2013

The new oil nations in Eastern Africa cannot agree on a joint plan to contstruct an oil pipeline. By failing to co-operate, they are likely to waste part of their wealth on duplicate infrastructure, building too many refineries and pipelines.

Sudan’s foreign ministry regretted statements issued by South Sudanese officials claiming that oil flow was deliberately blocked for political reasons, while in Juba president Salva Kiir reaffirmed that an alternative pipeline through Kenya remains his top priority.

The Sudanese oil minister Awad Al-Jaz on Tuesday denied reports that his government hampered the exportation of South Sudan crude through the Heglig pipeline, stressing it functions normally.

South Sudan on Monday summoned the Chinese ambassador to Juba to complain over an alleged blockage of the flow of its oil to international markets through Sudanese territory, government sources have said.

The Swedish Financial Supervisory Authority Finansinpsektionen should investigate whether
Swedish stock market rules were contravened by Lundin Oil/Petroleum AB’s omissions and
communications to shareholders and the market regarding the situation in their Block 5A
licence in Sudan during 1997-2003.

South Sudan should reach a production capacity of 160,000 to 180,000 bpd by mid-June according to Dar Petroleum president Joseph Podtung. “Within a month, we should be reaching 165,000 to 180,000 and we would expect to reach the level where we were before the shutdown by early next year,” Podtung said during a ceremony to restart production at Palouge.

BICC brief 48 “Oil Investment and Conflict in Upper Nile State, South Sudan”aims to contribute to the study of the relationship between government, oil corporations, and local communities in South Sudan.

Sudan and South Sudan reached a deal in the early hours of March 12, after a week of negotiations in Ethiopia's capital Addis Ababa, which should spark the beginning of exports of South Sudanese oil from
Sudan's Port Sudan, on the Red Sea coast, for the first time in more than 15 months. Companies are already gearing up for production from the oil-rich states of Unity and Upper Nile in the north of South Sudan, and the first shipments of oil are due to be made by the end of May.

South Sudan has confirmed that its first oil shipment, destined for international markets, reached the Sudanese territory on Saturday, raising hopes for reviving the country’s turbulent economy.

As oil production resumes in South Sudan, the campaign group, Global Witness, urges government to implement transparency measures in the sector, as part of the oil legislation passed last year.