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South Sudanese delegation in Khartoum to discuss oil issues

July 10, 2019 (KHARTOUM) – A South Sudanese delegation, headed by the Finance minister, Salvatore Garang Mabiordit and Petroleum minister, Awow Danil Chuang are in Khartoum to discuss some technical and financial issues concerning re-operation of the oil fields in South Sudan.

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A worker at the power plant of an oil processing facility in South Sudan’s Unity state on 22 April 2012 (Photo: Reuters)

The delegation was received at Khartoum Airport by the caretaker undersecretary of the Ministry of Oil and Gas, Ali Abdal-Rahman and the ministry’s technical advisor, Mohamed Ahmed Al-Sanjak.

The delegation are expected to discuss some technical and financial details related to the resumption of oil production from some additional fields in South Sudan as the two countries have worked together to resume crude production since July 2018 after disruption by a five-year old conflict which damaged oil wells .

Crude oil from South Sudan has been exported from these fields and the work is still underway to restore operation of the last fields with the continuation of cooperation in the technical support and materials related to the fields operation as well as processing, transport and export services through Sudanese ports.

The two sides are engaging in technical discussions to agree on the scheduling of technical and financial issues and continuing in pushing forward cooperation in the mutual interests between the two countries.

According to official figures, South Sudan’s total oil production is nearly 180,000 barrels per day (bpd), but the government says it is keen to reach pre-war levels of 350,000 to 400,000 bpd by mid-2020.

In July 2017, Nigeria’s Oranto Petroleum Limited said it signed oil sharing agreement with South Sudan covering the country’s Block B3, earmarking up to $500 million to explore the oil in the region. In the first three years, Oranto said it would do airborne geophysical surveys in the 25,150-sq km block and assess existing data held by the government and former operators, among other activities.

The 120,000-square kilometre Block B was reportedly split by the government into the B1, B2 and B3 blocks in 2012. In Block B3, Oranto will work alongside the B1 and B2 partners, which include Total.

South Sudan is an established, world-class petroleum-producing region, whose territory includes a large part of the Cretaceous rift basin system that has proved petroliferous in Chad, Niger and Sudan.