South Sudan eyes restart of Dar Blend crude exports

South Sudan is aiming to restart exports of its heavy sweet Dar Blend crude through Sudan within weeks, the country's presidency said.

Around 100,000 b/d of Dar Blend has been shut in since February because of ruptures and blockages along the Petrodar pipeline which links oil fields in South Sudan to war-torn Sudan's Red Sea export terminal at Bashayer.

"Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production," South Sudan said following a visit by the head of Sudan's army, Abdel Fattah Al Burhan.

South Sudan said its engineers are expected to visit Sudan in the coming weeks to "familiarise themselves with the readiness of the facilities so as to jump-start production".

Previous attempts to repair and restart pipeline flows have been hampered by the civil war in Sudan, which pits the army against the paramilitary Rapid Support Forces. International efforts to forge a ceasefire have been unsuccessful, with the war now in its 18th month.

Production of South Sudan's medium sweet Nile Blend crude grade has not been impacted, as it is transported to Bashayer through the Greater Nile pipeline.

Nile Blend now accounts for all of South Sudan's production, which stood at 60,000 b/d in August compared with around 150,000 b/d before the closure of the Petrodar pipeline, according to Argus estimates.

The closure of the pipeline has put immense economic strain on South Sudan, which depends on oil sales for more than 90pc of government revenues.

Meanwhile, South Sudan has postponed long-delayed national elections scheduled for December by two years. The move is seen by many as a bid by the country's leadership to cling onto power.

By Aydin Calik