Oil talks between Sudan and South Sudan end without deal amid pipeline disputes and post-war realignments

Efforts by Sudan and South Sudan to revise transit and processing fees for South Sudan’s crude oil exports concluded inconclusively,with no formal agreement reached following high-level meetings in Port-Sudan. Though talks were described as constructive by Sudanese officials,technical sources revealed significant differences remained over logistical adjustments,particularly at the Bashayer oil terminal.

South Sudan,which depends heavily on Sudan’s infrastructure to transport its crude to international markets,had only just resumed limited exports following a nearly yearlong pipeline suspension caused by war-related damage. Discussions reportedly covered updated fee structures,the status of the PETCO pipeline,and post-conflict operational concerns.

The talks come as Sudan continues to grapple with the devastating aftermath of a civil war between its military and the Rapid Support Forces,which has killed tens of thousands and displaced over 13 million people. While both parties explored a proposed fee division—covering transit,processing (based on crude quality),and export logistics—no binding framework emerged. South Sudan,struggling with the impact of last year’s export halt on its oil-reliant economy,expressed interest in resuming full operations but cited the need for security guarantees and infrastructure rehabilitation. Technical reviews showed that only 28,000 barrels per day (bpd) are currently being pumped,far below the pre-suspension rate of 90,000 bpd.

Governed by a 2012 agreement,South Sudan pays a composite of fees to Sudan,amounting to over $25 per barrel when including processing,transit,and sovereign charges. Having already paid $2.5 billion of a $3.028 billion transitional arrangement,Juba still owes approximately $500 million. The unresolved financial and logistical issues come amid political unrest in South Sudan,where the arrest of Oil Minister Puot Kang Chuol — a close ally of detained Vice President Riek Machar — has added to uncertainty. Both governments have agreed to continue discussions in Juba and Port Sudan to resolve the impasse and stabilize this vital economic corridor.