Sudan declares force majeure on South Sudan oil export

Author: Obaj Okuj | Published: Wednesday, March 20, 2024

Map showing the route of South Sudan crude oil pipeline through Sudan. (Courtesy).

The Government of Sudan has said it is unable to facilitate the transportation of South Sudan crude oil through the Jabalayn-Port Sudan Pipeline, citing interruptions from the ongoing conflict.

Sudan’s Ministry of Energy and Petroleum declared a force majeure on South Sudan crude oil on March 16, 2024.

In a letter seen by Eye Radio, the Sudanese authorities said operators of the pipeline, BAPCO, reported a significant decrease in flow at Pump Station 5. in February this year.

It said an investigation revealed a gelling incident between Pump Stations 4 and 5, attributed to the unavailability of diesel necessary for heating crude oil.

The statement said the situation was compounded by communication disruptions caused by the war.

Although BAPCO reportedly managed to clear the gelling and restore flow temporarily, operations were halted again the next day due to a severe drop in pressure.

The Sudanese government says further investigation uncovered a major rupture 18 kilometers north of Pump Station 3, within a military operations zone.

It said teams deployed mud pumps from DPOC in South Sudan to address gelled crude oil columns between Pump Stations 4 and 5, aiming to facilitate oil flow.

However, challenges persist in restarting the transportation system fully, necessitating functional pumping and heating stations, adequate diesel supply, and resolution of gelling issues—all hindered by the war conditions in Sudan.

As a result, Government of Sudan invoked force majeure, suspending its obligations to deliver crude oil through the BAPCO Transportation System to the Bashayer 2 Marine Terminal.

“As such Government of Sudan is declaring a force majeure which disables us from meeting our obligations in delivering Crude Oil in and through the BAPCO Transportation System to the Bashayer 2 Marine Terminal,” the letter reads in part.

“We remain ceased to restore the BAPCO Transportation System to operational mode and you will be updated of any developments duly.”

Force majeure on its oil agreement it essentially means that Sudan is invoking a contractual clause that exempts it from fulfilling its obligations under the agreement due to unforeseen circumstances or events beyond its control.

Force majeure clauses typically cover events such as war, natural disasters, or political unrest.

In the context of current situation, declaring force majeure indicate that government of Sudan is facing challenges or disruptions in its ability to fulfill its obligations related to the transportation or delivery of crude oil.

These challenges are caused by various factors such as conflict, logistical issues, or infrastructure damage due the ongoing war in Sudan.

By declaring force majeure, Sudan seeks legal protection from any potential liability for failing to meet its contractual commitments under the oil agreement.

Speaking to Eye Radio, former justice of the court of appeal, Geri Raimondo briefly explained the term ‘force majeure’

“Force majeure this is a Latin and French language, something out of control, like war, which is not man-made, something not exciting.”

Meanwhile, an advocate Godfrey Victor said the government South Sudan should engage in diplomacy in address these issues.

“The government of South Sudan, should engage parties involved into what has caused the force majeure and to see that the thing does not happen is very important a diplomatic communication has to take its place,” Victor said.

“You know diplomacy is more is more effective than the legality and the ground you know we have seen in the main occasion whereby issues violations of international law have been happening, but people end up tackling it in terms of diplomacy.”

“So, it is very important that the government of South Sudan need also to respond to Sudan and also engage on a high diplomatic level so that this thing is put right.”

 

 

 

Support Eye Radio, the first independent radio broadcaster of news, information & entertainment in South Sudan.

Make a monthly or a one off contribution.

error: Alert: Content is protected !!