Sudan's TSC Vice President and Energy Minister Discuss Oil Pipeline Repairs and Refinery Evacuations

On May 29, Malik Aggar, Vice-President of Sudan's Transitional Sovereignty Council (TSC), met with Acting Minister of Energy and Oil, Mohi-Eddin Naeem Mohamed Saeed, in Port Sudan. The meeting focused on critical issues affecting Sudan's energy sector, particularly the repair of the oil pipeline from South Sudan, the import of petroleum derivatives, and the evacuation of employees from the Khartoum refinery.

Why this matters: The repair of the oil pipeline and stabilization of Sudan's energy sector has significant implications for the country's economy and regional stability. Failure to address these issues could lead to further economic instability and potential conflict in the region.

The discussion on the oil pipeline was paramount, addressing the operational plan to repair the line that transports South Sudanese crude oil through Sudanese territory. The Petrodar pipeline, which pumps about 100,000 barrels per day of South Sudan's crude, had ruptured in February as a result of fighting. Although the rupture has been repaired, wax accumulation in the pipeline necessitates heating to prevent solidification.

The TSC Vice-President emphasized the importance of importing petroleum derivatives without adversely affecting the exchange rate of the Sudanese pound against the dollar in the parallel market. This measure aims to stabilize the local economy while ensuring the availability of vital energy supplies.

The situation at the Khartoum refinery was another key point of discussion. The refinery, a vital state facility, requires a plan for the safe evacuation of workers and employees. The Minister of Energy noted that a technical committee has started implementing an alternative plan to pump oil from the Umm Ali area to the port of Port Sudan.

The meeting also reviewed future plans for the development and rehabilitation of the electricity sector, which has been significantly impacted by the ongoing conflict. Ensuring a stable and efficient electricity supply is vital for the country's recovery and development.

The Petrodar pipeline, established by a consortium including China's CNPC, Sinopec, and Malaysia's Petronas, spans over 1,500 km from South Sudan to Sudan's Red Sea coast. It carries about two-thirds of South Sudan's total oil exports, which account for 90% of the country's foreign exchange earnings. The pipeline's repair is vital for both nations' economies.

To recap, the meeting between Malik Aggar and Mohi-Eddin Naeem Mohamed Saeed highlighted the urgent need to address key issues in Sudan's energy sector. Repairing the oil pipeline, ensuring the import of petroleum derivatives, and evacuating the Khartoum refinery are critical steps towards stabilizing the country's energy infrastructure and economy.

Key Takeaways

• Sudan's oil pipeline repair is crucial for economy and regional stability.
• Petrodar pipeline rupture affects 100,000 barrels/day of South Sudan's crude.
• Importing petroleum derivatives aims to stabilize Sudanese pound exchange rate.
• Khartoum refinery evacuation plan underway to ensure worker safety.
• Electricity sector development and rehabilitation plans are being reviewed.