Petroleum Africa
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Monday, July 22, 2013
Oil output in South Sudan has been reduced and the government plans to shut all production in again following Khartoum’s insistence that production be shut down by August 7. South Sudan’s production flows through the Khartoum-owned pipeline north for export.
Khartoum is alleging that Juba is supporting rebels that operate across their border. Sudan said in June that it would close two cross-border oil pipelines within two months unless South Sudan gave up support for the rebels. Juba denies supporting the accusation.
If the pipelines are indeed shut in again, both Khartoum and Juba’s economy will take another hit, such as the one taken when the south shut in production for 16-months over a row with the north over pipeline fees. Flows of oil, the lifeline for both, only resumed in April. South Sudan has cut output to 160,000 bpd from 200,000 bpd, officials of its foreign affairs and oil ministries said, according to the Reuters report.
“The reduction started yesterday,” Juba’s Foreign Affairs ministry spokesman Mawien Makol Arik said. “It is going to go down gradually until it goes off,” he said.
“This is a decision made by Khartoum … still accusing us of supporting rebels, which is a position we denied. We said we don’t do that.” He said South Sudan had called on China, which dominates the oil industry in both countries, to mediate between the two countries, which fought one of Africa’s longest civil wars until 2005. South Sudan became an independent country in 2011.”
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