South Sudan worries neighbour’s troubles could threaten oil exports

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South Sudan worries neighbour’s troubles could threaten oil exports
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Smooth flow of the resource is key for the economies of both countries

South Sudan's energy minister, Ezekiel Gatkuoth, attends the reopening of the first session of the transitional national legislature at parliament in Juba, South Sudan, May 14 2019. Picture: REUTERS/ANDREEA CAMPEANU

Two pipelines deliver about 175,000 barrels of oil a day to a port in Sudan, the country from which South Sudan seceded in 2011 after a lengthy conflict, according to the nation’s oil minister Ezekiel Gatkuoth. While Sudan’s President Omar al-Bashir was ousted after popular protests, the military, which is running the country, is at loggerheads with the opposition over who should rule.

The smooth flow of oil to Port Sudan, on the Red Sea, is key for the economies of both countries. South Sudan depends on oil for most of its foreign exchange and Sudan benefits from transport fees, which compensate it for losing 75% of its oil production when South Sudan seceded. South Sudan has agreed to participate in the Opec+ cuts deal, but Gatkuoth said it hasn’t yet curbed production since it is pumping below its full potential. The minister was to attend a meeting of the group’s joint technical committee in Jeddah, Saudi Arabia, this weekend.

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