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South Sudan admits conflict has hampered oil production

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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.

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South Sudan oil minister Stephen Dhieu Dau celebrates on May 5, 2013 with local dancers in an oil production facility in Paloch in Upper Nile state, the resumption of oil production after a 16-month hiatus (Getty)

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).

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  • 26 May 2014 08:46, by Jalaby

    Mr. Oil Minister,
    You really want additional explorations to be carried out in the area while you messed the whole situation in the south and made the security null?! how oil companies can explore the oil under such situation?
    If we assumed they came and explored it and found it, through which pipeline they’ll export it? Arab/Jalaba’s pipeline again?!

    repondre message

    • 26 May 2014 08:52, by Jalaby

      Those guys are visionless and they will continue that way, I was pretty sure that as soon as they separated from north then they will mess it up completely in the south and none of us (south or north) will get benefit of that oil again!
      if Arab/Jalaba left that job for you,would you really be able to explore/export even one barrel of oil!
      Thanks Arab/Jalaba anyway!

      repondre message

      • 26 May 2014 14:55, by Bentiu Sudan

        Jalaby,
        Thanks for making this extraordinary comments to Dhieu Dau. We need Arab government to ban this South oil transfer through Sudan’s oil pipeline or Sudan can take 90% of oil production and Kiir have 10%. or Sudan government can cooperate with the Rebels so the Sudan government can supply rebels with heavy arms and artilleries and then in return Sudan can take the oil for free.

        repondre message

        • 26 May 2014 15:09, by Bentiu Sudan

          Now the people who benefit from South Sudan’s oil are Uganda, Kenya, Rwanda, Burundi, SPLA-N, JEM, and Egypt which have ground forces in South Sudan. At the moment, the South Sudan armies are not getting pay. In stead, kiir use this oil’s money to pay mercenaries and South Sudanese army generals only. For now I like Sudan to ban South oil transfer through it pipeline or take 90% of oil.

          repondre message

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