KENYA – East African nations of Sudan and South Sudan have signed a number of agreements that involve oil production in the two countries.

The countries have agreed upon the need to increase oil production in South Sudan, to use and benefit from the expertise and capabilities available in Sudan, and to speed up procedures to open a coordination office in South Sudan.

They also agreed upon the need for cooperation through training centres, laboratories, refineries and other facilities in Sudan, the establishment of a partnership working in the field of seismic survey data processing, and the possibility of adding additional quantities of crude oil to the El Obeid refinery.

Additionally, the need to open border control posts between the two countries to alleviate trading obstacles.

South Sudan’s relationship with its oil and gas reserves has been troubled and ambivalent.

“Covid-19 adversely affected the country’s output rates, decreasing it by 20-25,000 barrels per day”

Ever since its first day of existence, oil was Juba’s immediate opening to generate a steady flow of government revenues that could rejuvenate the country’s war-torn economy.

To some extent, South Sudan did manage to maintain a level of production feasible enough to resolve the quintessential issues.

Just as South Sudan’s oil production was nearing its 2020 objective of 200,000 barrels per day, Covid-19 adversely affected the country’s output rates, decreasing it by 20-25,00 barrels per day.

Fears of the pandemic spreading have also delayed the commissioning of South Sudan’s first refinery in Sabinat, which albeit at a mere 8,000 barrels per day, capacity could substantially improve oil products’ availability.

Since South Sudan attained independence in 2011, it has made only one minor discovery last year in Northern Upper Nile State with a 5.3 million barrels recoverable reserves tally.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.