©(AFP)
The rupture of a key oil pipeline that carries oil from South Sudan to Port Sudan may cause severe turmoil in the poverty stricken South Sudan, potentially delaying its first ever election.
Experts warned that oil-dependent South Sudan is at risk of economic and political turmoil over the shutdown of a key pipeline in its war-torn neighbour.
Analysts voiced deep concern at the loss of crucial oil revenue in one of the poorest countries on the planet, and the possibility that it may force South Sudan's first ever elections to be delayed once again.
In a letter dated March 16, Sudan's Energy Minister declared a "major rupture" on the pipeline that ships crude from South Sudan to the Red Sea city of Port Sudan for export.
It said that the rupture occurred in February in a "military operations area" in Sudan, where conflict has been raging since April last year.
Boutros Magaya, head of a South Sudanese parliamentary sub-committee on petroleum, warned of the "grave implications" of the shutdown on people's livelihoods and security and that the country faced an "imminent economic crisis."
Despite its oil riches, the world's youngest nation struggled to find its footing since independence from Sudan in 2011, battling ethnic violence, chronic instability, poverty and natural disasters.
About 9 million of its 12.4 million people are in need of humanitarian assistance, according to UN figures.
Petroleum exports accounted for about 90% of South Sudan's national income and Magaya warned that it could lose at least $100 million a month without the oil sales.
South Sudan's ruling elite are accused by the UN of massive plundering of public coffers and resources, with the country ranked 177th out of 180 on Transparency International's corruption index.
When South Sudan became independent, it took over about three-quarters of the oil reserves of the old Sudan, while Khartoum retained control of all pipeline and export facilities.
According to the bp Statistical Review of World Energy, South Sudan produced 153,000 barrels per day in 2021, while Sudan's output was 64,000 bpd.
Sudan has been at war since April 2023 when fighting erupted between the army and the paramilitary Rapid Support Forces (RSF).
The conflict killed thousands of people, forced millions to flee – including about 500,000 to South Sudan – and pushed the country to the brink of famine.
Boboya James Edimond, executive director of Juba-based think tank the Institute for Social Policy and Research, said that oil sales have been financing 95% of government operations.
"If the oil is not going to be flowing, there will be a collapse of the government which might force citizens to go for protest and the military is likely to join," he warned.
Andrew Smith, senior Africa analyst at risk intelligence company Verisk Maplecroft, said that the hit to government finances caused by the damaged pipeline meant it was "highly likely" that the election scheduled for December will be delayed.
With AFP
Experts warned that oil-dependent South Sudan is at risk of economic and political turmoil over the shutdown of a key pipeline in its war-torn neighbour.
Analysts voiced deep concern at the loss of crucial oil revenue in one of the poorest countries on the planet, and the possibility that it may force South Sudan's first ever elections to be delayed once again.
In a letter dated March 16, Sudan's Energy Minister declared a "major rupture" on the pipeline that ships crude from South Sudan to the Red Sea city of Port Sudan for export.
It said that the rupture occurred in February in a "military operations area" in Sudan, where conflict has been raging since April last year.
Boutros Magaya, head of a South Sudanese parliamentary sub-committee on petroleum, warned of the "grave implications" of the shutdown on people's livelihoods and security and that the country faced an "imminent economic crisis."
'Significant Losses'
Despite its oil riches, the world's youngest nation struggled to find its footing since independence from Sudan in 2011, battling ethnic violence, chronic instability, poverty and natural disasters.
About 9 million of its 12.4 million people are in need of humanitarian assistance, according to UN figures.
Petroleum exports accounted for about 90% of South Sudan's national income and Magaya warned that it could lose at least $100 million a month without the oil sales.
South Sudan's ruling elite are accused by the UN of massive plundering of public coffers and resources, with the country ranked 177th out of 180 on Transparency International's corruption index.
When South Sudan became independent, it took over about three-quarters of the oil reserves of the old Sudan, while Khartoum retained control of all pipeline and export facilities.
According to the bp Statistical Review of World Energy, South Sudan produced 153,000 barrels per day in 2021, while Sudan's output was 64,000 bpd.
Unpaid Salaries
Sudan has been at war since April 2023 when fighting erupted between the army and the paramilitary Rapid Support Forces (RSF).
The conflict killed thousands of people, forced millions to flee – including about 500,000 to South Sudan – and pushed the country to the brink of famine.
Boboya James Edimond, executive director of Juba-based think tank the Institute for Social Policy and Research, said that oil sales have been financing 95% of government operations.
"If the oil is not going to be flowing, there will be a collapse of the government which might force citizens to go for protest and the military is likely to join," he warned.
Andrew Smith, senior Africa analyst at risk intelligence company Verisk Maplecroft, said that the hit to government finances caused by the damaged pipeline meant it was "highly likely" that the election scheduled for December will be delayed.
With AFP
Read more
Comments