• 2 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 6 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
Alt Text

Libyan Oil May Be Slipping Out Of Putin’s Reach

Last Friday, the Benghazi Defense…

Alt Text

Who Gets Control Of Libya’s Oil As The Guns Go Silent?

The Libyan National Oil Corporation…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

South Sudan not Ready for Oil Prime Time

South Sudan not Ready for Oil Prime Time

South Sudanese President Salva Kiir accused his former vice president of launching a coup earlier this week, sending the world's newest nation into political turmoil. Rocked by conflict last year over oil-rich areas along a shared border with Sudan, the latest troubles could undermine economic hopes for a troubled region.

Former Vice President Riek Machar said recent political conflicts in Juba, the nation's capital, weren't the result of a coup but part of a "misunderstanding" between presidential guards.

Machar was sidelined in a Cabinet shakeup earlier this year.

Related article: Emerging Oil Giant Kenya Gets Major Infrastructure Boost from China

More than 500 people were reported dead and hundreds more were reported injured from the fighting. The British Foreign and Commonwealth Office announced its embassy was open, though diplomats and their dependents were evacuated as a security precaution.

U.S. Ambassador to South Sudan Susan Page, for her part, met personally with President Kiir to discuss U.S. concerns about the violence and mounting death toll.  The United States helped broker the deal that secured South Sudan's independence in 2011, though border issues, ethnic fighting and disputes over oil have threatened the peace.

South Sudan, a landlocked nation, gained control over most of the region's oil through independence, though Sudan maintained control over export infrastructure. 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. In mid-2012, both sides nearly went to war over the Heglig oil field, which straddles a poorly demarcated border.

The latest conflict has the potential to engulf oil fields in an area already troubled by regional conflict. A crisis in Central African Republic, to South Sudan's east, is approaching the verge of genocide. In the Democratic Republic of Congo, U.N. peacekeepers discovered the butchered bodies of 21 civilians. The slaughter followed a truce reached between rebels and the DRC government from neighboring Uganda.

Related article: Weak Central African Republic Collapses

Energy consultant company Wood Mackenzie said a proposed $4 billion 869-mile pipeline from central Uganda to the Kenyan coast could help turn the area's oil sector around by 2019. Regional crises aside, Catriona O’Rourke, an upstream research analyst at Wood Mac, said there are a number of challenges to address in the region before a pipeline like that can be built, however.

South Sudan has pursued various pipeline proposals through neighboring countries. Last year, the government said it was open for business to U.S. oil investors, an invitation Ambassador Page said was generating a lot of interest.

South Sudan only recently turned on its oil spigots after voluntarily shutting production to protest pressure from Khartoum, however. Though potentially rich in oil, the infrastructure challenges alone mean hedging a bet in the region is the best bet to make.

By. Daniel J. Garber of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




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