Sudan-South Sudan Oil Export Talks Collapse, Economic Crisis Looms
Negotiations between Sudan and South Sudan over revised oil transit fees have reached a deadlock, threatening South Sudan’s already fragile economy and its vital 350,000 barrels per day oil export capacity. The failure to reach agreement leaves the landlocked nation’s energy infrastructure hanging in the balance.
South Sudan’s dependence on Sudan’s pipeline network to export crude oil through Port Sudan has created a critical vulnerability, with the ongoing conflict having already halted exports for nearly a year before a tentative resumption in early 2025. Technical sources warn that Sudan’s proposed fee adjustments could devastate South Sudan’s petroleum-dependent economy.
In response to the crisis, South Sudan’s government is pursuing emergency alternatives, including discussions with China National Petroleum Corporation for a new pipeline to Djibouti. A groundbreaking agreement with Russian energy giant Rosneft, finalized at the Saint Petersburg International Economic Forum, promises modern pipelines and refineries to reduce dependency on Sudanese infrastructure.
Source: cityreviewss.com