• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 3 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 2 hours Oceans "Under Fire" Of Plastic Trash
  • 2 mins Socialists want to exorcise the O&G demon by 2030
  • 21 hours Is Natural Gas Renewable? I say yes it is.
  • 5 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 1 day Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 4 hours Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 22 hours Making Fun of EV Owners: ICE-ing Trend?
  • 21 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 13 hours Cheermongering about O&G in 2019
  • 12 hours North Sea Rocks Could Store Months Of Renewable Energy
  • 5 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day Orphan Wells

As Sudan-South Sudan Oil Battle Re-Ignites, South Sudan Risks Instability

Bottom Line: An oil agreement between Sudan and South Sudan is off track—again, and only Ethiopian mediation has managed to postpone for two weeks Sudan’s threat to shut down the pipeline carrying South Sudanese crude.

Analysis: In early March, Sudan and South Sudan reached an agreement for the resumption of South Sudanese oil exports through Sudanese infrastructure. There have been oil deals before and they were dead in the water because they didn’t come along with border security agreements. But in March, things looked more optimistic, with both sides agreeing on a withdrawal of troops and the creation of a demilitarized zone to facilitate the flow of oil. Oil hasn’t flowed for about a year after South Sudan blocked exports via Sudan over a tariff dispute.

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. 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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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