17th December 2025

Gov’t aims to cut oil production costs, increase output in 2025

Author: Michael Daniel | Published: August 11, 2025

Paloich oil field in Melut County, Upper Nile State - Photo credit: courtesy

The Ministry of Petroleum has revealed plans are underway to slash production costs and ramp up oil output this year.

This is according to Eng. Deng Lual Wol, the Undersecretary of the Ministry of Petroleum, who made the announcement during a visit to Paloich oil field oon Friday.

Eng. Wol said the strategy involves prioritizing intensive training for oil operation staff to address manpower shortages affecting efficiency in oil fields nationwide.

“My focus in the oil industry this year is for the human development, a capacity building, starting from the technician, skill, engineers, for us to be able to take over when the time comes,” he said in a statement to the state-run SSBC TV, following a trip to Palouch oil field, Pumping Station One, the power plant, and field processing facilities in Melut County, Upper Nile State.

He said the training programs will focus on technicians and engineers, aiming to equip South Sudanese professionals with the skills needed to eventually take full control of the country’s oil operations.

“If the cost has increased, that will impact on the entitlement of the government.  So, our target this year is to minimize the cost and increase the production,” he stated.

According to reports, South Sudan currently produces approximately 100,000 barrels of oil per day, an output that, according to Eng. Wol, is insufficient to offset rising production costs and could significantly undermine government revenues if not addressed.

Meanwhile, Manager Eng. Mawien Kon, the Manager of Dar Petroleum Operating Company (DPOC), one of the oil production consortium operating the Paloich oil field, said boosting production could be achieved through workover operations maintaining and repairing existing wells which cost less and take less time than drilling new wells.

“If you want to increase your production, using the easiest way to keep the BLA2 or sustain the production, just you go for workover.  Instead of drilling new wells, less cost, less time, and getting more oil,” he said.

Oil exports from South Sudan were severely affected by the outbreak of war in Sudan in 2023.

The country’s crude is transported through Sudanese territory for export, making stability along the route critical to maintaining revenues.

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