Sri Lankan Ambassador Warns Against South Sudan Crude Oil Deal
Sri Lanka’s former Ambassador to South Sudan has issued a strong warning against the country’s interest in importing crude oil from South Sudan, citing insurmountable challenges including sanctions, supply chain instability, and refinery incompatibility.
Ambassador Kana Kananathan urged Sri Lankan energy authorities to reconsider the move, stating that “importing South Sudanese crude at this stage is neither practical nor economically viable.” Since 2018, the United States has imposed sanctions on at least 15 South Sudanese oil-related entities, including state-owned Nilepet, aimed at preventing oil revenues from fueling ongoing internal conflict.
The ambassador highlighted that any country seeking to trade South Sudanese crude must obtain a U.S. export license, making transactions in U.S. dollars complicated and subject to stringent compliance requirements. These legal risks have deterred major global oil traders from engaging with South Sudan unless significant discounts are provided.
Additionally, South Sudan’s landlocked position means all crude exports rely on a single pipeline through Sudan to Port Sudan, with recurring disruptions, civil unrest, and the ongoing Red Sea conflict creating highly unstable supply routes.
The technical challenges are equally daunting. South Sudan’s crude blends, particularly the heavy, acidic Dar Blend with a high Total Acid Number of 2.1-2.4, pose serious corrosion risks to Sri Lanka’s Sapugaskanda Refinery, which is calibrated for light to medium sweet crudes.
Instead, Ambassador Kananathan recommended pursuing imports from stable, non-sanctioned suppliers like Nigeria’s Bonny Light or Arab Light blends, which offer both technical compatibility and commercial safety.
Source: dailymirror.lk
