South Sudan and Sudan have signed an agreement to increase oil production in South Sudan’s northern fields from 170,000 barrels per day (bpd) to 300,000 bpd within the next three years.
Commencing from 2021, the agreement provides for enhanced bilateral relations by focusing on investment and production as a way to mitigate economic challenges being experienced by both countries.
The agreement was signed during a three-day joint meeting of a technical committee forged between the countries’ respective oil ministries and establishes a joint company for seismic surveys, analysis and the sharing of information. The agreement also provides for the introduction of a coordination office to facilitate engagement.
“We have discussed issues related to the production increase because we know that production has dropped and those challenges are technical in nature,” stated Awow Daniel Chuang, South Sudan’s Undersecretary of the Ministry of Petroleum. “Current production is between 165,000 to 170,000 bpd, but we want to increase it to 300,000 bpd within two to three years from 2021.”
Sudan aims to leverage its capacity to help South Sudan resolve logistical challenges and increase oil output, so as to utilize additional crude from its neighbor to operate the El Obeid refinery.