South Sudan resumes oil production and export
South Sudan has resumed the production and export of oil in the country. This was announced on January 7 in a joint statement signed by the government and key oil firms.
The Ministry of Petroleum and oil companies said operations had started in Blocks 3 and 7, located in Upper Nile State.
This came after Sudan’s government and the Basher Pipeline Company (Bapco) lifted a force majeure, which is a legal term for a situation where something outside their control had stopped the work.
“The reference is made to the kick-off date of operation and production resumption in Dar Petroleum Company (DPOC) Block three and seven. And the letter from South Sudan’s Ministry of Petroleum (MoP) and Bapco pertaining [to] the lifting of Force Majeure that was declared in February 2024 and the indemnity letter issued {by} MoP and coordinated task force formed by the parties,” parts of the statement was quoted.
“In this regard, the Ministry of Petroleum and partners are hereby directing DPOC to kick start the resumption of crude oil production and operation as early as 8th of January 2025,” it added.
The lifting of the blockade allows oil to flow from South Sudan to Port Sudan on the Red Sea. Sudan’s government said the decision was made after security conditions improved.
South Sudan has faced tough times in recent years. Fighting and reduced oil exports because of the war in Sudan have hurt its economy.
Before the conflict, South Sudan was producing 150,000 barrels of oil a day. This oil was sent through Sudan as part of an agreement made when South Sudan became independent in 2011.
The war in Sudan has also forced thousands of people to flee to South Sudan. Since April 2023, more than 810,000 new refugees have arrived. Many of these are South Sudanese people who had been in Sudan, along with refugees from other countries.
Over half of these refugees are now living in the Maban region. Another 135,000 have settled in the Ruweng Administrative Area. Many are also moving to cities, which is creating both challenges and opportunities for local communities.
