• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 9 minutes US oil facts
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours Europe gas market -how it started how its going
  • 9 hours Amazing!...see article: "Turkmenistan To Close "Gates Of Hell" Gas Fire" by Irina Slav
  • 2 days Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
  • 2 days Is $100 Crude Bad For US Shale? That's what Oil CEOs Say
  • 1 min Ukrainian Maidan after 8 years
  • 2 days Nuclear power in Russia
Natural Gas Prices Spike On Colder Weather

Natural Gas Prices Spike On Colder Weather

The East Coast is experiencing…

A Watershed Moment That Could Send Oil Prices To $100

A Watershed Moment That Could Send Oil Prices To $100

Porfolio manager Eric Nutall is…

South Sudan Oil Hopes Thwarted Once Again by Civil War

A month after announcing oil production would resume, Sudan's peace agreement is cracking. Five days of heavy fighting have forced tens of thousands of people, mainly from South Sudan’s capital, Juba, to flee the bloody violence and attempt to cross borders.

The fighting comes after South Sudan announced in late May that it would resume oil production this month, after two years of civil war—over oil—had finally come to a close. Those plans are now once again placed on the back burner.

Yesterday, the BBC reported that Germany, the UK, Italy, Japan, India, and Uganda are working to remove their citizens from South Sudan in the wake of the fighting to ensure the safety of their citizens.

Although a “ceasefire” has been reached between President Salva Kiir’s forces and Vice President Riek Machar’s forces, the likelihood that South Sudan will stick to its plans to resume oil production in July is slim.

South Sudan gained its independence from Sudan in 2011, also gaining control of about 75 percent of Sudan's oil production.
Unfortunately for South Sudan, it is landlocked, and must depend on Sudan’s pipeline through Sudan to get the oil to the Bashayer port along the Red Sea. Sudan, who lost 75 percent of its oil revenue in the deal, managed to retain pipelines and facilities, allowing it to levy transfer fees on South Sudan for the transport of that oil through its territory.

In January 2012, South Sudan shut down its oil fields in protest of what it thought was unfair fees. The oil production was stymied until March 2013, resuming after another agreement was reached, only to be halted once again that December after an armed civil conflict began.

Shortly thereafter, the Oil &Gas Journal predicted that Sudan had 1.5 billion barrels and South Sudan had 3.5 billion barrels of proved oil reserves, as of January 1, 2014. China’s state-owned National Petroleum Corporation (CNPC), one of three companies that previously operated in South Sudan, holds a 40% stake in a joint venture that once operated there, along with operating a 1,600 kilometer export pipeline that carries crude through abutting Sudan to Port Sudan.

The recent bloodshed once again makes South Sudan oil production unlikely---a situation that negatively impacts both South Sudan and Sudan—along with China, who has been waiting in the wings for years.

By Julianne Geiger 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