South Sudan closes supplies as Oryx opens in W Africa


South Sudanese oil output is under threat because of political tensions with its northern neighbour, but West African lubes supplies have received a boost.

South Sudan, which gained independence from the North in the summer of 2011, began shutting down oil production at the end of January 2012 amidst allegations of theft of oil by Sudan from the pipeline that runs through the country on its way to the Red Sea.

While South Sudan accuses its neighbour of theft, claiming that transportation fees of $32/barrel are being demanded and that crude is being diverted, Sudan states that it is taking the oil to cover bills left unpaid by the South.

The result is that South Sudan has carried out its threat, originally made before independence, to suspend oil production, of which it holds the lions share of Sudanese estimated overall oil output of 490,000b/d until the dispute is resolved.  The majority of the oil is exported to China through CNPC, as well Malaysia through Petronas and India via ONGC.

Meanwhile on the other side of the African continent, Oryx Oil and Gas announced the opening of its second lubes blending part, with an 18.000 tonne operations in the Togan port of Lome.  Oryx, part of Swiss-based Addax & Oryx Group runs oil and fuel marketing operations across some 15 countries.  Currently the majority of Oryx's sales are in East Africa, according to Lube Report, but the company is keen to tap the West African markets.