Sudan and South Sudan have come up with a draft deal to develop oil cooperation, including resuming production from key oil fields, according to S&P Global.

Under the agreement, production at the Unity and Toma South fields will be prioritized, with 15,000 barrels of oil per day (bbl/d) from Block 5A expected to come online very soon. Sudan will also help in providing technical support for Blocks 3 and 7 in its southern neighbor. 

Due to the geographical nature of the region, land-locked South Sudan relies on Sudan to export its crude in a pipeline via Khartoum to the Red Sea.

Sudan consumes large quantities of crude oil which is processed at the 120,000 bbl/d Khartoum refinery.

So far this year South Sudan’s crude production has averaged 150,000 bbl/d. However, the two countries’ economies have been crippled by the low oil price environment.

South Sudan, a member of OPEC+, committed to cut output to 100,000 bbl/d for May, June, and July, while for August onward, it agreed to produce 106,000 b/d from its reference level of 130,000 bbl/d.