Sudd Petroleum Operating Company announced yesterday in Juba that it would be producing at fully capacity within three to four weeks, in compliance with a ministerial order to recommence oil operations.
“We are sure: about 3-4 weeks before we go back to full production and full export,” said Emi Suhardi Mohd Fadzil, president of Sudd Petroleum, speaking to press in Juba.
Sudd Company operates the Block 5A concession, which covers much of the west bank of the Nile in Unity State and part of Zeraf Island on the east bank. The company is owned jointly by Malaysian company Petronas and state-owned Nilepet.
Fadzil was speaking at a conference at which the Minister of Petroleum Stephen Dhieu Dau ordered operating companies to resume their work, in light of the implementation arrangements signed earlier in the week between Sudan and South Sudan.
The ministerial order referred to a nearly identical order dated 18 October, which had stated that the time was then right for South Sudan to end the shutdown, explaining that it “has served its purpose to protect the sovereignty and patrimony of the nation.”
Dhieu’s order had to be scuttled, however, because the changing political situation caused the Government of Sudan to affirm on 13 November last year that “it was not ready to receive crude oil from the territory of the Republic of South Sudan,” according to yesterday’s ministerial order.
South Sudan’s oil ministry sent notice the following day, 14 November, directing all operating companies to postpone their work. Ending that postponement, yesterday’s directive asks the companies “forthwith to recommence and re-establish the production of crude oil and all petroleum operations within producing blocks 1/2/4, 3/7 and 5A.”
Sudd Petroleum president Fadzil commented, “This means a lot to the oil operating company because now we have got the license, we have got the permission to resume oil production. We were undergoing shut-down for more than a year.”
“We as an oil company, as the operator of block 5A, we are ready. We have made sure all this while that our facilities our ready. We have made sure that our people are trained and geared up to resume the oil production. So this means a lot actually. What we heard today from the minister means so much to the oil company,” he said.
He added: “We have to start working back the pipelines, looking to our pumps and whatnot, the equipment per se. And I think if we look into our own schedule we should be back within three to four weeks resuming back the production. Hopefully earlier than that, but that is our schedule.”
It was not clear how long it would take production to resume in the oil fields in Upper Nile State, which are operated by Chinese-owned Dar Petroleum. That resumption operation will proceed along a different timetable.