War in Sudan: out of service pipeline raises fears of drying up of oil revenues
The war in Sudan, which has now lasted eleven months, has significant economic consequences for the country, but also for the region. A strategic pipeline for oil exports has been stopped for more than a month. Damaged in early February, this pipeline located south of the capital Khartoum could not be repaired and is blocking part of exports.
Oil refinery in Port Sudan (archive photo 2006). © UNEP
By: RFI Follow
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The pipeline rupture occurred in early February. The cause: the shutdown of a pumping station due to lack of fuel.
The incident took place about 100 km south of the capital Khartoum, in an area controlled by the Rapid Support Forces. And the fighting between the paramilitaries and with the army has seriously hampered repairs.
It is one of two pipelines that transport crude oil from
South Sudan
through
Sudan
to the port city of Port Sudan where it is exported on behalf of Chinese and Malaysian companies.
The shortfall is significant. Juba produces around 150,000 barrels per day. It is the government's main source of revenue. Sudan collects a percentage on transit.
Experts in the region are concerned, particularly for the stability of South Sudan. Without oil money, Juba will quickly no longer be able to pay its security forces, which could cause unrest in the country.
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