Source: US Energy Information Administration
(Wed, 20 Mar 2024)
Sudan has had two civil wars since it gained independence in 1956. The second civil war ended in 2005 and eventually led to South Sudan becoming an independent nation-state. The secession of South Sudan significantly affected Sudan’s economy because Sudan lost 75% of its oil reserves to South Sudan. Disruptions in oil production, disputes over oil revenue sharing, and lower oil prices have negatively affected both economies. Instability in both countries has persisted in the post-referendum period because unresolved issues on domestic and interstate relations still linger.
In April 2023, armed conflict broke out in Khartoum, the Sudanese capital city, between the Sudanese Armed Forces (SAF), under the leadership of General Abdel Fattah al-Burhan (who is also the current leader of the military-led government), and the paramilitary Rapid Support Forces (RSF), under the leadership of Mohamed Hamdan Dagalo (also known as Hemedti). As of January 2024, fighting between the two factions is still ongoing and has spread to other parts of the country, increasing the risk of shut-ins or damage to oil infrastructure that have disrupted crude oil production.
