South Sudan’s oil minister said Monday that his country plans to increase daily crude oil production to 350,000 barrels per day this year, to secure sorely needed cash for its ailing economy.
South Sudan, where oil revenues make up nearly 98 percent of the budget, has been reeling under an economic crisis due to the ongoing civil war. But the current government in Juba has been courting new investment to revitalise the oil sector.
“We are estimating by the end of the year we will reach 200,000 barrels per day. We will make sure it reaches what it used to be,” Ezekiel Lol Gatkuoth, the oil minister, told reporters on the sidelines of an African oil conference in Cape Town.
Gatkuoth said his country would also resume stalled negotiations with Tullow Oil and Total over blocks B1 and B2 after it stopped direct talks in April due to irreconcilable differences.
"But now they have written to me to say they are interested to resume the negotiation so that we can reach a deal," he said.
According to the South Sudanese minister, disagreements with the companies included capital gains tax, recovery costs, and the period of exploration.