South Sudan, Sudan collaborate to prevent oil shutdown, says Petroleum Undersecretary

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South Sudan, Sudan collaborate to prevent oil shutdown, says Petroleum Undersecretary
South Sudan, Sudan collaborate to prevent oil shutdown, says Petroleum Undersecretary

Africa-Press – South-Sudan. The Ministry of Petroleum has said South Sudan’s crude oil exports have resumed after an interruption caused by drone strikes on Port Sudan last week, adding that it’s working closely with Sudan to address the shutdown order.

According to the Undersecretary, the oil exports remain largely uninterrupted despite logistical setbacks caused by recent unrest in Sudan.

Eng. Deng Lual Wol, who spoke on Tuesday, said the flow of crude oil was affected for only two days following a reported attack on a substation along the export route in Sudan.

This comes after the Sudanese Ministry of Energy and Petroleum instructed the technical team to fast-track a shutdown action plan if the situation did not improve in a letter addressed to South Sudan last week.

Eng Deng Lual said the matter is being handled jointly by authorities in both countries.

“Ministry of Petroleum is working closely with the Minister of Energy and Petroleum of Republic of Sudan to settle the matter, and hopefully it will not reach to the stage of putting the shutdown plan in action, as it was mentioned in the letter that was sent from the Ministry of Energy and Petroleum of Sudan.

“So, we are closely working with stakeholders to address the issues,” he said.

Eng Lual added that the attack temporarily halted the loading of vessels at Port Sudan due to safety concerns.

But confirmed that five cargoes have since been loaded, mostly belonging to foreign oil companies operating in South Sudan.

“In the first resumption, we have five cargoes, and these cargoes majority of them are going to the partners as operating costs. The partners always put their money, we call it a cash call.

“They inject the money to extract the oil, and then after the oil comes out and reaches Port Sudan, then they do a calculation, put aside the operation costs (OPCS). Then what remains is what the partners and government will divide.

“So that’s why the majority of the cargo will always go to the partners because they will have operating costs and then profit oil that we share,’ he explained.

According to Eng. Lual South Sudan is currently producing crude oil from three major blocks, blocks 3 and 7 in Palouch oil fields, producing approximately 110,000 barrels per day.

Meanwhile, blocks 1, 2, and 4 in Unity oil fields pumped around 50,000 barrels per day, and block 5A Tharjiath oil field roughly 10,000 barrels per day.

Oil from these fields is transported through Sudan for export via Port Sudan.

However, he confirmed that oil export operations resumed two days after the drone attacks on Port Sudan, and no crude oil shipments remain stranded.

“These are the materials that are stranded, but about the oil, the export was only for two days, as the vessel did not manage to come. They declined during the attack time, but after two days, the vessel came and started the loading.”

Eng. Deng noted that high operating costs have affected government revenue, as most of the exported oil is being used to repay foreign partners who invested in production.

He said, despite regional instability and logistical obstruction, South Sudan’s oil sector remains operational, and recent disruptions have not derailed exports.

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