South Sudan admits conflict has hampered oil production

May 25, 2014 (JUBA) – South Sudan’s government admitted on Sunday that ongoing conflict has affected the country’s oil production, which now stands at just 165,000 barrels per day.

Petroleum minister, Stephen Dhieu Dau, told Sudan Tribune that the country continues receiving revenues from oil produced in Upper Nile state, where production rate is reportedly on the decline since no additional explorations takes place in the area.

“The oil production is continuing in Upper Nile. The current output is not bad, but there is a drop. At the moment the level of output stands at 165,000 barrel per day from 245,000 barrels per day before the current crisis erupted last year”, said Dau.

“This [oil] is produced in Paloch”, added the petroleum minister.

He commended government troops for providing protection and defense to the only remaining oil wells in the country, despite several attempts by rebels to control it.

“There is no problem around production area at the moment. There is enough production by the SPLA [Sudan People’s Liberation Army] forces to the oil workers. They are secured”, said minister Dau.

“The army in the area are doing [a] commendable job in defend of the country, its constitution and the resources of the people”, he stressed.

Prior to South Sudan’s July 2011 secession from Khartoum, oil production generated millions of dollars and accounted for at least 98 percent of the young nation’s budget.

Till now, however, South Sudan’s oil is exported through Sudanese pipelines and this generates revenues which are economically significant for the Khartoum government.

(ST).