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Daily Briefing: Sudan and South Sudan Sign Deal to Resume Oil Production from Key Fields

The new agreement includes production at the Unity and Toma South fields will be prioritized, with 15,000 b/d from Block 5A expected to come online very soon.

The Sudanese Minister of Energy and Mining, Kheiri Abdelrahman, confirmed Sudan’s commitment to providing aid in oil production in South Sudan “based on the eternal and historical relations between one people in two countries”.

Abdelrahman stressed at the signing ceremony that the new leadership of the oil sector in Sudan, following the overthrow of Omar Al Bashir last year, “is working in a different spirit and with a firm desire to exploit the wealth of the two countries for the benefit of their peoples,” with a specific focus on economic cooperation.

South Sudanese Minister of Petroleum Puok Kang Chol described the agreement as a real step towards increased cooperation between the two countries. He said a Sudan Coordination Office will be established in Juba.

Both the countries, which depend heavily on oil revenues have seen their economies devastated by the coronavirus pandemic, which wrought havoc on oil prices and demand.

Sudan will also help in providing technical support for Blocks 3 and 7 in its southern neighbor.

The signed draft also includes financial arrangements and the supply of quantities of crude oil to the Um Dabakir power plant and Khartoum refinery in Sudan. Materials and equipment related to the landlocked South Sudanese oil sector will be sent to Port Sudan.

Sudan, which lost most of its oil wealth in South Sudan’s secession in 2011, is keen to continue benefiting from exporting its neighbour’s oil through its pipelines and Red Sea ports to help its crumbling economy recover.

 

 

 

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