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The Sudans Reach Deal to Secure Shared Oil Infrastructure

The Sudans Reach Deal to Secure Shared Oil Infrastructure
Thursday, 09 October 2025 14:07
  • Sudan, South Sudan agree to secure vital oil infrastructure

  • Joint mechanism to protect pipelines; RSF role not addressed

  • Conflict-hit oil flows vital to both economies, says IMF

Sudan and South Sudan have reached a bilateral agreement to protect their key oil infrastructure, including pipelines, pumping stations, and border zones used to transport South Sudanese crude to the Red Sea, according to media reports published on Wednesday, October 8, 2025.

The announcement, made in Port Sudan, comes amid Sudan’s ongoing civil war, which has already triggered several attacks on oil facilities vital to South Sudan’s production, particularly in the Upper Nile and Unity states.

The deal establishes a joint security mechanism responsible for intelligence sharing and coordinating cross-border patrols to protect the infrastructure. The two countries also plan to create a Joint Economic Committee to strengthen cooperation in strategic sectors such as energy and infrastructure.

However, the announcement made no mention of the Rapid Support Forces (RSF)—a key actor in Sudan’s conflict that controls several territories crossed by the pipelines. This omission raises doubts about Khartoum’s ability to fully implement the agreement.

For Juba, oil remains the cornerstone of the national economy, accounting for nearly 90% of government revenue and 95% of total exports, according to the International Monetary Fund (IMF). Since February 2024, the conflict in Sudan has severely disrupted these revenues, damaging the pipeline that handles around 70% of South Sudan’s exports.

For Khartoum, these oil flows are also a vital source of revenue for an economy battered by war and inflation. The September 2012 Oil Cooperation Agreement, signed after South Sudan’s secession, sets the transit fees Juba pays Khartoum for each exported barrel.

Under the current arrangement, Juba pays $1.60 for processing, $8.40 for transit handled by the state-owned Petroleum Company (Petco), and $6.50 for transit managed by Petrodar, the consortium that operates the pipeline from South Sudan’s oil fields to the Port Sudan terminal. An additional $1 sovereign fee and $15 under transitional financial arrangements are also applied. According to the Small Arms Survey, a Geneva-based research program specializing in security and conflict economics, part of these payments are made in kind, with Sudan receiving up to 27,000 bpd as compensation.

While the agreement reflects a more pragmatic approach between the two Sudans, its effectiveness remains uncertain. Without the participation of the RSF and a lasting resolution to the civil war, the security of critical oil infrastructure is likely to remain fragile.

Abdel-Latif Boureima

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