Thursday, 5 September 2013

Sudan reopens pipeline as agreements reached with South

Sudan will continue to allow South Sudan to export oil through its northern pipelines and Port Sudan, Sudanese President Omar al Bashir said September 3, Reuters reported...South Sudanese oil production has only recently come back online as a result of security and oil agreements between Juba and Khartoum in September and March of 2012...The two Sudans remain at odds following ongoing rebel violence and internal pressures on the regime in Khartoum...Both governments are sponsoring different rebel groups, and even mediation from the African Union is failing to bridge the mistrust between the two nations...However, bringing the pipelines back online reflects the deep connection between the two nations...Land-locked South Sudan controls the majority of the hydrocarbons, while Sudan controls the piping to the Red Sea...Stopping the pipeline severely impacts both countries...Each government will try to leverage the best deal from this relationship, but ultimately cooperation is necessary because oil is the base of both economies.

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