Nowhere To Go
17th May 2024:Domestic turmoil and regional tensions restrict oil exports
Sudan and South Sudan are two countries in Northeast Africa. They were one country until 2011, when South Sudan seceded and became independent following a referendum. The political situation in the region is very unstable. Since April 2023, Sudan is engulfed in a civil war between the military government and the opposition Rapid Support Forces (RSF) a paramilitary unit. The situation in South Sudan is also fragile. Two years after South Sudan’s independence, a civil war broke out, which ended in 2018. Tensions remain between the government of South Sudan and rebel opposition groups although a recent peace initiative gives hope that the situation could improve.
Both Sudan and South Sudan are oil producers. The main producing fields are on both sides of the border. Because of the oil, the two countries are in a mutually dependent economic relationship. South Sudan possesses 75% of the oil reserves, but Sudan controls the pipelines and the export terminal to transport the oil to the international market.
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