South Sudan oil will resume flowing to Port Sudan today
April 6, 2013 (JUBA) – The first barrels of crude oil from the oilfields in the oil-rich Unity state of South Sudan will begin to flow today through the pipelines to Port Sudan, announces the government on Friday.
The minister of Petroleum and Mining, Stephen Dhieu Dau, and other accompanying senior officials will travel to Tharjiath oilfields on Saturday to witness the pumping of the first barrels of the oil through the pipeline.
The resumption of the oil production will be the first event in the implementation of the economic deal of the cooperation agreement signed in Addis Ababa between the two regions of the former Sudan who split in July 2011.
Another oilfield, known as Unity Oilfield in Unity state in the area of Heglig/Panthou in Pariang County is also expected to resume the production in few days.
South Sudan shut down its oil production in January last year, accusing Sudan of stealing or confiscating the oil due to a disagreement over how much transit fees the new oil-producing nation should pay to its neighbour.
The situation had affected the economies of both countries that largely depended on oil revenues in order to run their machineries.
The two countries as a result of the oil shutdown had to cut back on spending in their institutions by introducing austerity budgets.
In South Sudan the government cut off a number of allowances, including the housing allowances that used to top up to the salaries resulting into the loss of nearly 50% of the overall salary of a civil servant in a country where accommodation poses a big challenge.
Despite the resumption of the flow today it may take weeks before the empty pipeline fills up with the crude oil ready for loading at Port Sudan.
Petroleum minister Dau on Friday also announced that South Sudan and Sudan will organize a coordinated celebration in three weeks on the resumption of the oil production.
(ST)