South Sudan aims to resume oil production by December 30, 2024, after a pipeline disruption earlier this year due to fighting in Sudan. Although the Ministry of Petroleum has declared this start date, challenges remain unresolved among consortium partners before production can effectively restart. The country struggles with economic difficulties and humanitarian crises despite considerable oil reserves.
South Sudan has announced its intention to resume crude oil production following disruptions caused by fighting in Sudan, which damaged a critical pipeline earlier in the year. According to documents reviewed by AFP, the Minister of Petroleum declared December 30, 2024, as the official date for resuming operations in two specific oil blocks. The declaration, however, is coupled with the need for further discussions among consortium members regarding outstanding production-related issues before a final decision can be made. South Sudan, possessing substantial oil reserves, has faced significant economic challenges in the wake of ethnic conflicts and instability, which have compounded the difficulties stemming from the recent pipeline damage. Despite the pressing humanitarian crises, including a cholera outbreak linked to recent violence, the nation aims to restore its oil production capacity, which had previously reached over 150,000 barrels per day.
South Sudan, which gained independence from Sudan in 2011, inherited approximately 75% of the former nation’s oil reserves. Oil exports are crucial to its economy as the country is landlocked, relying on pipelines through Sudan for access to global markets. The recent conflict in Sudan has exacerbated existing challenges in South Sudan, which include chronic instability, poverty, and ongoing ethnic violence. Oil production had been significantly impacted by the pipeline rupture, which occurred during violent clashes between Sudan’s army and the paramilitary Rapid Support Forces.
In conclusion, South Sudan plans to recommence oil production to bolster its struggling economy, with a tentative restart date set for December 30, 2024. However, significant hurdles remain, necessitating further discussions within the consortium managing the oilfields. Despite the rich reserves, the nation’s challenges, compounded by recent violence and humanitarian issues, pose serious concerns for its recovery and stability.
Original Source: www.barrons.com
