South Sudan oil production faces challenges due to Sudan conflict

February 20, 2024 (JUBA) – South Sudan’s oil production continues, but the ongoing conflict in neighbouring Sudan is creating logistical hurdles and impacting operations, according to South Sudan’s oil ministry.

William Anyak Deng, undersecretary of the ministry, stated that while production itself remains uninterrupted, essential supplies like chemicals, fuel, and equipment are facing disruptions due to the fighting.

“The war in Sudan is affecting the operations of oil companies in areas experiencing military activity,” Deng explained. “Movement of supplies and personnel is disrupted, posing challenges for smooth operations.”

He added that although companies like Bashayer Pipeline Company have encountered difficulties delivering supplies to specific production stations, overall operations are “running normally.” However, he acknowledged that the situation is fluid and requires “case-by-case” attention.

Analysts warn that the prolonged conflict in Sudan could significantly impact South Sudan’s oil industry unless peace efforts succeed. Landlocked South Sudan relies heavily on Sudan’s infrastructure to export its oil, with oil revenues accounting for 85% of the country’s budget.

A recent letter from Bashayer Pipeline Company to Dar Petroleum Company, obtained by Sudan Tribune, highlights the concerns. The letter, dated February 16th, 2024, and addressed to DPOC’s acting president, Ayoung Bol Deng, expresses concerns about the security situation and its impact on delivering diesel to production station number 4.

“The situation along the pipeline is not secure,” the letter states, considering most of the area a war zone. “The most critical issue is the supply of diesel to PS#4 and restarting heating, essential for smooth operations.”

The letter emphasizes the company’s efforts to deliver diesel but requests DPOC’s and other relevant bodies’ support to resolve the issue and ensure production continuity.

(ST)