Dar Petroleum Operating Company (DPOC) will restart oil production in South Sudan on January 8, 2025, following Sudan’s lifting of force majeure on its pipeline. This decision arises from improved security conditions in Sudan after a period of conflict that severely impacted South Sudan’s oil exports. The minister of petroleum anticipates significant economic benefits from the operations resuming with support from international partners.
South Sudan’s Dar Petroleum Operating Company (DPOC) is set to recommence oil production on January 8, 2025, following the lifting of force majeure by Sudan on its pipeline route to Port Sudan. This decision comes after a lengthy hiatus caused by security issues and a pipeline rupture that had severely impacted oil exports from landlocked South Sudan. With renewed safety measures in place, the resumption of operations is anticipated to bolster South Sudan’s economy significantly, as oil revenue constitutes a substantial portion of the country’s budget. The minister of petroleum has affirmed that DPOC will operate with the backing of international partners including CNPC, SINOPEC, and SSTO, and has instructed both DPOC and the Bashier Pipeline Company to initiate operations without delay. The pause in operations had resulted in a drastic decline in oil exports, critically hampering the nation’s revenue generation efforts.
The recent escalation of conflicts in Sudan has had a profound impact on South Sudan’s oil industry, which is vital to its economy. For about ten months, a force majeure declaration impeded oil exports through Sudan, following a major pipeline rupture amid ongoing military activity. This disruption coincided with a broader conflict that erupted in April 2023, involving the Rapid Support Forces and the Sudanese army. The lifting of the force majeure is, therefore, a significant development addressing both security concerns and the resumption of oil production, which is essential for South Sudan’s economic stability and recovery.
The recommencement of oil production in South Sudan represents a pivotal moment in the nation’s efforts to regain economic stability. With the resolution of previous security and operational challenges, DPOC is now positioned to revive its oil exports, thereby providing much-needed financial support to a country heavily reliant on oil revenues. This development not only enhances the cooperation between South Sudan and Sudan but also reaffirms the significance of oil to the region’s economic landscape.
Original Source: oilprice.com
