South Sudanese government on Friday decided to allocate more crude oil to Chinese firms to build roads and other development projects in the young nation.
Michael Makuei, the minister for information and communication, said the quantity of crude oil allocated to China for development projects will now increase from 10,000 barrels per day to 30,000 barrels per day.
“As you know very well we have adopted the policy of oil for development. This is why last time we approved the value of 10,000 barrels per day to be deposited into an account in China, so this was to be used for the construction of the roads,” he said.
“The cabinet approved additional 20,000 barrels to make it 30,000 barrels per day to be deposited into an account in China for the infrastructure, especially for the roads and other development projects,” he added.
Makuei, who is also the government spokesman, did not specify a deadline on when the allocation of 30,000 barrels of crude oil per day to China should end. South Sudan’s Dar blend is being sold for about $60 per barrel in the international market.
The minister noted that the proposal to allocate more crude oil for development projects was presented by the country’s first vice president, Taban Deng Gai.
“The presentation asked the cabinet to approve more crude oil for development in South Sudan, so the presentation was approved and adopted,” he said.
Last week, a Chinese firm said it was ready to start constructing 392 kilometers of paved roads from Juba, Terekeka, Yirol to Rumbek. President Salva Kiir and his Chinese counterpart Xi Jinping made the initial deal last year in Beijing.
South Sudan has the third largest oil reserves in sub-Saharan Africa, but most of its oil facilities have been damaged in the conflict that erupted in 2013.
Some of its oilfields have recently resumed oil production.