South Sudan to increase oil output amid rising prices

South Sudan’s Ministry of Petroleum has announced renewed efforts to increase oil production, citing favorable global prices and the need to maximize national revenue despite ongoing regional and international challenges.

Addressing a press conference in Juba on Wednesday, Chol Deng Thon, the Undersecretary of the Ministry of Petroleum, said the government is working closely with oil partners to scale up output, even as global maritime disruptions linked to tensions in the Middle East continue to affect logistics.

“We are cognizant about the logistical challenges facing global maritime routes caused by ongoing conflicts in the Middle East, but we are pushing forward with increasing production,” he said.

The undersecretary revealed that the ministry has recently held a series of meetings with joint operating companies, including Dar Petroleum Operating Company, as well as other operators in the Greater Pioneer and Sudd oil projects, to coordinate efforts aimed at boosting production.

He said the push comes at a time when global oil prices have surged above USD 100 per barrel, presenting an opportunity for the country to increase earnings from its oil sector, which remains the backbone of the economy.

Chol highlighted recent progress in the Al Nahal field located in Blocks 3 and 7 in Upper Nile State, where ongoing drilling activities have unlocked new production potential. One of the wells, Al Nahal W8, is currently producing about 5,440 barrels per day with minimal water content, significantly outperforming average wells in the region.

According to the ministry, the new output has contributed to an increase in overall production from around 95,000 to 100,000 barrels per day flowing through the export pipeline.

“This is a significant achievement, and it shows the potential that exists in the field. With continued investment and work, production is expected to increase further,” he said.

However, the official noted that not all oil revenues go directly to the government, as portions are allocated to operational costs, transit and processing fees paid to Sudan, and community entitlements, including two percent for oil-producing states and one percent for future generations.

Despite these deductions, the government remains optimistic that increased production will translate into improved revenues and economic benefits for the country.

The ministry also commended its partners, including China National Petroleum Corporation, Oil and Natural Gas Corporation, and Nile Petroleum Corporation, for their continued investment and technical support.

Chol said further exploration and drilling campaigns are ongoing, expressing confidence that South Sudan will be able to raise production levels in the near future despite the challenging global environment.

When asked about the impact of the U.S.-Israel-Iran war on South Sudan’s oil export to the international market, Chol said the ongoing tensions around the Strait of Hormuz are unlikely to significantly disrupt South Sudan’s oil exports, noting that shipments mainly pass through the Bab al-Mandab Strait to Asian markets.

He added that China remains the country’s primary buyer, meaning exports are expected to continue largely unaffected despite the regional instability.

For his part, Dr. Ling Zongfa, the President of Dar Petroleum Operating Company, said the company has drilled 16 wells since resuming operations in October, with 12 already commissioned, noting that production has exceeded initial forecasts due to improved reservoir management and use of new technologies.

He added that continued studies and investment will support further contributions to South Sudan’s economy.