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South Sudan to comply with OPEC deal after boosting oil production

Author : Memoscar Lasuba | Published: Friday, December 16, 2016

The Minister of Petroleum says South Sudan has agreed to reduce its oil production once it hits 350,000 barrels per a day from next year.

Ezekiel Lol Gatkuoth said this is in compliance with the decision by the Organization of Petroleum Exporting Countries,OPEC, which urges oil producing countries to adjust production in order to stabilize crude oil prices in the global market.

A meeting held in Vienna last week noted that OPEC Member Countries have decided to implement a production adjustment of 1.2 million barrels a day effective from 1st January 2017.

The decision was taken to control the persistent oversupply and record inventories in the global oil market.

Countries such as South Sudan and Sudan who are still non-OPEC producers proposed to adjust their oil production, voluntarily.

The Minister of Petroleum says, South Sudan is currently producing less that the targeted oil production cap.

In an exclusive interview with Eye Radio, Ezekiel Lol says the country is only producing 130,000 barrels a day.

He said South Sudan will first need to boost its production, before it can reduce to the required amount.

“I am actually moving to make sure that it is taken up to where it was, 350000 barrels a day. And then from there we can cut 8000 barrels a day from – 350000 barrels a day,” Lol said.

According to OPEC, the managed decline in production is also extendable for another six months, to take into account prevailing market conditions and prospects.

The body says the decision will achieve oil market stability in the interest of all oil producers and consumers.

It underscored the importance of other oil producing countries joining their efforts.

Over the last two weeks, OPEC says, oil prices have surged more than 15 percent since it announced it will cut production for the first time in eight years, rising briefly above $55 per barrel.

 

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