Production

South Sudan seeks technical support from Khartoum to resume oil production from the Unity oil fields

Tuesday, 23 August 2016 14:02

South Sudan has asked Sudan for technical support in restarting oil production from the field located in the Unity area, Vice President, Taban Deng Gai(photo), revealed.The Vice President stated this after a meeting between South Sudan’s Oil Minister, Ezekiel Gatkuoth, and his Sudanese counterpart, Mohamed Zayed Awad.

According to him, the two countries are to work together in the production of crude oil in the country and Sudan will provide the required assistance needed to boost production of the Upper Nile fields and also resume production on the Unity region.The Unity oilfields have been shut down since 2014, because of fights between the government and the SPLM-IO troops. This resulted in a lack of oil revenue which affected the country’s economy as it relies solely on crude oil exports.

Sudan’s Mohamed Zayed Awad in a statement said his country is ready to support and assist South Sudan in increasing oil production, resume oil production from Unity wells and to review the oil transit fee agreement.

For his part, South Sudan’s Petroleum Minister, Ezekiel Lol Gatkuoth, said he was contented with the result of the meeting and hailed Sudan’s willingness to cooperate with the country in the oil production industry.We are here to open a new page of cooperation and bring a shift in the oil production for the benefit of the two peoples,” he said.

After oil prices fell in the global market, South Sudan requested for a review of an agreement signed in September 2012. Under the deal, Juba will pay Khartoum $9.10 for the oil produced in Upper Nile state and $11 for that of Unity state which produces 20% of South Sudan’s oil.

However, in January 2016, Sudan agreed in principle to reduce the payment but the technical teams did not arrive at an agreement due to the delays in their works, Sudan Tribune reports.

Anita Fatunji

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