South Sudan's oil industry restarts as political peace breaks out.
After a near-total shut down of the oil industry by South Sudan - which had charged neighbouring Sudan with stealing its oil - a solution has been brokered between the two countries. A team of international mediators, led by former South African President Thabo Mbeki, has facilitated the agreement which was signed by the two countries and could see South Sudan’s oil reaching the international market by the end of April 2013.
As previously reported by OATS, the Presidents of Sudan and South Sudan agreed on multiple economic and security agreements, including demilitarizing the border and resuming South Sudan’s oil exports. The demilitarization finally began in mid-March and South Sudan began gearing up to restore oil production, with transportation via the pipeline that runs through Sudan.
Meanwhile South Sudan also signed an agreement with Ethiopia and Djibouti which could allow it to export oil by truck from July. South Sudan will carry out a technical assessment to establish the feasability of building two pipelines, one via Ethiopia and another across Kenya to the port of Lamu. These could provide an alternative to the Sudan pipe.