South Sudan oil will resume flowing to Port Sudan today

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April 6, 2013 (JUBA) - The first barrels of crude oil from the
oilfields in the oil-rich Unity state of South Sudan will begin to
flow today through the pipelines to Port Sudan, announces the
government on Friday.


A worker walks at the power plant of an oil processing facility at an
oilfield in Unity State April 22, 2012 (Reuters)
Government’s spokesman, Barnaba Marial, told the press after the
cabinet meeting on Friday, chaired by the vice-president Riek Machar,
that Tharjiath oilfield in Koch county of Unity state, will begin the
resumption of the oil production on Saturday and pump it through the
over 1,400kms long pipeline passing through the neighbouring Sudan.

The minister of Petroleum and Mining, Stephen Dhieu Dau, and other
accompanying senior officials will travel to Tharjiath oilfields on
Saturday to witness the pumping of the first barrels of the oil
through the pipeline.

The resumption of the oil production will be the first event in the
implementation of the economic deal of the cooperation agreement
signed in Addis Ababa between the two regions of the former Sudan who
split in July 2011.

Another oilfield, known as Unity Oilfield in Unity state in the area
of Heglig/Panthou in Pariang County is also expected to resume the
production in few days.

South Sudan shut down its oil production in January last year,
accusing Sudan of stealing or confiscating the oil due to a
disagreement over how much transit fees the new oil-producing nation
should pay to its neighbour.

The situation had affected the economies of both countries that
largely depended on oil revenues in order to run their machineries.

The two countries as a result of the oil shutdown had to cut back on
spending in their institutions by introducing austerity budgets.

In South Sudan the government cut off a number of allowances,
including the housing allowances that used to top up to the salaries
resulting into the loss of nearly 50% of the overall salary of a civil
servant in a country where accommodation poses a big challenge.

Despite the resumption of the flow today it may take weeks before the
empty pipeline fills up with the crude oil ready for loading at Port
Sudan.

Petroleum minister Dau on Friday also announced that South Sudan and
Sudan will organize a coordinated celebration in three weeks on the
resumption of the oil production.

(ST)

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