A South Sudanese researcher has urged the government to get rid of the ‘outdated Chinese technology’ employed in the oilfields and acquire modernized ones to increase production.
Dr. Lual Acuek Deng, the Managing Director at the Ebony Center advised the government to replace the pipeline and drilling machines which he believes are to blame for the dwindling oil production output.
“Get rid of inferior Chinese technology I am sorry to say that. I am not a diplomat, I am a researcher, I am a former Minister of Petroleum I know what that technology mean and bring America technology we will improve production,” said Dr. Deng.
In August last year, the Ministry of Petroleum disclosed that the oil production has decreased from 165,000 to 156,000 barrels per day.
The figures were also down from the 180,000 barrels per day output in 2019.
The petroleum ministry also revealed that oil production in Blocks 3 and 7 dropped to 103,000 barrels per day, from 120,000.
Blocks 1, 2, and 4 were producing 48,000 barrels per day, down from 53,000 barrels per day.
Block 3 and 7 operated by DAR Petroleum Operating Company while Toma South field on blocks 1, 2, and 4 are being operated by Greater Pioneer Operating Company.
Production however, resumed at the Thar Jath field, in Block 5A, at 3,000 barrels per day.
Dr. Deng, who spoke during a panel discussion on financing development in South Sudan in Juba believes that replacing the decades old pipelines with new machines will enhance the capacity of oil production.
“With improved technology, we will be able to produce 500 or half a million barrels a day and let us assume that the oil prices will be $50 per a barrel by the end of our second decade of our independence we will be getting more than 12.5 million barrel a day which translate to 4.5 billion barrel a year, just oil.”
Last week, Petroleum Minister Puot Kang Chol blamed the country’s economic crisis to lack of crude oil refineries.
Puot Kang believes that enough refineries can help maximize production and generate hard currency in the market.
South Sudan currently does not have any significant storage capacity for its oil prompting it to export all of its crude oil via pipeline through Sudan.
Recently, the World Bank published the Country’s Economic Memorandum detailing hindrances and potentials to South Sudan’s economic growth.
According to the World Bank, oil and agriculture dominate of the country’s economy – with oil contributing 90% of revenue and almost all exports – while agriculture remains the primary source of livelihoods for more than four in five households.
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