• CNPC and South Sudan sign plan to rehabilitate key oil blocks 1, 2, 3, 4, and 7
• Output remains at 60,000–90,000 barrels/day amid ongoing export disruptions
• CNPC commits resources and tech support; concerns linger over governance, impact

South Sudan is partnering with China’s state-owned CNPC to revive its struggling oil sector, aiming to boost output that currently ranges between 60,000 and 90,000 barrels per day. The move follows repeated attacks on oil infrastructure and export routes that halted operations in May, after a brief restart disrupted by the conflict in Sudan.

During a meeting in Juba on June 16, the South Sudanese Ministry of Petroleum and CNPC agreed on a technical cooperation plan to rehabilitate oil blocks 1, 2, 3, 4, and 7, the country’s primary production areas. “We have agreed to establish a joint technical committee to overcome operational and logistical challenges, and increase production at key sites,” said Deng Lual Wol, undersecretary at the Ministry of Petroleum.

The focus will be on restoring infrastructure in the oil-rich regions of Unity, Ruweng, and Upper Nile, where facilities have been degraded by intercommunal violence and a lack of investment.

Production at blocks 3 and 7 in the Melut basin, operated by CNPC, was suspended for nearly ten months due to instability in Sudan that shut down the export pipeline. These blocks once yielded over 200,000 barrels per day and are now targeting a return to 90,000 barrels per day in 2025.

CNPC reaffirmed its commitment to long-term collaboration. “We are ready to mobilize necessary resources and incorporate modern technologies to support the recovery of South Sudan’s oil sector,” a company representative said in a statement issued by the Ministry of Petroleum. The cooperation plan also includes resuming drilling, upgrading equipment, and training local staff.

However, several observers stress the need for improved governance, a better business climate, and genuine skills transfer. Past partnerships have yielded limited benefits for local communities, and environmental damage—particularly near Thar Jath—remains a concern. “We want our resources to genuinely benefit our economy and our citizens,” Deng Lual Wol emphasized.