Sudan/South Sudan: Oil Cooperation with South Sudan Could Alleviate Neighboring Sudanese Crisis

Feb 24, 2022 | Grace Goodrich, Energy Capital & Power
View Original

Exporting its crude via pipeline from Hegleig and Paloch to Khartoum and then to Port Sudan, South Sudan shares the same economic lifeblood as that of its northern neighbor: oil. While South Sudan maintains the bulk of the region’s 3.5 billion barrels of proven reserves, Sudan owns and operates the export pipelines, refineries and sea access that transports that oil to global markets. Following South Sudan’s secession in 2011, the two nations signed an agreement stipulating the use of oil facilities and pipelines, as well as the compensation owed by South Sudan to Sudan for the loss of oil production revenue and destruction of pipeline infrastructure caused by the civil war.