South Sudan’s oil exports are facing renewed risks after its northern neighbour ordered the shutdown of the pipeline in the Heglig area after rebel attacks.

The decision by Sudan’s Ministry of Energy and Petroleum came after the Rapid Support Forces (RSF) launched a strike targeting the pipeline.

The Heglig complex serves as a vital transit centre for oil pumped from South Sudan, which exports petroleum via Port Sudan in the Red Sea using the Sudanese pipeline. This means South Sudan’s fragile economy—reliant on oil for around 98 percent of its budget—will be seriously affected by the closure.

The Heglig area produces 20,000 barrels of per day from 75 wells, and hosts the central processing facility for South Sudan’s oil. The shutdown, communicated to Juba, is expected to impact oil production and flows from the country’s largest oilfields in Unity State.

In a letter to oil companies operating in the region, Fadul Mahmoud, Undersecretary in the Ministry of Petroleum, stated that the ministry could no longer guarantee the safety of personnel on site. He directed two major operators—2B Operating Company (2B Opco) and Petrolines for Crude Oil Co Ltd (Petco)—to initiate emergency shutdown procedures and evacuate workers.

Mahmoud also announced that, following a previous RSF drone incident on August 26, which left five people dead and seven injured, Petco would be unable to meet crude lifting schedules due to reduced staffing.

The ministry reported that the RSF attack on August 30 targeted the Heglig Operations Basecamp, damaging the airport terminal and prompting the evacuation of personnel.

Opco stated it is preparing for a possible shutdown should the attacks continue in order to safeguard its employees.

South Sudan’s oil exports had only resumed in January after being halted for nearly a year due to pipeline damage caused by fighting in Sudan that began in April 2023.

Both Petco and 2B Opco have also warned their South Sudanese partners—Sudd Petroleum Operating Company and Greater Pioneer Operating Company—that escalating security threats could lead to a shutdown.

Letters signed by General Manager Mohamed Siddiq Elhusein warned that continued violence could result in a complete halt to oil operations.

This is the second shutdown since the war began in Sudan. In March 2024, Khartoum imposed force majeure (inability to fulfil contracts) on its oil shipments due to conflict-related damage.

Currently, South Sudan exports around 110,000 barrels per day—down from 350,000 barrels per day prior to the outbreak of civil war in 2013—and a prolonged export ban could worsen the nation’s economic challenges and political instability.

© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).