Sudanese Crisis: South Sudan’s Oil Export, Economy  Face Uncertain Future

By Enitan Akinlabi, Head, Foreign/ Diplomatic Desk

The Sudanese civil war which erupted April last year is taking a huge toll on the neighbouring South Sudan’s oil export and economy.

The land locked country which until 2011 when it gained independence, was the Southern part of the Republic of Sudan is rich in crude oil butdepends on its war ravaged neighbour, Sudan, for its oil export.

According to South Sudanese Ministry of Finance, the country, for the past six months, has not exported oil through Sudan, owing to the ongoing war which has worsened its economy.

“From our knowledge, it is now six months, actually going to seven months now since we stopped exporting oil because of the conflict in Sudan, and has greatly affected our efforts to generate revenues”, a top South Sudanese official at the Ministry of presidential affairs told said.

The 1st undersecretary in the Finance Ministry, Malual Tap confirmed the developed but expressed hopes of a resumption soon.

“Let me say, maybe good news but with caution and optimism. I have to approach it from Sudan, likely in one month, maybe we will be able to resume our oil exports but until then, we will continue to struggle”, said Tap.

He was of the opinion that it was time the country and its leadership move forward to diversify the economy, moving away from depending on oil revenues exported to the international markets for sale through Sudan now engulfed in a raging war.

“I think it is high time for our people to move and develop other sectors so that if oil is not flowing or being affected by outside factors, we can rely on other sectors, more importantly the agriculture and the mining sectors but above all, we should switch our main focus to the most sustainable revenue we have in our country and that is non- oil revenue.  We have been relying on one commodity, the oil. and as we speak today, it has been six months without exporting our oil, especially the Dar blend that used to our budget”, he stressed.

This magazine gathered  that South Sudan and oil companies have been in dialogue with parties to the conflict in Sudan, but it appears challenges have not fully been resolved to permit resumption.

The military-led Sovereign Council of Sudan controls the port while the reb Paramilitary Rapid Support Force are operating in the area where the facilities of the pumping station are located.

Revenues from oil account for over 90 percent of South Sudan’s annual budget.