A vital pipeline transporting oil from South Sudan through Sudan for export has been facing disruptions since February. This comes amidst ongoing conflict between Sudan’s army and a paramilitary group, the Rapid Support Forces (RSF).
Force Majeure Declared
On March 16th, Sudan’s oil ministry officially declared “force majeure” on oil deliveries. This legal term essentially frees them from contractual obligations due to unforeseen events, in this case, the ongoing fighting.
Pipeline Issues and Blaming Game
The stoppage seems to be a result of two incidents. First, a blockage occurred in February due to a process called “gelling,” where oil solidifies in the pipeline. Then, a major rupture was discovered at another location. Both incidents happened in areas currently experiencing clashes.
Sudanese officials aligned with the army point fingers at the RSF, claiming the stoppage happened in their controlled territory. However, the RSF denies responsibility and insists on upholding the oil export agreement with South Sudan.
Uncertain Impact
The exact amount of oil affected and the resulting financial losses remain unclear.
South Sudan’s Economic Lifeline Disrupted
South Sudan relies heavily on this pipeline to export roughly 150,000 barrels of oil daily. These exports are a major source of income for the country, with Sudan receiving a fee for allowing the oil to pass through its territory.
The conflict not only disrupts this crucial income stream for South Sudan but also threatens the transit fees Sudan receives.
Unresolved Situation
With communication networks down in Sudan due to the fighting, resolving the pipeline issues becomes even more challenging. The lack of response from South Sudan’s oil ministry adds to the uncertainty surrounding a solution.
The Petrodar Pipeline: A Key Infrastructure
The pipeline in question, called Petrodar, stretches over 1,500 kilometers and is operated by a consortium involving Chinese and Malaysian companies. It plays a critical role in transporting South Sudan’s oil to the Red Sea coast for export.
The ongoing conflict in Sudan disrupts this vital infrastructure, impacting the economies of both South Sudan and Sudan.
