Arop Jonchol
Sudan’s coastal region has witnessed a significant development in the energy sector, as crude oil from South Sudan has finally arrived at the marine terminals of Port Sudan. This comes months after the government in Juba announced the resumption of production at the country’s largest oil fields.
Sources familiar with the matter told Hot in Juba that the first shipment of crude extracted from the “Falouj” oil fields reached Port Sudan last week, and oil storage operations have already begun in preparation for export to global markets.
In February, the government of South Sudan announced the restart of operations at the Falouj oil field, following months of suspension caused by the ongoing conflict in Sudan, which had directly disrupted supply lines and export routes. The delivery of crude to Port Sudan faced several technical challenges, including reported pipeline leaks, which delayed the shipments.
The Falouj oil fields, located in Upper Nile State, currently produce around 130,000 barrels per day, while the Unity oil fields in Unity State contribute an additional 20,000 barrels per day. This cements Falouj’s status as the primary source of oil production in South Sudan at present.
The resumption of oil production and export is seen as a crucial step in revitalizing South Sudan’s struggling economy, which continues to face severe pressure due to rampant inflation and declining revenues following the 2023 production halt caused by the conflict in Sudan.
It is worth noting that prior to the outbreak of civil war in 2013, South Sudan was producing approximately 245,000 barrels per day. At its peak, production reached 350,000 barrels per day, before plummeting to about 160,000 barrels per day by mid-2015 due to disputes with Khartoum over oil transit fees and the ongoing conflict.
