Oil Sharing Developments in Sudan

On March 4^th the Sudanese government announced it is increasing oil exploration in the north. Currently oil from South Sudan accounts for 75% of the North’s 500,000 barrels per day. The state oil minister announced that Sudan controls 70% of the oil pipeline connecting the two regions; however, a new deal on oil sharing is under negotiation, as the South is currently dependant on the north’s refining facilities. For its part South Sudan is exploring alternative export options, and is even considering building a new pipeline through Kenya and DRC to the Indian Ocean. By March 22^nd negotiations over oil between the north and south were still ongoing, but Southern Sudan may agree to pay the north up to 30% of its oil revenue, as well as transportation costs, in exchange for the use of the north’s refineries and pipeline.