Sudan fears fighting in South could hit oil flow

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July 11, 2016 (KHARTOUM) - Chair of the energy committee at the Sudanese
parliament Hayat al-Mahi has expressed concern over the impact of the armed
conflict in South Sudan on Sudan especially with regard to oil pumping.
[image: JPEG - 29.8 kb]*A Sudanese engineer points to a damaged section on
an oil pipeline in Heglig on 23 April 2012 (Photo: Reuters)*

At least 200 people have been killed in the ongoing fighting that broke out
in Juba on Thursday between armed forces loyal to President Salva Kiir and
the country’s First Vice-President, Riek Machar.

In press statements on Monday, al-Mahi said the fighting in South Sudan
didn’t yet reach the oil production areas but warned that oil pumping would
stop if the armed clashes expanded to oil fields.

“Stopping oil pumping would damage the pipeline and [we] would need to make
technical remedies to restart the pipeline,” she said.

Presently, South Sudan is producing oil at 160,000 barrels per day, despite
a decline in its oil production due to the violent conflict that engulfed
the young nation, killing thousand and displacing nearly two million people.

The flow of South Sudan’s oil through Sudanese territory is crucial for
both countries.
In 2013, the then deputy Governor Central Bank of Sudan, Badr al-Din
Mahmoud said the country had lost about $ 5 billion dollar when South Sudan
moved to suspend oil production following a dispute over transit fees with
Sudan.

South Sudan’s economy is also reliant on oil production and exportation.
But the landlocked country relies on Sudan for exportation of its crude.

South Sudan seceded from Sudan on July 9th 2011 following a referendum on
whether the semi-autonomous region should remain a part of the country or
become independent. 99% of the southern voters chose independence.

(ST)

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