South Sudan is working with China’s state-owned CNPC to revamp its oil industry, which currently produces between 60,000 and 90,000 barrels per day.
This collaboration follows a series of attacks on oil facilities and export routes that led to a shutdown in May, shortly after operations briefly resumed amid the conflict in Sudan.
During a meeting held in Juba on June 16, the Ministry of Petroleum and CNPC agreed on a technical partnership aimed at restoring key oil blocks, specifically blocks 1, 2, 3, 4, and 7, which are central to South Sudan’s production.
“We’ve set up a joint technical team to address logistical and operational barriers and to increase output in priority areas,” said Deng Lual Wol, Undersecretary at the Ministry of Petroleum.
Efforts will concentrate on rebuilding infrastructure in the resource-rich regions of Unity, Ruweng, and Upper Nile, which have suffered from local conflicts and insufficient investment.
Production at blocks 3 and 7 in the Melut Basin, operated by CNPC, was halted for almost ten months due to instability in Sudan that disrupted the export pipeline. These blocks, which previously produced over 200,000 barrels per day, are now targeting a recovery to 90,000 barrels per day by 2025.
CNPC reiterated its commitment to the partnership, stating, “We’re ready to allocate the necessary resources and apply advanced technologies to help revive South Sudan’s oil sector,” in a statement released by the Petroleum Ministry.
The cooperation also includes resuming drilling activities, upgrading equipment, and training the local workforce.
However, observers note that success will depend on improved governance, a conducive business environment, and meaningful skills transfer.
Previous partnerships have delivered limited benefits to local communities, and environmental degradation, particularly around the Thar Jath area, remains a pressing issue. “Our vision is for our natural resources to contribute meaningfully to the national economy and improve the lives of our citizens,” Deng Lual Wol added.
source: www.ecofinagency.com
