South Sudan to Resume Oil Production Following Lift of Force Majeure
Dar Petroleum Operating Company (DPOC), the principal oil operator in South Sudan, will resume production after Sudan lifted the force majeure on pipeline routes. The decision follows improved security arrangements after a previous pipeline rupture hindered operations for ten months. The Minister of Petroleum emphasized the restart’s positive economic impact, crucial for a country that relies significantly on oil exports for its revenue.
South Sudan’s Dar Petroleum Operating Company (DPOC) is set to recommence oil production after Sudan lifted the force majeure that had been in place regarding the pipeline route through Sudan to Port Sudan on the Red Sea. This announcement, made by South Sudan’s Minister of Petroleum, Puot Kang Chol, indicates that oil operations will resume on January 8, 2025, following improved security conditions and the resolution of pipeline issues. The lifting of the force majeure comes after a ten-month period where oil exports from the landlocked nation were significantly hindered due to a rupture in the pipeline earlier this year, combined with military activities in the region.
The conflict which erupted in Sudan in April 2023 between the Rapid Support Forces and the Sudanese army has severely impacted South Sudan’s oil exports. Historically, oil exports have been critical to South Sudan’s economy, accounting for approximately 90% of the nation’s revenue. The resumption is viewed as a significant step towards stabilizing the South Sudanese economy, which had suffered greatly due to the lack of oil revenue since the conflict escalated. South Sudan now plans to proceed with operations in Blocks 3 & 7, supported by international partners including CNPC, SINOPEC, and SSTO, as stated by Minister Chol.
The lifting of the force majeure and the impending restart of oil production in South Sudan is a pivotal moment for the country, which relies heavily on oil exports for its economic viability. The force majeure had been in effect for ten months following a significant pipeline rupture. The geopolitical situation in the region, particularly the conflict in Sudan, has also affected the stability of oil operations. With the newly established security arrangements in Sudan, it is hoped that such disruptions will be minimized, allowing South Sudan to restore its vital oil exports and economic health.
The resumption of oil production in South Sudan marks a critical juncture for the nation’s economy. The lifting of the force majeure illustrates improved security conditions and capacity for oil flow through Sudan. With DPOC set to restart operations alongside international partners, South Sudan is optimistic about rejuvenating its economy, which is predominantly reliant on oil revenues. The ongoing stability will be paramount for sustained operations and revenue generation moving forward.
Original Source: oilprice.com
