Could South Sudan’s oil sector be the world’s newest nation?
Ten years after becoming the world’s newest nation, South Sudan is struggling with how to advance, fund and staff a potentially lucrative oil sector that could provide a much-needed economic foothold in the impoverished country.
How much oil does Sudan export?
Sudan exported $317 million in crude oil exports in 2020. In 2021, its oil fields produced 59,000 barrels per day (bpd). The Sudan Oil Refinery has the capacity to refine 90-95,000 bpd. The Sudanese government also receives an in-kind royalty payment of 14,000 bpd from the government of South Sudan for oil pipeline transit rights to Port Sudan.
What happened to South Sudan’s oil industry?
Oil fields were destroyed during the civil war and industry figures show the sector went from producing 350,000 barrels per day to 150,000 barrels. South Sudan has largely employed Chinese and Malaysian engineers to produce and export the country¡¯s crude to Sudan, where it is processed and sent on to the international market.
How can Sudan improve its oil sector?
Sudan¡¯s oil sector suffers from years of underinvestment. The sector¡¯s productive capacity could be boosted with the introduction of improved technology, staff capacity building, and modernization of existing physical plants.