South Sudan’s Minister for Information Michael Makuei Lueth declared that the resolution of critical issues with oil pipelines, including repairs in areas controlled by the Rapid Support Forces (RSF) and the Sudan Armed Forces (SAF), was essential for the survival of the government.
Makuei emphasized the pivotal role of oil revenue, stating that without these repairs, the country’s financial stability would be jeopardized. He underscored the government’s dependence on oil revenue, which currently comprises the primary source of income, far surpassing non-oil revenue.
“Without such interventions, it could have spelled the end of the South Sudan government since oil revenue is our primary income. Non-oil revenue is insufficient, barely covering a third of salaries, let alone other expenses,” Minister Makuei said at a press conference in Juba on Tuesday.
“The decline in oil production resulted from a combination of factors, initially the impact of war and later exacerbated by floods. During the floods, some wells were flooded and remain unrecovered, contributing to the ongoing low production,” he added.
He noted ongoing efforts to work with oil companies to recover affected wells, but success has been elusive. Despite these challenges, he said, the country persists in producing what it can.
Makuei elaborated on the direct impact of the Sudanese war, stating, “The conflict in Sudan directly affected us as our oil, transported through a pipeline to the Port Sudan Red Sea port, is crucial for international market access. The current situation, including the Red Sea blockade, is a global issue, and our government refrains from discussing specific blockages due to conflicts involving the Houthis and counter-offensives by the Americans and their allies.”
He explained, “Houthi actions in the Red Sea, compounded by the Israeli-Palestinian conflict involving Hamas, led to a blockade. The Houthis’ actions prompted intervention from the Americans and their allies, resulting in a blockade and conflict in the region.”
Makuei, who is also the government spokesperson, urged journalists to respect the decision not to delve into current global affairs as contributing factors to the economic challenges faced by South Sudan.
While acknowledging the ongoing decline in oil production, Makuei criticized journalists, stating, “We don’t want to bore you with discussions on the Red Sea or events in Palestine. I assumed you were well-informed about these matters. If not, why did you choose journalism?”
Emphasizing the crisis in Sudan, with parts under the Rapid Support Forces (RSF) and others under the Sudan Armed Forces (SAF), Makuei highlighted the need for caution in handling situations in areas where South Sudan’s oil pipelines are located. “Any mistake we make will impact us first,” he stressed.
Makuei elaborated, “In case of an oil pipeline issue in the SAF-controlled area, we must coordinate with RSF to access the region for repairs. Similarly, if the issue is in the RSF-controlled area, we need to engage with SAF. This approach aims to avoid hostilities from either side. It’s the politics of the day.”
He continued, “These are matters where we must exercise discretion. We don’t need to disclose our strategies openly, but this is the challenging reality we face. Striking a delicate balance is crucial for our sustained operations. Our freedom is contingent upon finding an alternative oil evacuation route.”
“As long as our oil solely relies on passing through Sudan, we remain vulnerable to conflicts in the region. The instability in Sudan directly impacts our peace. The key lies in establishing another evacuation route for our oil, and hence our strategic plans involving Ethiopia,” Makuei disclosed.
He explained that due to the ongoing crisis in Sudan, South Sudan is considering setting up refineries to export refined petroleum products globally. “We aim to establish oil refineries to export refined petroleum products. However, in the current situation, we must proceed with caution and strategic thinking to ensure our continued stability,” Makuei stated. -