According to Poten, “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. Oil companies started searching for oil in the late 1950s, but it took until 1977 before Chevron found commercial quantities of oil.
By the early 1980s, the country produced 12,000 b/d. Other companies obtained concessions, but the exploration and production of oil were hampered by the almost total lack of infrastructure and by the civil war in the South. When rebels attacked the main Chevron base in February 1984, killing four employees, the company pulled out of Sudan.
Several months later, the French major Total also shut down its operations”. Source: Poten & Partners Poten added that “the situation changed dramatically in the early 2000s. Production quickly ramped up to 475,000 b/d in 2009.
However, since the independence of South Sudan production has suffered. By the early 2020s, combined production was down to 220,000 b/d, with 70% (160,000 b/d) coming from South Sudan. The key to Sudanese oil exports (both Sudan and South Sudan) is the Greater Nile Oil pipeline, which commenced operations in 1999.
This pipeline stretches 1,000 miles from the Unity and Helig oil fields in South Sudan to the Bashayer export terminal on the Red Sea, south of Port Sudan. The pipeline is capable of carrying 250,000 b/d, but t.
