Halting South Sudan’s Oil Exports via Sudan: Technical or Political Reasons?

Report by Al-Nour Ahmed Al-Nour

Just days before the resumption of South Sudan’s oil exports through Sudanese ports—after nearly a year-long suspension—Khartoum began shutting down the oil pipeline again. Observers see the move as both a political and economic message directed at Juba, which Sudanese government circles accuse of supporting the Rapid Support Forces (RSF).

A source in Sudan’s Ministry of Energy and Petroleum said Sudan notified the South Sudanese government that it had instructed oil companies to begin shutting down the pipeline transporting crude oil from South Sudan to the export ports in Port Sudan, according to Al Jazeera’s correspondent in Sudan.

Sudanese Minister of Energy and Petroleum, Mohieddin Naim, attributed the move in a letter to his South Sudanese counterpart to drone attacks by the RSF targeting oil facilities in Sudan.

The letter explained that on May 9, a drone attacked a pumping station in Al-Hudi, east of Atbara in the Nile River State, causing extensive damage. A day earlier, a drone had attacked a fuel depot in White Nile State.

The letter also noted that attacks on power stations had led to electricity outages at marine terminals, affecting their ability to simultaneously load crude oil. Furthermore, targeting depots poses the risk of a severe shortage in the fuel supplies essential to transportation systems.

Why does South Sudan export its crude oil via Sudan’s Red Sea ports?

Since their separation in 2011, landlocked South Sudan has relied on Sudan’s Port Sudan on the Red Sea to export its oil. The country produces around 100,000 barrels of crude per day—a vital source of revenue for both nations.

Most of the oil fields and technical processing centers are located within Sudanese territory, and the pipeline infrastructure was established before the secession. Juba considered alternative pipeline routes through Kenya or Djibouti via Ethiopia but found them economically unfeasible. Sudan remains the best option under current circumstances.

Is this the first halt in oil exports since the South’s secession?

In February 2024, Sudan’s Energy Ministry declared a force majeure after oil flow was disrupted due to pipeline freezing—technically caused by the RSF’s control of two pumping stations in White Nile State and East Khartoum State.

In March, Sudan’s Petroleum Ministry informed its South Sudanese counterpart that the force majeure had been lifted, and crude began flowing again.

Previously, oil exports from South Sudan through Sudanese pipelines resumed in April 2012 after more than a year of suspension due to rising tensions over oil revenue sharing and transit fees.

How much oil does South Sudan produce?

South Sudan possesses significant proven oil reserves, ranking third in Africa. As of 2020, reserves totaled around 3.5 billion barrels, most of which remain untapped due to inadequate infrastructure and limited investment.

Upon gaining independence in July 2011, South Sudan inherited 75% of Sudan’s oil reserves. It exported around 150,000 barrels per day under a post-independence agreement, accounting for two-thirds of the former united Sudan’s oil output.

At its peak before civil war, South Sudan produced between 350,000 and 400,000 barrels of crude oil per day.

What agreements govern oil export between Sudan and the South?

Following secession, both countries signed an agreement allowing South Sudan to export oil via two pipelines: one stretching over 1,500 kilometers from Melut Basin in Upper Nile State to the Bashayer terminal on the Red Sea, and another from Unity State to the same terminal.

According to a Sudanese Petroleum Ministry official speaking to Al Jazeera Net, the agreement includes the use of technical processing facilities and the operation of six pumping stations on Sudanese soil to transport the oil to Bashayer.

How does Sudan benefit financially?

The unnamed official said Sudan earns $25 per barrel, covering oil processing, transportation fees, sovereign charges, and a share from the transitional financial arrangement meant to compensate Sudan for the revenue lost after the South’s secession.

Sudan also receives 10,000 barrels daily as its crude share for refining at the Khartoum refinery. Sudan’s production dropped from 100,000 barrels daily after the South’s secession to about 60,000 before the war, and now stands at roughly 15,000 barrels per day.

Additionally, Sudan receives 18,000 barrels per day, deducted from transit fees, to operate the Um Dabakir power plant in White Nile State.

These revenues and services partly offset the losses Sudan incurred when it lost two-thirds of its oil production after the South’s independence. Oil had accounted for about 90% of Sudan’s foreign currency earnings, according to the official.

How much does the South Sudanese government earn?

The oil sector is the backbone of South Sudan’s economy since independence. Oil constitutes around 98% of government revenues and 60% of GDP, serving as the main source of foreign currency.

The South has built small-scale refineries that provide fuel locally, contributing to service stability and reducing reliance on imports.

Economic researcher Khalid Suleiman told Al Jazeera Net that South Sudan has a direct interest in resuming oil exports to maintain political and economic stability. All development expenses and public sector wages rely on oil income. For nearly a year, government employees and some military personnel have gone unpaid, while the local currency (the pound) lost over 70% of its value. Prices of goods and services have surged since oil exports halted.

Is Sudan’s threat to halt South Sudanese oil exports driven by technical or political motives?

Observers believe technical difficulties arose after RSF drones bombed power stations near Port Sudan, which feed the pumping stations for South Sudanese crude oil, leading to operational shutdowns. A fuel depot used to power export-related equipment also burned down in the attack.

However, observers do not rule out political motives. Sudan may be using the threat of halting oil exports to pressure Juba, which international reports and army-linked platforms accuse of aiding the RSF by allowing weapons and fuel transfers into Darfur through their shared border, and of permitting mercenaries to fight alongside the RSF—many of whom have reportedly been captured or killed.

Source: Al Jazeera Net