South Sudan’s oil production has dropped to170, 000 barrels per day from 185,000 due to the Covid-19 pandemic, a senior Petroleum ministry official said.

The spread of Covid-19 poses a significant threat to the global oil industry. The increasingly drastic action taken to reduce the spread of the virus interferes with many of the sector’s key processes.

 “COVID-19 has affected oil production in South Sudan just like any other country in the world. It has become a global crisis, it is not only confined to South Sudan. I think we have been affected more than others. South Sudan being a new country that emerged from war has a lot of challenges to undertake,” Awow Daniel Chuang, the Petroleum ministry undersecretary said on Monday.

He added, “Because of Covid-19, the slowdown of the economy has caused problems to South Sudan, which mainly depends on oil proceeds.  I remember in the last few months, we experienced prices that have never been there before and the government did not get any money. Some of the logistics became very difficult.”

According to the official, the recent closure of seaports in neighbouring Sudan and Kenya greatly affected the production of oil.

“South Sudan pays fees to its northern neighbour to get its oil to ports. It has negotiated to defer $6 a barrel of the $24.10 a barrel it costs to ship the crude oil,” he explained.

Awow said South Sudan is cooperating with the Organization of Petroleum Exporting Countries (OPEC) to control the supply of oil.

Income from oil accounts for 98 percent of South Sudan's budget.

In June, the Central Bank of South Sudan said it will start buying crude gold from local miners to boost the country’s economy.