• Activity reported at Heglig oil field amid fragile Sudan-South Sudan deal

• Teams prepare possible restart, pending security and agreement implementation

• Oil disruptions strain finances of both interdependent economies

Activity has been reported at the Heglig oil field on the border between Sudan and South Sudan amid uncertainty over the implementation of a trilateral agreement announced on Dec. 10 between South Sudan, the Sudanese army and the paramilitary Rapid Support Forces.

On Dec. 28, Radio Tamazuj cited local officials and industry sources as saying technical teams had been deployed to prepare for a potential restart of operations.

No timeline has been set for restarting production, which remains conditional on the security situation and the effective implementation of the trilateral agreement.

The situation underscores the deep oil interdependence between the two countries. Sudan handles the export of South Sudanese crude, while Juba remains heavily reliant on oil revenues. The World Bank says oil still accounts for more than 90% of South Sudan’s export earnings. Khartoum, meanwhile, earns income from transporting the crude to the Red Sea.

Since the outbreak of war in Sudan in 2023, attacks on oil infrastructure have caused repeated disruptions, affecting both production volumes and the public finances of both states.

Beyond security concerns, attempts to restart oil operations come amid broader economic constraints. In November 2025, Agence Ecofin reported that South Sudan had sought a $2.5 billion oil-backed loan from China and India to shore up public finances weakened by years of borrowing since independence.

This move comes as several reports point to persistent opacity in the management of oil revenues, contributing to widening budget imbalances and increasing the risk of prolonged economic weakness.

Abdel-Latif Boureima