South Sudan has signed extension of oil exploration and production agreement with Malaysian, Chinese and Indian companies to resume activities after nearly 5 years of interruption.
The country’s Petroleum Minister, Ezekiel Gatkouth announced on Monday that the contracts with Malaysia’s Petronas, China National Petroleum Corporation (CNPC), Natural Gas Corporation of India and South Sudan’s state-run Nile Petroleum Company (Nilepet) would run for six years
“We have extended block 1, 2 and 4 for six years and eight months. They will continue operating there. It is a win-win for all of us,” he said.
The minister, however, did not the reveal the percentage of exploration and production and sharing agreement between South Sudan government and the foreign countries.
The revenue sharing percentage remains confidential between the government and the companies.
The consortium is going to continue with their operation in the three blocks through Greater Pioneer Operating Company (GPOC).
South Sudan expects to resume the 2013 peak production of 350,000 barrels per day before the outbreak of a bloody civil war in December 2018.
“Honorable Minister Gatkuoth reaffirmed the government efforts to hit peak oil output of 350,000 barrels per a day (bpd) by mid-2019 as production ramps up at oilfields that were shut down,” a statement from the Petroleum Ministry said.
The resumption of oil production, which accounts for over 90 percent of the country’s revenue, is however dependent on the current peace talks taking place in Khartoum.
The nearly five years of inactivity in oil industry has adversely affected the economy making the fragile nation one of the worst economies in the world registering negative 3.42 percent growth in 2017.Follow @chimpreports