Juba, Jan 8 (NationPress) South Sudan has announced that it will recommence the production and exportation of crude oil to the international market through Port Sudan starting Wednesday.
The Minister for Petroleum, Puot Kang Chol, stated on Tuesday that the government has been working closely with Sudan's Ministry of Petroleum and Energy, Dar Petroleum Operating Company (DPOC), a consortium of oil exploration and production firms, Bashayer Pipeline Company, and China National Petroleum Corporation, among other international collaborators, to ensure the restart of oil production, as reported by Xinhua news agency.
"The Ministry of Petroleum and our partners are instructing DPOC to commence the resumption of crude production and operations as early as January 8," the minister disclosed to reporters in Juba, the capital of South Sudan.
He highlighted that production of the Dar Blend would initiate in Blocks 3 and 7, targeting 90,000 barrels per day during the first six months, with plans for an increase thereafter.
Chol mentioned that concerns raised by partners regarding technical readiness for the production restart, including issues like force majeure and security guarantees, have been resolved.
The flow of South Sudan's crude through the Sudanese pipeline was interrupted following damage to the infrastructure in early 2024 due to ongoing conflicts between the Sudan Armed Forces and the Rapid Support Forces, which began in mid-April 2023.
At present, South Sudan relies on Sudan's oil infrastructure to transport its crude via Port Sudan for export to international markets.
Last month, South Sudan revealed its plans to build a new oil refinery worth $3 billion at the Tharjiath field in Unity State, one of the nation's major oil-producing regions.
While there is an existing refinery in Tharjiath, its capacity is limited, and poor road connectivity complicates the transportation of refined products to the market, as explained by Michael Makuei Lueth, Minister of Information, Communication Technology and Postal Services.
The new refinery is designed to satisfy South Sudan's fuel consumption requirements and will be financed through a public-private partnership, Makuei informed reporters in Juba following a Council of Ministers meeting.
Nilepet, or Nile Petroleum Corporation, which is South Sudan's national oil and gas company, will possess a 30 percent stake in the new refinery, as stated by Makuei.
Quad Layer Holdings, holding a 70 percent stake, will oversee the construction of roads to connect the refinery to markets, ensuring effective fuel distribution, he added. The two contracted companies will finance the entire project, with the government reimbursing their investment after the refinery begins its production.
The official pointed out that following government approval of the project, feasibility studies will be conducted to determine the refinery's capacity before the contract is finalized.
Oil production constitutes approximately 95 percent of South Sudan's annual fiscal budget. Currently, Juba relies on Sudan's oil infrastructure to export crude through Port Sudan to international markets.
