South Sudan will cease oil production that flows through neighboring Sudan due to the ongoing conflict that has further strained the country’s economy, a parliamentary official announced on Tuesday.
Oliver Mori Benjamin, the chairperson of the information committee of Parliament, stated that Petroleum Minister Puot Kang Chol informed lawmakers during a closed session that oil exports would only resume once the conflict in Sudan has ended.
A critical pipeline, which transports over 60% of South Sudan’s crude oil to Port Sudan for export, was damaged in February this year, worsening the current situation.
“There will be no resumption of oil until the war in Sudan subsides because our pipeline has been blocked,” Mori explained. He added that the government has dispatched a team to shut down the pipeline to mitigate further risks.
South Sudan’s oil exports have been suspended since February 6, 2024, following damage to the pipeline. A force majeure was declared on March 16 after operators of the Jabelyn-Port Sudan pipeline discovered gelling between Pump Stations 4 and 5, which are located in a military operation zone.
Juba’s oil production dropped from an average of 150,000 barrels per day (bpd) in 2023 to 90,000 bpd in March 2024. That same month, a major pipeline in Sudan ruptured, halting South Sudan’s ability to ship its crude oil through Port Sudan to international markets—the only channel for crude oil exports from landlocked South Sudan.
According to the Petroleum Ministry, only 1.2 million barrels of South Sudanese oil were shipped to international markets in March, compared with 2.2 million in February and six million in January.
South Sudan is currently grappling with a shortage of dollars due to declining revenues from oil production, which is its main source of income. This decline is attributed to depleted wells and the ongoing conflict in neighboring Sudan.