Juba and Port Sudan Strengthen Oil Security and Economic Cooperation

(PORT SUDAN) – South Sudan and Sudan have agreed to protect vital oil facilities and pipeline stations that transport South Sudan’s crude oil to Port Sudan on the Red Sea, marking a renewed phase of bilateral economic cooperation between the two countries.

The agreement was reached during a three day official visit by South Sudan’s Minister of Foreign Affairs and International Cooperation, Ambassador Monday Semaya Kumba, to Port Sudan. During his visit, Minister Kumba held high Level talks with Sudanese leaders, including General Abdel Fattah al-Burhan, Chairman of Sudan’s Transitional Sovereign Council, and Prime Minister Dr Kamil Idris.

A joint statement released on Monday confirmed that both governments pledged to enhance technical capacity, safeguard oil infrastructure, and strengthen cooperation on counterterrorism, intelligence sharing, and border security. The two sides agreed that protecting oil facilities and pipeline stations is essential for uninterrupted crude exports, which remain South Sudan’s main source of national revenue.

Oil accounts for more than 90 percent of South Sudan’s income. The country currently exports crude through Sudan’s pipeline system to Port Sudan, paying transit fees to Khartoum. These fees, according to market sources, are estimated at about 15 to 25 US dollars per barrel, providing both countries with critical revenue streams amid economic challenges.

The meeting also resulted in an agreement to establish a Joint Economic Committee to promote cooperation in key sectors such as trade, energy, oil production, agriculture, infrastructure, transportation, and public-private partnerships.

As part of this new cooperation framework, both nations proposed the creation of a Free Trade Zone at Port Sudan, which will help ease the movement of goods, reduce transport costs, and boost cross border investment. The initiative is expected to improve trade logistics for South Sudanese importers who rely heavily on Port Sudan for supplies ranging from fuel and machinery to food products.

Key Economic Proposals Between South Sudan and Sudan

During the visit, Minister Kumba also met with Sudan’s Minister of Energy and Petroleum, Engineer Mutasim Ibrahim, to discuss energy cooperation and potential joint projects to stabilise oil output. The talks covered areas such as refinery capacity, pipeline maintenance, and improved management of transit systems that have faced disruptions due to conflict in parts of Sudan.

The Minister emphasised that stable relations between Juba and Khartoum are essential not only for oil exports but also for encouraging private investment and expanding regional trade. He also met South Sudanese traditional leaders and students living in Port Sudan, assuring them that the Government is committed to maintaining peace and ensuring the welfare of citizens abroad.

The visit, which concluded on Monday, has been described by the Ministry of Foreign Affairs as a “significant step” in consolidating political and economic relations between the two nations. Analysts say the cooperation could help restore investor confidence in South Sudan’s oil industry, which has been struggling with production declines and high operational costs due to insecurity and technical issues.

The improved understanding between the two governments also comes at a critical time, as South Sudan works to diversify its economy, attract new investors, and prepare for future membership in regional trade blocs.