South Sudan warns of reduction in oil production if fighting continues
June 30, 2015 (JUBA) – The South Sudanese government warned it may experience reduction in oil production if no peace agreement is reached with armed opposition under the leadership of former vice president turned rebel leader, Riek Machar.
“Our resources remain constrained until peace is achieved. I recognise this plan is ambitious under the current circumstances, but I also believe that the priorities I have outlined are the utmost necessity in the achievement of a lasting peace settlement”, Athorbei said in a statement he delivered to members of parliament on Monday.
The minister said the government was expecting oil revenues to amount to three million one hundred and eighty six South Sudanese pounds although the production has been cut by at least a third since the country descended into war, resulting in many oil wells damaged and output and caused decline at functioning fields due to reduction and withdrawal oil workers from oil fields.
The country’s petroleum and mining minister, Stephen Dhieu Dau announced in May that oil production had dropped to 165,000 barrels per day from between 168,000 and 169,000 barrels per day in January.
Dau attributed the drastic fall in oil production to technical reasons as opposed to fighting in oil producing areas.
The budget, estimated at SSP 10.8 billion is smaller than the last year’s budget which stood at SSP 11 billion, which depended heavily on borrowing about $1 billion from oil companies to help cover repayments on domestic loans and previous oil advances.
(ST)