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As OPEC Cuts Take Effect, South Sudan Plans Output Increase

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War-torn South Sudan says it will increase oil production on the heels of an OPEC deal that promises to push global oil prices upwards for the time being.

According to South Sudanese embassy officials in the UAE, Juba is determined to increase production despite ongoing civil war and the struggle for control of the country’s government through oil.

“We are planning to increase oil production as oil prices go up to increase our revenue and expand the ways of oil industry. We suffered the most due to low oil prices. Rise in oil prices is a good news for us,” Mayom Alier, Deputy Head of South Sudan mission in the United Arab Emirates, was quoted as saying.

In May of this year, South Sudan said it would resume oil production by July after a halt of more than two years. During the civil war, the country’s production capacity fell to below 130,000 barrels a day from 350,000 bpd in its only functioning Paloch oil field of Upper Nile state.

Production did in fact resume, hitting around 130,000 bpd; however, civil strife broke out again in July and continues. In October, the army of South Sudan was prompted to deploy more troops around the Paloch oil field to keep it operational amid sporadic clashes that continue to claim lives and keep the field’s production capacity uncertain.

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Written by Charles Kennedy

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