Sudan has lifted a 10-month-long force majeure on the oil pipelines that transport South Sudan’s crude to the Red Sea port of Port Sudan. This decision comes after improved security conditions and new arrangements between Sudan, South Sudan, and BAPCO, the Sudanese company managing the pipeline.
The force majeure was imposed in March 2024 following a significant pipeline rupture caused by active military conflict in Sudan. The pipeline, which carries South Sudan’s oil through Sudan to the Red Sea port, was damaged amid ongoing clashes between Sudanese forces and the paramilitary Rapid Support Forces (RSF) in Khartoum.
The conflict, which began in April 2023, has severely disrupted South Sudan’s oil exports, as the country depends heavily on the pipeline for its oil shipments. As a result, revenues have dropped sharply for South Sudan, which relies on oil for 90% of its state income.
However, the security situation in Sudan has since improved, prompting the lifting of the force majeure. On January 4, Sudan’s Ministry of Energy and Petroleum officially notified South Sudan’s energy minister in a letter that the force majeure had been removed. The letter, signed by Sudan’s Minister of Energy and Petroleum, Mohiedienn Naiem Mohamed Saied, confirmed the restoration of oil flows through the pipeline.
The decision is based on newly established security arrangements between Sudan, South Sudan, and BAPCO. These measures are expected to ensure the safe and reliable transportation of oil from South Sudan to the Port of Sudan.
Related Topics:
- Brent Crude Oil and Silver Prices Drop Again
- WTI Stays Positive Above $71.50 as API Reports Decline in Crude Inventories
- Oil Futures: Crude Maintains Year-End Gains, Brent Approaches $75 per Barrel