Sudanese Conflict Negatively Affects Oil Industry

A South Sudanese oil ministry official stated today, Thursday, that the conflict is disrupting supplies to the oil industry in his country, adding that production is expected to slow down unless peace efforts succeed in Khartoum. The technical advisor at the South Sudanese Ministry of Oil, Owo Daniel Chuang, noted that "production is currently stable at 170,000 barrels per day, but the fighting in Khartoum and other areas of Sudan is reducing supplies of chemicals, fuel, and equipment." Chuang added at an oil conference in Juba, "There is even a risk of a slowdown in production... if the situation does not calm down." South Sudan relies entirely on Sudanese refineries and pipelines to export its crude oil to the global market and depends on oil revenues to finance 85 percent of its annual budget needs.