(Bloomberg) -- Sudan lifted a force majeure notice issued in March on crude exports from South Sudan, signaling resumption of oil shipments through a pipeline that had been damaged in a war zone.
Sudan declared the stoppage after the pipeline ruptured in February due to lack of diesel to thin out crude, choking a key export that accounts for more than 90% of landlocked South Sudan’s revenue.
The two governments have made security arrangements and operator Bashayer Pipeline Co. has also “taken measures to ensure the flow of materials and equipment to all facilities along the route,” according to a Jan. 4 letter from Sudan’s Ministry of Energy and Petroleum to South Sudan’s Ministry of Petroleum.
The force majeure has been lifted, according to the correspondence seen by Bloomberg and confirmed by South Sudan.
Operators in the East African nation include China National Petroleum Corp. and Oil & Natural Gas Corp. of India. In the month before the rupture, about 6 million barrels of crude were loaded at the Red Sea export terminal in Sudan, but that plunged by about two thirds in February.
South Sudan seceded from Sudan in 2011 and relies on a network of pipelines, refineries and ports to ship its product to the global market. In October, Sudan said it was ready to resume shipments.
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