Current Date:

Wednesday, 12 December 2018

Editorial: Politics Pumps Life in the Economic Artery

In the news, Sudan and China are moving quickly towards inking new deals related to oil exploration

Negotiations are underway between Chinese corporations and the Sudanese Petroleum and Gas Ministry that will soon lead to signing important agreements.
China has long been Sudan’s top strategic partner in the oil and gas field particularly through China’s National Petroleum Corporation (CNPC) which runs several projects in west and south Sudan.
China recognizes the importance of Sudan because the first project by Chinese companies in foreign oilfields was in Sudan and the success of China encouraged many countries to deal with it in the oil sector.
The recent peace accords between South Sudan foes have revived prospects for the rehabilitation and of South Sudan’s oilfields and pumping its production through the pipelines running in Sudan’s territory.
Khartoum and Juba are now waiting to reap the political and economic rewards after the reconciliation of South Sudan rivals.
South Sudan peace agreement on security arrangements and power-share will lead to a bright political and economic integration between Khartoum and Juba.
It is only few days for South Sudan oil to resume pumping from Unity State a matter which means the practical implementation of the cooperation agreements matrix.
The resumption of oil pumping has its importance for both countries after Sudan dispatched its engineers to provide the technical and technological assistance to operate Unity oilfields which were badly affected by the security incidents following the clashes between Salva Kiir and Machar troops a matter which resulted to the decline of South Sudan oil production to only 150 thousand barrels instead of 250 thousand barrels in 2011.
Sudan will benefit from the transit fees a matter which will lead to pumping of hard currency to the Sudanese economic artery.
In the past the transit fees were reprinting a big percentage of the general budget after Sudan lost most of the oilfields due to South Sudan secession.
Let us hope that the moves of China and the resumption of South Sudan oil pumping will serve the interests of Khartoum and Juba.
The signature of the security arrangements and power-share agreements are for the benefit of both countries considering that the peace in Sudan means cooperation with Sudan on oil issue.
This will lead to exchanging of interests as South Sudan economy needs rehabilitation and recovery besides the trade relations on the other hand.