South Sudan in talks with Sudan to avert oil export shutdown

May 15, 2025 (JUBA) – South Sudan said it was in talks with Sudan to prevent a shutdown of its crucial oil exports that transit through Sudanese territory, with a senior official citing “promising progress” from high-level interventions.

The discussions aim to reverse a recent directive from Khartoum that had asked oil operating companies to prepare for an export halt.

“Yes, there have been issues in the past few days, but a high-level intervention from all the stakeholders is making promising progress,” Deng Lual Wol, South Sudan’s petroleum undersecretary, told reporters in Juba.

“We are now in talks with our counterpart in Sudan for exports to proceed, rather than oil operating companies being advised to prepare for an export shutdown,” Wol added.

He said an understanding had been reached to continue oil production and shipments via Sudan, navigating uncertainties that followed recent drone strikes at a Sudanese maritime terminal. “It is commendable that we are in good understanding and collaborating with all those involved to prevent an oil shutdown,” Wol stated.

The initial warning from Khartoum came after Sudan’s Ministry of Petroleum and Energy wrote to South Sudan’s Ministry of Petroleum about the directive for companies. This followed an interruption at Port Sudan caused by drone strikes last week.

Sudanese authorities had attributed their decision to fears that further strikes could disrupt shipments at the port.

Landlocked South Sudan is heavily reliant on its northern neighbour for crude oil exports. Oil revenues constitute more than 90 per cent of South Sudan’s budget.