By Ephraim Modi Duku Sokiri
South Sudan oil-dependent economy is bracing for tougher times ahead as oil price is tumbling in Sudan due to the political crisis although it continues to flow smoothly.
Addressing journalists shortly after Friday’s Council of Ministers meeting No.8/2023 yesterday Information Minister and government spokesperson, Michael Makuei Lueth highlighted the impact of Sudan war on the Country’s oil sector.
“Because of the war in Sudan, oil prices have dropped in Sudan, the people that evacuate oil from Sudan are afraid to send in their ships to Sudan” he said.
“The oil is continuing to flow, it is not affected and the oil is continuing to flow despite all these, there are precautions taken so that in case of interruptions in the flow of the oil …we will be in position to see the other alternatives,” he continued.
Minister Makuei revealed that the price of the oil which used to be at USD70-100 per barrel is now negotiated at 70 and below.
“So, they said they will buy at this price, so if you say no it is higher than that then they will say I am sorry, I will not evacuate it. Not even ready to risk to send my ship to war zone where it will be destroyed” he echoed.
Makuei said they are still negotiating with some of the companies which were given the contracts for the evacuation and up to now some of them are operating but some of them have declined.
On the other hand, Makuei said vice President Taban Deng Gai disclosed that some of the sub-contractors in Sudan for the oil business are vacating the country due to lack of facilitation and fear of their lives.
“The Vice President for Service Cluster Taban Deng Gai said the sub-contractors are running away from the oil firms because some of them are running out of fuel for the operation of their cars and others are going away, so there is a problem being faced in the oil sector” he said.
He further revealed that the government is still searching for alternatives like the Bentiu oil refinery for safe evacuation of the oil which is lacking storage system to be installed in place.
“The vice president recommended that Bentiu refinery which is supposed to be operational, stuck due to lack of storage facilities, has no evacuation routes and the ministries of roads and bridges is directed to work hard to open routes and finish the refinery for use” said Makuei.