Would Be "Fatal"
Alt Text

EIA: OPEC Production To Fall By 1 Million Bpd This Year

The Energy Information Administration expects…

Alt Text

Are Conventional Producers Really Losing Influence?

While it’s shale that catches…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

South Sudan Oil Under Fire as Rebels Take Capital

After two months of violence, South Sudanese rebels have largely seized control of the capital city, Malakal, threatening to upset the oil production in the newly independent state’s only remaining producing region.

South Sudanese government officials on Tuesday confirmed that the rebels had reached the town and could have taken control over more than half of Malakal.

South Sudan seceded from Sudan in July 2011. Along with this South Sudanese independence came 75% of Sudan’s oil resources—minus the infrastructure (pipelines and ports) which remains in Sudan. So South Sudan is now rich in oil, but it’s land-locked.

Related Article: Russian Lukoil Considers Re-Entry into Iranian Oil

The climax came in December 2011, just a few months after South Sudan seceded, when Sudan started diverting South Sudanese oil to its own refineries and selling it illegally on international markets. South Sudan lashed back by shutting off the pumps in January 2012. Neither could maintain this absence of oil revenues for much longer. (About 98% of South Sudan’s state revenue comes from the production of about 350,000 barrels of oil per day).

The stickler during negotiations was Khartoum’s (Sudan) insistence on guarantees that South Sudan would cease backing rebels fighting in the South Kordofan and Blue Nile states—oil-producing regions that haven’t been fully demarcated. Sudan softened its stance to allow for the creation of a buffer zone instead.

In mid-March 2013, South Sudan ordered the resumption of crude oil production, but these nascent agreements soon fell apart as well, leading up to the current situation, which escalated once again two months ago.

In mid-2012, both sides nearly went to war over the Heglig oil field, which straddles a poorly demarcated border.

Related Article: Foreign Oil Companies Near Commercial Output in Uganda

The latest conflict has the potential to engulf oil fields in an area already troubled by regional conflict.

Combined, the two countries produced around 115,000 barrels of oil per day last year, less than half the volume produced in the years before South Sudan's independence.

At independence, South Sudan's oil production was around 350,000 bpd, before Juba ordered the China National Petroleum Corp, India's ONGC Videsh and Malaysia's Petronas to halt production.

Work in some fields has been suspended due to lack of staff to run the facilities, with many foreign nationals evacuated and most South Sudanese having to flee for security reasons.

By Charles Kennedy of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News