• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.

South Sudan Backtracks On Plans to Take Over Oil Industry

South Sudan’s plans to assume control of oil fields from foreign companies, whose contracts expire in 2027, cannot feasibly be realized due to lack of financing and capabilities, Bloomberg has cited the newly independent country’s national planning body as saying during a national economic conference. 

The original plan was for South Sudan’s state-owned Nile Petroleum Corp. to take over foreign oil operations when contracts expired. 

Private operators in South Sudan’s oil industry include China’s giant CNPC and Malaysia’s Petronas. Also on the top of the conference agenda was a plan to create an alternative pipeline that would allow land-locked South Sudan a second outlet for getting its oil to market, bypassing Sudan, which is mired in civil war. While Sudan’s raging war has not yet affected South Sudan’s oil exports, fears are rising that as the conflict continues to intensify, oil will be at risk. 

On Sunday, a drone attack on an open market in Khartoum, the Sudanese capital, killed dozens of people as the country’s military and a rival paramilitary group fight for control. 

Over the weekend, South Sudan’s president, Salva KIir, told a conference that the war in Sudan, ongoing since April, is wreaking havoc on the region’s economies through a massive influx of refugees.

There are also mounting fears that South Sudan itself could slide back into civil war amid growing anger over the use of the country’s oil revenues. 

Recovering from civil war itself, which only ended in 2018 with a shaky power-sharing agreement, South Sudan’s economy has not been stabilized. As noted by the Crisis Group, during the war, President Kiir “mortgaged future oil exports for advance loans from a small group of commodity traders and commercial banks, piling up debt while hiding the country’s finances ever further from sight”. 

By Charles Kennedy for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News