South Sudan Collaborates With Chinese Firm to Scale up 90,000bpd Oil Industry Amidst Renewed Surge in Violence

The latest efforts will concentrate on rebuilding infrastructure in the resource-rich regions of Unity, Ruweng, and Upper Nile, which have suffered from local conflicts and insufficient investment.

South Sudan Oil

South Sudan is working with China’s state-owned CNPC to scale up its oil industry, which currently produces between 60,000 and 90,000 barrels per day, following a series of attacks on oil facilities and export routes that led to a shutdown in May, shortly after operations briefly resumed amid the conflict in Sudan.

The South Sudanese Ministry of Petroleum and CNPC agreed on a technical partnership aimed at restoring key oil blocks, specifically blocks 1, 2, 3, 4, and 7, which are central to South Sudan’s production.

“We’ve set up a joint technical team to address logistical and operational barriers and to increase output in priority areas,” said Deng Lual Wol, Undersecretary at the Chinese Ministry of Petroleum.

Planned Upscaling

The latest efforts will concentrate on rebuilding infrastructure in the resource-rich regions of Unity, Ruweng, and Upper Nile, which have suffered from local conflicts and insufficient investment.

Production at blocks 3 and 7 in the Melut Basin, operated by CNPC, was halted for almost ten months due to instability in Sudan that disrupted the export pipeline. These blocks, which previously produced over 200,000 barrels per day, are now targeting a recovery to 90,000 barrels per day by 2025.

CNPC reiterated its commitment to the partnership, stating, “We’re ready to allocate the necessary resources and apply advanced technologies to help revive South Sudan’s oil sector,” in a statement released by the Petroleum Ministry.

The cooperation also includes resuming drilling activities, upgrading equipment, and training the local workforce. with the success of the project being largely dependent on improved governance, a conducive business environment, and meaningful skills transfer.

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South Sudan Renewed Conflict

The renewed conflict in South Sudan has escalated in recent weeks, threatening a fragile peace deal signed in 2018 and plunging the nation back into violence.The renewed fighting is between forces loyal to President Salva Kiir and those on the side of his rival, Vice President Riek Machar, particularly in the Upper Nile and Unity states.

The latest clashes has displaced tens of thousands of civilians, with reports of widespread atrocities, including targeted killings, sexual violence, and the destruction of villages. Regional and international actors have called for an immediate ceasefire, but efforts at mediation have so far yielded little progress, as both sides blame each other for violating ceasefire terms.

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