US welcomes the resumption of oil production in S. Sudan
April 6, 2013 (KHARTOUM) – The United States has welcomed the resumption of oil production in South Sudan, saying it signaled an important step in implementing a cooperation agreement it signed with Sudan last September.
The Sudanese government announced on Friday that the first barrels of oil would begin to flow through the pipelines to Port Sudan on Saturday.
“We congratulate both countries on this important step in implementing the cooperation accords they signed on 27 September 2012”, the US embassy in Khartoum said in a statement on Saturday.
“We welcome the spirit of cooperation between Sudan and South Sudan and urge the leadership of both countries to continue the full and immediate implementation of the agreements”, it added.
South Sudan took with it nearly three quarters of the oil wealth when it seceded from the north in July 2011, but remains dependent on Sudanese infrastructure to pump its oil to export markets.
The resumption of oil production marks the first stage in the implementation of a wider cooperation agreement signed by both countries in the Ethiopian capital, Addis Ababa.
South Sudan halted oil production last January following a dispute with Sudan over transportation fees.
In an increasingly bitter argument, the South also accused Sudan of diverting oil for its own profit.
Speaking to the press on Friday, Sudanese government spokesman Barnaba Marial said oil production would restart in Tharjiath oilfield in Unity state’s Koch county before being pumped north to Port Sudan via a 1,400 kilometre-long pipeline.
Another oilfield in the Heglig/Panthou area in Pariang county is also expected to resume production in the coming days.
Both countries have suffered a severe economic downturn as a result of the loss of oil revenues, with South Sudan depending on oil for 98 per cent of its revenue.
The worsening economic crisis following the oil shutdown forced both countries to cut back on spending, as well as introduce a raft of austerity measures.
The two countries as a result of the oil shutdown had to cut back on spending in their institutions by introducing austerity budgets.
(ST