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Oil exports from South Sudan stopped after a pipeline explosion

March 21, 2024

Oil exports from South Sudan stopped suddenly, after a major explosion in a pipeline located in the area of the civil war that broke out a year ago in Sudan. In light of this, Sudan declared a state of force majeure on oil exports. He no longer receives supplies from South Sudan after the explosion, which allows him to abandon his contractual obligations.

The accident occurred near the “military operations area,” 11 miles north of the pumping station, which meant that engineers were unable to reach the area to carry out repairs. In light of this, the energy platform sent a request for comment to the Sudanese Ministry of Energy and Oil, but there was no response.

South Sudan relies on a network of pipelines, refineries and ports with its northern neighbor to export the crude it produces to the global market. Sudan’s Minister of Energy and Oil, Muhyiddin Naeem, confirmed that the damage to the pipeline was first discovered on February 10, 2024, when the flow of crude oil faltered. In a message he addressed to companies working in transporting South Sudanese oil.

The blockage caused by crystallization in the pipeline due to the lack of diesel fuel in order to dilute the crude, and this resulted in a severe loss of pressure and oil leakage, and resolving these issues faces several challenges due to the conditions of the ongoing war in Sudan.

The oil infrastructure in Sudan has been exposed to continuous crises since the outbreak of the civil war during April 2023, and oil exports from South Sudan to the export terminal in Sudan amounted to only about 1.2 million barrels so far during the month of March, compared to February’s 2.2 million barrels and nearly 6 million During the month of January.

The Sudanese Minister of Energy and Oil, Mohieddin Naeem, explained that the pipeline explosion led to the suspension of crude oil exports through the port of Port Sudan. In light of this, Sudan declared a state of force majeure that prevents Sudan from fulfilling its obligations to deliver crude oil through the transportation system of the Bashayer Pipeline Company. BAPCO for Bashayer 2 Marine Terminal.

Khartoum notified Juba on February 10 that the operator of the Jabalain-Port Sudan pipeline noticed flow restrictions at pumping station No. 5, and a crystallization accident occurred between pumping stations 4 and 5, which are located in the area of military operations, which prevented the operating company from arriving due to the war. It was unable to supply Pumping Station No. 4 with the diesel needed to heat crude oil to prevent crystallization.

Bapco then removed the crystallization and the flow was resumed and stopped the next day after a sharp drop in pressure was discovered. An investigation was held into the matter and a large crack occurred 18 kilometers north of Pumping Station No. 3. This area is considered a military zone, and repairs were sent to the area, but they were unable From starting work only after obtaining a security clearance.

The Minister of Energy and Oil in Sudan stated that Sudan has lost about 7 million barrels of crude oil due to the ongoing civil war. The minister was spoken to about the sabotage of the crude warehouse in the Khartoum refinery, which led to the loss of 210 thousand barrels that were present, in addition to the destruction of gasoline and gas warehouses.

The refinery has not yet operated due to the war, and parts integral to its work have been damaged, such as the control center for the distribution of petroleum products, especially after they are refined and exit the refinery, and the storage warehouses for derivatives inside it, in addition to the storage centers that accommodate the crude entering them before the refining operations.

The level of production has become low due to the exit of a number of oil-producing fields from the production cycle. Due to the war and the entry of rebel forces into these fields and disrupting work in them, which led to the lowest level of daily production of less than 15 thousand barrels per day.

There is a strategic plan that Sudan has, starting from 2024 to 2028, to improve the sector in light of the economic vision set by Sudan after emerging from the war. There is sufficient opportunity for Sudan, as it possesses oil reserves amounting to about 6 billion barrels, and only about 20% of this quantity is extracted, and there are about 12 A sedimentary basin in different and diverse locations and large reserves of natural gas in central and eastern Sudan.