South Sudan’s government instructed the Dar Petroleum Operating Co. to restart oil production following Sudan’s reopening of the export route for crude days earlier.
Crude exports from South Sudan had been halved since February last year due to a pipeline rupture caused by a shortage of diesel needed to dilute the oil. With crude contributing over 90% of the country’s revenue, the situation was worsened by Sudan’s ongoing conflict. However, security measures arranged by both governments and efforts by Bashayer Pipeline Co. earlier this week enabled the lifting of the force majeure imposed in March.
The Ministry of Petroleum in South Sudan, along with its partners, issued a directive for DPOC to begin oil production as early as January 8, according to a letter obtained by Bloomberg. Speaking to reporters in Juba on Tuesday, South Sudan’s oil minister, Puot Kang Chol, expressed enthusiasm, saying, “Our D-Day that we have been waiting for is tomorrow.”
DPOC, which operates in Blocks 3 and 7, includes partners like the China National Petroleum Company and Sinopec, according to South Sudan’s state-owned oil company. The government aims to increase crude production from these blocks to as much as 90,000 barrels per day within the first six months, according to the oil minister.
The civil war in Sudan, which began in April 2023, along with insecurity and flooding, had delayed pipeline repairs. Sudan’s oil ministry announced in October that the pipeline was finally repaired.
Oil Minister Puot Kang Chol praised those who worked to restore the pipeline, acknowledging their commitment to the nation’s economy. “They have been traveling to areas affected by war, but for the sake of this country, they went there,” he said.
