South Sudan’s oil reserves are estimated at 3.5 billion barrels, but production has stagnated in recent years despite efforts to boost production from aging wells. Malaysia’s Petronas, which owns major upstream assets in South Sudan, and London-listed Savannah Energy, which agreed to buy the projects in December, could not be reached for comment.
Will South Sudan’s conflict affect oil production and income?
Adhieu Majok, a South Sudanese analyst, said: "The sentiment around South Sudan is that if the conflict continues to escalate it will affect oil production and income." Sudan and South Sudan’s export crude grades are the Nile and Dar Blend, which are mostly sold to Asian refiners in China, India and Malaysia.
Are Sudan’s oil production and refining operations affected?
Although there were no immediate reports of operations being affected at Sudan’s oil production, refining or export infrastructure, since fighting broke out April 15 in the capital, near the South Sudan border and in Port Sudan, oil market watchers have remained vigilant.
How does South Sudan export crude?
However, South Sudan relies on Sudan to export its crude, which travels through a pipeline to the Red Sea via Khartoum, where explosions and gunfire were heard April 17.