Oil production will resume in 3 weeks: Sudd Petroleum
March 15, 2013 (JUBA) – Sudd, a petroleum company jointly owned by Malayia’s Petronas and Nilepet, says it will resume full oil production and export, as instructed by South Sudan government, within a month. South Sudanese soldiers at an oil refinery in Upper Nile state (AFP) Stephen Dhieu Dau, country’s oil minister on Thursday ordered oil companies and pipeline operators to immediately resume production of crude oil for delivery to international markets through Sudan, as part of commits to implement an agreement it signed with its northern neighbour this week. The minister said production would resume in blocks 1, 2, 4, 3, 7 and 5A. “As Sudd Petroleum Operating Company, we are sure to resume full production and export in about 3-4 weeks”, Emi Suhardi Fadzil, the company’s boss told journalists at a press briefing in the capital, Juba. The Sudd Company, according to Fadzil, operates the Block 5A concession, in South Sudan’s rich Unity state. Disagreement over oil charges, in January last year, prompted South Sudan to shut down oil production, accusing Sudan of stealing its oil and diverting it into other pipelines. However, the two sides signed an agreement in September 2012, allowing Juba to resume export through Sudan, but disagreement of border security issues has delayed implementation of the deal. Dau said South Sudan government was committed to the full implementation of the September agreement, particularly the issue relating to resuming oil production. Before the shutdown South Sudan’s 350,000 barrels per day provided 98% of the government’s revenue. The closure has also effected Sudan’s economy, which lost 75% of its oil production when South Sudan seceded in July 2011. The minister’s order revoked an instruction issued on 14 November 2012, which instructed oil companies working in South Sudan to postpone resumption of production, due to additional conditions raised by the government of Sudan. "The oil resumption order shall continue in all aspects to have full force and effect and be binding on the foreign oil companies and pipeline operators in the republic of South Sudan”, Dau told reporters. “This supplemental oil resumption orders is issued without prejudices to order to suspend or terminate in future in whole or in part of the crude oil resumption production and petroleum operations in the republic of South Sudan as permitted by law or any agreement to which the republic of South Sudan is a party”, he added. South Sudan gained independence in 2011 from neighbouring Sudan after fighting repeated wars against successive Khartoum regimes, over inequality, separating religion from politics and identity. Despite a six-year peace deal and almost 20 months since its independence, South Sudan and its northern neighbour have still not agreed on the status of disputed areas and large areas of the oil-rich border are not yet demarcated. (ST). -- You received this message because you are subscribed to the Google Groups "South Sudan Info - The Kob" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. For more options, visit https://groups.google.com/groups/opt_out.
