BMI View: After a long delay following the agreement of a formal deal in August 2012, South Sudan has finally restarted production. The lag time between the landmark deal and the actual resumption of activities underscores the enduring tensions between Juba and Khartoum. Political risks remain high, and oil flows from South Sudan remain uncertain. The long-term outlook for South Sudan is better than that of Sudan, with more prospective acreage and more interest from international companies; however, even here we see the risks heavily weighted to the downside. Maturing fields in both the north and south pose downside to …
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