• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 5 mins Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 37 mins The Inconvenient Truth Of Electric Cars
  • 6 hours California and Oil
  • 5 hours The Plastics Problem
  • 9 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 6 mins NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 8 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 3 hours Hydrogen FTW... Some Day
  • 3 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 1 hour Oil Demand Needs to Halve: Equinor
  • 9 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 20 hours What's more Important Iran Nuke Deal or Strong China Trade Deal. Hypothetically, If China offered Trump North Korean and Iran deals in exchange for concessions on trade deal should he take it ?
  • 18 hours Solar Panels at 26 cents per watt
  • 13 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)

SOUTH SUDAN: More Good News for Oil Production

Bottom Line: Following a long-awaited agreement with Sudan that has South Sudan ready to continue oil production, other developments bode well for South Sudan output, including the integration of rebel groups into the army and promising talks with Sudan that could resolve a dispute over ownership of assets belonging to former state oil company Sudapet. 

Analysis: As of last week, some 3,000 rebels of the South Sudan Liberation Movement (SSLM) surrendered and agreed to an amnesty deal that would integrate them into the South Sudan army, heralding an end to a long-running insurgency that has continued to plague oil production in the prolific north (Unity State) of the newly independent country. The SSLM was being supported by Khartoum, in Sudan, and it is not insignificant that they have now reportedly crossed the border into South Sudan and surrendered. Their strongholds were, after all, some key oil fields in Unity State.

South Sudan Oil Production

Another key factor impeding South Sudan’s output progress has been a dispute with Sudan over the assets of Sudapet. On Monday, South Sudanese officials met with their Sudanese counterparts in Uganda to discuss a resolution to this dispute that could sort out this asset ownership. Sudan wants $2 million in compensation for Sudapet assets lost to South Sudan, which gained 75% of Sudan’s oil production in the divorce. It is also demanding compensation for damage to oil facilities that were occupied in skirmishes in April 2012 by South Sudan.

Recommendation: There have been many stops and starts in peace talks between Sudan and South Sudan, but this time around we see real forward movement. It is key that the SSLM have surrendered and accepted an amnesty deal. Also indicative of this positive trend was a visit earlier in April by Sudanese President Omar Hassan al-Bashir to South Sudan—his first ever visit since July 2011 when South Sudan gained its independence from Khartoum. Talks were about jump-starting economic relations and cross-border trade. Regarding Sudapet, talks will be tough, but we think we are at the stage now in which both sides will be willing to compromise on trend with recent developments.




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