South Sudan to Boost Oil Output With Resumption at Damaged Field

SOUTH SUDAN (Capital Markets in Africa) – South Sudan will raise oil production by 30 percent when output resumes “soon” at a field damaged by conflict four years ago, Petroleum Minister Ezekiel Lul Gatkuoth said.

Greater Pioneer Operating Co. will initially pump about 40,000 barrels per day, raising national output to about 175,000 barrels, Gatkuoth said in response to questions sent by Facebook Messenger on Thursday. GPOC’s owners include China National Petroleum Corp., Malaysia’s Petroliam National Bhd, and Oil & Natural Gas Corp. of India.

A security review of the Unity oilfield area has been completed, while a technical assessment will begin by early April, Gatkuoth said. “Resumption can now start. We shall start with 40,000 barrels a day and move up.”

South Sudan, which has sub-Saharan Africa’s third-biggest oil reserves, was producing about 350,000 barrels per day in 2011, when it seceded from Sudan. Disputes with its former ruler over transit fees and then the outbreak of war in December 2013 has cut output of the East African nation’s only major source of revenue, spurring an economic crisis.

Production at Unity was halted soon after the conflict erupted. The war has left tens of thousands of people dead and forced at least 4 million others to flee their homes.

The U.S. has imposed sanctions on South Sudan, targeting current and former officials in President Salva Kiir’s government for their alleged roles in destabilizing the country. On Wednesday, the State Department restricted exports and transfers of U.S. items to 15 South Sudanese oil-related entities.

The U.S. sanctions are “zero affecting the production” of oil in South Sudan, Gatkuoth said.