Government to restart oil production today

The government said on Tuesday it would resume pumping oil output of 90,000 barrels per day at Blocks 3 and 7 today (Wedesnday) ,days after Sudan reopened the route for export, a move that would significantly improve the economy.

Puot Kang Chol, Minister of Petroleum (Front-Center) announces oil resumption in Blocks 3 and 7 on Tuesday in Juba.

By Awan Achiek

The government said on Tuesday it would resume pumping oil output of 90,000 barrels per day at Blocks 3 and 7 today (Wedesnday) ,days after Sudan reopened the route for export, a move that would significantly improve the economy.

“With the force majeure having been officially lifted by the government of Sudan through it’s letter dated 4 January 2025, and based on that the ministry of petroleum and partners would like to declare that the kickoff date for DPOC resumption is as early as tomorrow. This is basically to say our D-day that we have been waiting for is tomorrow the 8 of January 2025. As such Ministry of Petroleum and partners are hereby directing DPOC in coordination with BAPCO to immediately embark on the resumption without any delay,” said Chol at a press conference in Juba.

Oil exports were halted on 6th February 2024, after damage was detected along the pipeline following the fighting between Sudan’s army and the paramilitary Rapid Support Forces (RSF) in April 2023.

Force majeure was declared on March 16, after operators of the Jabalayn-Port Sudan pipeline discovered gelling between Pump Stations 4 and 5, located in a military operation zone.

Chol said the oil resumption follows new security arrangements with Bashayer Pipeline Company (BAPCO), the Sudanese company that runs the 1500-kilometer Petrodar pipeline.

He added that oil resumption will have a significant positive impact on the economy.

“This may improve our economy in one way or another once it is realized. We know that our economy is suffering,” said. Chol

“We also recognize that more than 70 percent of our oil production comes from DPOC, but we believe with tomorrow’s resumption that resources will be back to the table,” he added.

He said they would be producing 90,000 barrels of crude oil per day in the first six months.

On the exit Malaysian firm-PETRONAS, Chol said the government has an arrangement with PETRONAS to pay off its shares until it finds a new partner to replace them.

Without oil revenues, South Sudan’s government coffers have been running dry, causing severe financial difficulties for the population at large.

Dar Petroleum Operating Company is a consortium made up of China National Petroleum Corporation (CNPC), PETRONAS of Malaysia, SINOPEC and Tri-Ocean Energy.

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