South Sudan is preparing to restart crude oil production in blocks 3 and 7, with an initial target of 90,000 barrels per day. The announcement was made on Tuesday by the Oil Minister, Puot Kang Chol, at a press conference in Juba.
This decision comes after a year of disruption caused by communal violence and civil war in neighbouring Sudan, which have taken a heavy toll on the country's economy and interrupted the transport of crude oil to export ports on the Red Sea.
"You all know that this will be a gradual process. You won't get the figure you need in a day, but our target is 90,000 barrels a day," said the Minister. He pointed out that this production represented the maximum capacity of the pipeline in this first phase. "If we have the opportunity to increase it further, we will do so," he added.
The recent lifting of the force majeure order by Sudan, following an improvement in the security situation, has paved the way for the resumption of oil exports from South Sudan via Sudanese infrastructures. This order, which had been in force for almost a year, had blocked access for South Sudanese exports to international markets.
At the same time, the South Sudanese government concluded an agreement with the Malaysian company Petronas, allowing it to repay its shares until a new partner is found to replace this historic producer. Petronas had announced in August 2024 that it was pulling out after nearly three decades of operations in the country, citing disputes with the government.
Petronas had also taken legal action against South Sudan, accusing it of blocking the sale of its local assets worth 1.25 billion dollars. Despite this departure, Puot Kang Chol has assured that Petronas' partners - China National Petroleum Corporation, SINOPEC and Tri-Ocean Energy - will continue their activities without interruption.
Before the civil war in Sudan, South Sudan produced around 150,000 barrels of crude oil a day, mainly exported via Sudanese infrastructure, under agreements signed after South Sudan's independence in 2011.
However, recent conflicts, combined with security and economic challenges, have reduced the country's production capacity. The revival of blocks 3 and 7 is seen as a crucial step towards revitalising the national economy, which is heavily dependent on oil revenues.
For South Sudan, oil production remains an economic lifeline, but challenges remain, particularly in terms of governance, foreign investment and maintaining regional stability.
Despite these obstacles, Puot Kang Chol was optimistic about the country's prospects for oil development: "We are working to maximise our resources, secure our infrastructure and attract new partners to support our economy and improve the lives of our citizens.
With this recovery, South Sudan hopes not only to re-establish its place on the international oil markets, but also to lay the foundations for lasting economic stability.
