Al-Nayer belittiles the impact of the disruption of southern oil on Sudan
Sudan Events – Rehab Abdullah
Economist Dr. Muhammad Al-Nayer greatly belittiled the impact of the cessation of South Sudan’s oil exports on Sudan’s economy, despite his acknowledgment of its impact on the economies of the two countries.
Al-Nayer acknowledged during a statement to (Al-Ahdath) the impact of stopping the flow of oil on Sudan’s economy, however, he said that it was not to a large extent. He attributed this to the fact that what Sudan gets from exporting South Sudan’s oil was not the same as in the past when South Sudan was producing at its maximum capacity. It is known that when South Sudan separated, its production was more than 330,000 barrels per day, but it decreased due to the security disturbances that took place in South Sudan in Al-Wihda State and neighboring states, which led to the complete cessation of oil production in these areas. Consequently, South Sudan’s oil production decreased to perhaps 150 or 100 thousand barrels. Therefore, the impact of this issue on Sudan was not great. However, he acknowledged its benefit to Sudan, saying that it could have helped in such circumstances that Sudan is going through in improving the economic situation with regard to the foreign exchange revenues obtained as transit fees and sovereign fees for transporting to South Sudan.
Al-Nayer stated that stopping the passage of oil affects the economy of South Sudan to a large extent, as he justified this to its reliance on oil revenues as the main source of the state’s general budget and foreign exchange which amounted up to 80% or 90%.
He stressed the need to find a solution to this matter because South Sudan has no other way out or alternatives to export its oil except through pipelines extending into Sudanese territory and secure the areas through which the pipes pass so that the pipeline can return to work again in the interest of South Sudan and the Sudanese economy at a reasonable rat, because the cessation of oil production leads to major technical complications in the future.
