• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 41 mins Climate Change: A Summer of Storms and Smog Is Coming
  • 14 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 4 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 3 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 2 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 12 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 3 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 12 hours Itt looks like natural gas may be at its lowest price ever.
  • 15 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day students walk out of school in protest of climate change
  • 11 hours Saudi A to Splash $100 Bln on India
  • 6 hours NEW FERUKA REFINERY

Global Energy Advisory - 19th December 2014

Politics, Geopolitics & Conflict

The Sudans: Where Oil Fits in

A year ago this week, South Sudan became embroiled in a civil war that has so far killed tens of thousands of people and put paid to its embryonic independence from Khartoum. It started when rebel forces targeted South Sudan’s oil fields shortly after fighting broke out in the capital, Juba. At stake is control of some 75% of all of Sudan’s oil production.

The situation in South Sudan was already unsustainable due to the civil war (production had already dropped from 350,000 bpd to 160,000 bpd), and now with oil prices dropping below $65 per barrel, this economy, solely dependent on oil revenues, has collapsed.

Interested parties can claim that Sudan’s woes have always been about irreconcilable tribalism, but this is a convenient argument that has long been used by Khartoum to its own ends. Oil has played a distinctive role in the more horrific of these ‘tribal’ problems. Recall that in 1972, north and south Sudan signed a peace agreement that stipulated equal sharing of the south’s resources (50/50). At this time, it was thought that the only valuable resource in south Sudan was uranium, so when oil was discovered in the south shortly after this peace agreement, Khartoum sought to change the rules of the game: there would be no equal sharing of valuable oil resources. In 1978 Chevron found a key oil field near the north-south border. Several years…

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