South Sudan resumes oil production

South Sudan on map
Photo Credit: via google

South Sudan has resumed oil production after more than a year following disputes with its neighbour, Sudan.

The decision came after both sides agreed to restart cross-border oil flows last month.

South Sudan owns a greater percentage of the oil wealth available to the former Sudan. But transportation of the crude for sales oversees were done through the north, which is now Sudan.

After both sides separated in 2011, disputes over revenues and border conflicts, led to a shutdown of production as South Sudan, a landlocked nation, could not convey the products, except through a third party, to the nearby coast.

Before shutdown, South Sudan produced 350,000 barrels a day.

Production was halted over a disagreement about how much South Sudan should pay to export its oil through Sudanese pipelines.

South Sudan said the charges amounted to theft.

South Sudan said the decision to resume production should be taken as a sign of peace.

The two countries came close to all-out war over border disputes last year, and have since agreed to set up a buffer zone along the border.

The first oil is expected to reach Sudan’s ports by the end of May, according to Sudan’s state news agency, with output expected to reach 150,000 to 200,000 barrels a day.


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