South Sudan Seeks Oil Supply Import Alternatives
June 15, 2023 – Juba, South Sudan. The Republic of South Sudan has announced its decision to import essential oil supplies through Djibouti and Kenyan ports instead of relying on Port Sudan, which has been affected by the ongoing conflict, according to the government’s Minister of Petroleum, Puot Kang Chuol.
During a press briefing, Minister Chuol highlighted the formation of an Emergency Response Team, approved by the cabinet and the country’s top leadership, including President Salva Kiir and First Vice President Riek Machar. This team aims to proactively mitigate the impact of the Sudan crisis on South Sudan’s oil production by rerouting logistics and transportation of critical materials, chemicals, and equipment.
To overcome disruptions caused by the crisis, the Ministry has decided to import essential supplies through the Mombasa port in Kenya, while also exploring the utilization of Djibouti’s port. Minister Chuol assured that the current inventories of critical materials, chemicals, and equipment in the oilfields are sufficient to sustain smooth production and exportation of crude oil for the next three months.
Despite the challenges, all oilfield facilities, including pipelines, pump stations, field processing facilities, and the export marine terminal in Sudan, remain well-protected and safe from damage. South Sudan continues to produce and export an average of nearly 170,000 barrels of crude oil per day.
The Emergency Response Team maintains constant communication and cooperation with authorities at the Port of Mombasa in Kenya and the Port of Djibouti to ensure timely clearance and transportation of critical materials, chemicals, and equipment required for South Sudan’s oilfield activities.
South Sudan heavily relies on oil revenue to finance its annual fiscal expenditure, making it vulnerable to economic challenges caused by the crisis in Sudan. In light of this, Minister of Presidential Affairs Barnaba Marial Benjamin encouraged investors to consider opportunities in the country. South Sudan possesses vast natural resources, including oil, gold, copper, iron, uranium, and fertile agricultural land. The government aims to attract national, regional, and international investors interested in various sectors such as mining, power generation and distribution, services, and infrastructure.
South Sudan remains committed to sustaining its oil production and exploring avenues for economic growth, despite the obstacles posed by the ongoing conflict in Sudan.