Sudan fears fighting in South could hit oil flow
July 11, 2016 (KHARTOUM) – Chair of the energy committee at the Sudanese parliament Hayat al-Mahi has expressed concern over the impact of the armed conflict in South Sudan on Sudan especially with regard to oil pumping.
In press statements on Monday, al-Mahi said the fighting in South Sudan didn’t yet reach the oil production areas but warned that oil pumping would stop if the armed clashes expanded to oil fields.
“Stopping oil pumping would damage the pipeline and [we] would need to make technical remedies to restart the pipeline,” she said.
Presently, South Sudan is producing oil at 160,000 barrels per day, despite a decline in its oil production due to the violent conflict that engulfed the young nation, killing thousand and displacing nearly two million people.
The flow of South Sudan’s oil through Sudanese territory is crucial for both countries.
In 2013, the then deputy Governor Central Bank of Sudan, Badr al-Din Mahmoud said the country had lost about $ 5 billion dollar when South Sudan moved to suspend oil production following a dispute over transit fees with Sudan.
South Sudan’s economy is also reliant on oil production and exportation. But the landlocked country relies on Sudan for exportation of its crude.
South Sudan seceded from Sudan on July 9th 2011 following a referendum on whether the semi-autonomous region should remain a part of the country or become independent. 99% of the southern voters chose independence.
(ST)