Africa-Press – South-Sudan. South Sudan’s oil production has reduced from the previous 169,000 barrels a day to 156,000 bpd due to heavy flooding, an official said Wednesday.
Agak Achuil Lual, minister of Finance and Economic Planning said while tabling the 2022/23 fiscal budget before the transitional national legislative assembly on Wednesday.
“The severe floods which have hit South Sudan for the third year in a row have affected oil production which declined from 169,000 barrels per day in the fiscal year 2020/2021 to 156,000 barrels per day in the fiscal year 2021/2022,” Achuil said during the presentation of the budget on Wednesday in Juba.
Achuil said the oil production is projected to drop to around 150,000 bpd per day between 2022 and 2023.
“The oil is projected to drop to around 150,000 barrels per day in the fiscal year 2022/2023. The floods have also affected agriculture output, killed livestock, and have had a severe impact on people’s access t essential services and humanitarian aid.”
South Sudan ranks third in oil reserves in Sub-Saharan Africa with roughly 3.5 billion barrels produced annually.
Still, 90% of the gas and oil reserves are untapped, and the government recently said it will begin a licensing bidding process to foreign investors to increase production and revenues.
Oil fields were destroyed during the civil war and industry figures show the sector went from producing 350,000 barrels per day to 150,000 barrels.
South Sudan has largely employed Chinese and Malaysian engineers to produce and export the country’s crude to Sudan, where it is processed and sent on to the international market.
The South Sudan government says it lost more than $4 billion to some 500 oil companies in unpaid taxes since 2011, and the government has enacted measures to recover the money.