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A South Sudanese delegation led by Hon. Awow Daniel Chuang, Undersecretary in the Ministry of Petroleum, and Hon. Ujang James Karlo, Undersecretary in the Ministry of Finance, traveled to Khartoum in Sudan to discuss the renewal of petroleum agreements signed in 2012 between the two countries last week. The high-level visit aims to reopen dialogue around joint cooperation on petroleum with respect to technical and financial agreements.
In 2012, an agreement was signed between both countries whereby South Sudan’s oil resources would be processed at Sudan’s facilities. With the agreement having expired in March 2022, the visit centered around the need for the renewal of joint agreements in the field of petroleum, recognizing the role the sector has and continues to play in kickstarting regional socioeconomic growth.
During the meetings, parties discussed the renewal of existing petroleum agreements; challenges experienced preventing agreement maximization – specifically regarding political and technical factors; scaling up production and expanding the regional oil industry; and how to implement petroleum agreements going forward.
Meanwhile, the discussions went one step further, with parties introducing the possibility of new agreements that center around transportation and processing. According to the delegation, parties have already started discussing the features of these new agreements, with a number of technical and financial meetings commencing.
With both Sudan and South Sudan’s oil sectors heavily reliant on each other, renewing the agreements will be critical for scaling up production and meeting local demand.
For its part, South Sudan views Sudan’s facilities as instrumental, enabling the full development of the country’s 3.5 billion barrels of reserves. Correspondingly, Sudan’s facilities rely predominantly on South Sudan’s resources, creating a mutually beneficial relationship that both countries are committed to maximizing.
