Juba, South Sudan
*By John Kusolo*
President Salva Kiir has received a detailed report on the progress of resuming oil production and ensuring the continuous flow of oil to international markets. The briefing was led by a high-ranking South Sudan government delegation headed by Presidential Advisor on Security Affairs, Hon. Tut Gatluak, following their recent visit to Sudan. The discussions in Sudan marked an important step in rekindling bilateral ties and ensuring a sustainable flow of oil, a critical resource for both nations' economies.
During their visit, the South Sudanese delegation engaged in crucial talks with Sudanese authorities, including Sudan's Sovereign Council Chairman, Gen. Abdel Fattah al Burhan, on enhancing oil production and exportation efforts. A key topic of discussion was securing uninterrupted oil flow through Sudan's vital infrastructure to international markets via Port Sudan, a strategic outlet on the Red Sea. Sudan plays a pivotal role as a transit country, allowing landlocked South Sudan to export its oil through pipelines that stretch from the oil fields in the south to Port Sudan.
Hon. Tut Gatluak, while briefing President Kiir, underscored the commitment from both governments to ensure the resumption of oil production. Sudanese officials assured the South Sudanese delegation of their unwavering support, especially in safeguarding the oil production and export facilities, which have faced occasional disruptions due to regional instability.
“The Sudanese authorities have expressed their readiness to provide the necessary security to oil facilities and pipelines, ensuring that the oil flow remains uninterrupted," said Hon. Gatluak. "Both nations understand the economic importance of oil, not only for our countries but for regional stability."
South Sudan’s economy is heavily dependent on oil revenues, making the stability and functionality of oil production critical. The recent disruptions due to conflicts within Sudan, coupled with technical issues, had severely hampered oil output, placing strain on the young nation's fiscal stability. Resuming production is vital, not only for boosting South Sudan's export earnings but also for reinforcing the economic ties between Juba and Khartoum, which have historically been shaped by oil.
The delegation, which included South Sudan’s Minister of Petroleum, Hon. Puot Kang Chol, and the Undersecretary of the Ministry of Petroleum, Dr. Chol Thon Deng, stressed the importance of Sudan’s role in facilitating South Sudan’s oil trade. The two countries have worked together since South Sudan’s independence in 2011, navigating the complexities of oil extraction and transit. Both governments have benefited from the transit fees that Sudan charges for the use of its pipelines and export terminals.
A significant part of the South Sudanese delegation’s visit involved inspecting the readiness of the oil facilities in Port Sudan. They consulted with Sudanese oil sector experts to assess the current infrastructure and security of the facilities, ensuring they are prepared to handle the renewed oil flow from South Sudan’s oil fields.
Hon. Puot Kang Chol emphasized that the resumption of oil production will not only benefit South Sudan and Sudan but will also stabilize global oil prices as their exports re-enter the market. “We have agreed on a framework that ensures mutual benefits, and with the assurances we’ve received regarding the security of the infrastructure, we are optimistic that oil production will resume smoothly,” he remarked.
For South Sudan, oil accounts for nearly all of its government revenue, making it the lifeline of the country’s economy. The extended delays in production have had serious implications on public finances, causing economic strain. The renewed cooperation with Sudan is expected to ease this burden and improve the fiscal outlook for both countries.
For Sudan, facilitating the flow of South Sudanese oil provides much-needed transit fees, contributing to its own economic recovery. Sudan’s economy has been under considerable pressure due to political instability and international sanctions, and the resumption of oil flows could provide a vital source of revenue to help mitigate these challenges.
Both nations are eager to cement their relationship through the oil sector, as it also symbolizes a broader push for stability and cooperation in the region. The visit by South Sudan’s delegation demonstrates the strong commitment to working closely with Sudan for mutual economic gain and regional peace.
As South Sudan and Sudan move closer to fully resuming oil production and exports, the collaboration between their governments highlights the crucial role of oil in their bilateral relations. The successful implementation of the agreements reached will not only restore vital revenue streams for both countries but also contribute to stability and development in the broader East African region. The assurances of security and infrastructure readiness from Sudanese authorities provide a hopeful outlook for South Sudan’s oil industry, signaling a potential return to economic growth and prosperity.
*Key Figures in the Delegation*
Hon. Tut Gatluak – Presidential Advisor on Security Affairs
Hon. Puot Kang Chol – Minister of Petroleum
Dr. Chol Thon Deng – Undersecretary, Ministry of Petroleum
This crucial meeting marks a positive development in the quest to unlock South Sudan’s economic potential through its oil resources, supported by Sudan’s cooperation and expertise.
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