South Sudan is expected to recommence oil production at the Thar Jath oil field in the Unity State which was put on hold by an over two years civil conflict in the country.

This conflict had reduced oil production capacity in the country to less than 130,000 bpd compared to the 350,000 bpd being produced in its only functioning Paloch oil field in the Upper Nile state.

According to the Minister of Petroleum, Dak Duop Bichok, the level of destruction caused by the conflict on oil fields and production was huge and oil companies with concessional rights to the vandalized oil blocks have decided to start renovation works on them.

“We told the oil companies to repair the oil fields within 4-6 months so that we resume the work and they proposed 8 months to a year. The damage caused to the block 5 in Thar Jath Oil field, Unity state requires immense repair work on it to resume production.” Bichok revealed.

He added that the companies have demanded for security and renegotiation of their five-year contracts, which were disturbed by the over two year’s civil conflict that began in December 2013.

“The companies demand renegotiation of their five year contracts that will soon end this year as guarantee for them to resume oil production. They say they want 10 years guarantee which we have not yet agreed upon,” the minister explained.

South Sudan under the 2012 cooperation agreement with Sudan decided to pay around $20 dollars per barrel as pipeline transit fees to Sudan.

Oil exports accounts for 98% of the country’s fiscal budget. Companies such as China National Petroleum Company (CNPC), Petroliam National Bhd and Oil & Natural Gas Corp. (ONGC) produce the majority of South Sudan's crude oil, Xinhuanet news reports.

Anita Fatunji