20th January 2025
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Oil flow set to begin as Sudan lifts force majeure

Author: Ahadi Hawari | Published: January 7, 2025

A man inspects a leakage on an oil pipeline. (AFP photo).

Petroleum Minister Puot Kang has announced the resumption of oil production in Upper Nile state, which is due tomorrow following the resolution of pipeline and security concerns and the lifting of force majeure by Sudan.

He confirmed the restarting operations at Blocks 3 & 7 on January 8, 2025 with the full support of the international partners.

“Today (Tuesday), we are making a press release on the kick-off date for DPOC resumption in Block 3 and 7, on behalf of the Ministry of Petroleum and the government of the Republic of South Sudan.”

These are such as China National Petroleum Company (CNPC), China Petroleum & Chemical Corperation (SINOPEC), and South Sudan Tri Ocean SSTO.

Minister revealed that Dar Petroluem Operating Company and Bashier Pipeline Company (BAPCO) have been instructed to commence operations immediately.

“I would like to bring to the attention of the public that since last year, the Ministry of Petroleum, the Ministry of Energy and Petroleum of Sudan, the partners, DAR Petroleum the BAPCO, which is the company responsible for Pipeline and partners have been working tirelessly through, several technical and political meetings and arrangements to ensure resumption of block 3 and 7 .

According to him, the production is estimated at 90,000 barrels a day for six months starting tomorrow.

“You all know it is going to be a gradual process. You will not get the required figure in one day, but our target is 90,000 barrels a day.

“This is what the pipeline will accommodate in the first phase and then thereafter. So, in the first six months, our target is 90,000 barrels a day then thereafter. We will go.”

Minister Puot added that the government and partner have arranged on how payment of  the cash shall be made on behalf of exited Petronas until a entity takes over from Petronas.

“We have arranged with partners as to how we shall be paying the cash call on behalf of Petronas until when the government of South Sudan has named officially  the Entity that shall take over from Petronas. That arrangement, we have done it and we believe that it will not affect deep of operation or DPOC, SPOC in any manner.

Minister Kang commended the companies for ensuring the challenges that hindered the resumption of oil flow and production.

“My special thanks go to foreign partners CNPC, SINOPEC, and SSTO for the attempted support technical and financial to realization of this resumption.

“There were several concerns from the partners about the technical Readiness of the pipeline lifting of force majeure and security assurance.

“But those concerns were addressed by letters from BAPCO, the company responsible for the pipeline on the redness of the pipeline itself, and a recent letter from Sudan’s Ministry of Energy and Petroleum that its the fourth of January 2025 for the official lifting of force majeure.”

The main pipeline carrying oil from South Sudan through Sudan for export was halted in February last year because of damage stemming from war in Sudan.

 

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