TLDR
- Sudan set to resume oil exports from South Sudan after 8-month pipeline halt.
- Pipeline repairs completed, signaling improved oil flow prospects.
- Uncertain timeline for restart due to previous interruptions from insecurity and flooding.
Sudan said that it is ready to resume oil exports from landlocked South Sudan, signaling that repairs on the pipeline, which has been out of service for eight months, are complete.
The pipeline, previously transporting over 150,000 barrels of crude per day to Sudan's Red Sea coastline, ceased operations in February due to gelling caused by a lack of diesel required to thin the crude.
Sudan's military-led government stated that "all obstacles have been resolved and the pipeline is ready," though no specific timeline was provided for the restart. The delays in repairs were attributed to insecurity and flooding, as the country has been engulfed in civil war since April 2023.
Key Takeaways
Sudan's readiness to resume oil exports from South Sudan marks a critical step in stabilizing its oil industry after months of disruption. While repairs to the pipeline have been completed, ongoing civil conflict and security concerns may continue to pose challenges to the country's oil infrastructure and the broader economy.
