South Sudan has reached an agreement with joint oil operating companies to scale up exploration and drilling activities in prospective oil fields, as the country aims to increase oil production to shore up its struggling economy.
Undersecretary in the Ministry of Petroleum Deng Lual Wol said the agreement was sealed during a meeting held in Juba, the capital of South Sudan, on Thursday. The meeting, chaired by Vice President and Chairperson of the Economic Cluster Benjamin Bol Mel, brought together officials from the Ministry of Petroleum and the heads of oil operating companies.
Wol said the meeting discussed strategies for enhancing crude oil production in the short-to-medium term.
“The key resolutions made include the formation of a task force comprising the Ministry of Petroleum and joint oil operating companies to fast-track the maintenance and rehabilitation of key oil fields to improve oil production,” he said.
Other resolutions included enhancing local content and workforce development to build national capacity within the oil sector, scaling up exploration activities such as drilling all potential prospects near development areas, and deploying new technologies to address high water cuts and sand production in oil and gas wells.
In January, the Ministry of Petroleum announced the resumption of oil production in blocks 3 and 7 located in Upper Nile, aiming to produce initially 90,000 barrels a day before increasing output.
Wol said the agreement has also guaranteed continuous production in the two blocks, whose production sharing agreements were set to expire in 2027.
“We have reached an agreement with the partners to continue operating in South Sudan,” he said.
Blocks 3 and 7 are operated by Dar Petroleum Operating Company, a consortium that includes state-owned Nile Petroleum Corporation and international partners. The ongoing war in neighboring Sudan has disrupted oil production in South Sudan, forcing Malaysian multinational oil and gas company Petronas to exit the country due to operational challenges. Enditem
Source: Xinhua
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