South Sudan to export 3 million barrels of oil in September

August 14, 2018 (JUBA) - South Sudan is expected to pump three million barrels of oil crude next September, increasing its exports of 7.14% from the level of its produced in August, said Platts a news ......

August 14, 2018 (JUBA) - South Sudan is expected to pump three million barrels of oil crude next September, increasing its exports of 7.14% from the level of its produced in August, said Platts a news agency specialised in energy information on Tuesday.

Last July, Khartoum and Juba agreed to repair the damaged oil wells and to resume oil production in several oil fields stopped since several years due to the nearly -five-year armed conflict in the country.

South Sudanese Oil Minister Ezekiel Lol Gatkuoth on 31 July 2018 told reporters in Khartoum that oil production will resume on 2 September with 45,000 barrels per day from El Toor and Toma South fields. After what will restart the production of other oil fields in Munga and Unity.

In line with the increase of oil production, South Sudan will produce 100,000 barrels per day of Dar Blend crude in September. Before December 2013, the east African country produced 250,000 barrels per day.

"A total of five cargoes were scheduled for lifting in September from Sudan’s Marsa Bashayer terminal, " market sources told the agency. Each cargo will load in 600,000-barrel clips.

In this August South Sudan, exports of Dar Blend will total 2.8 million barrels in four cargoes.

South Sudan heavily relies on oil income to fund up to 98% of its budget. Also, it relies on the Sudanese pipeline to export its oil production through the Red Sea.

In return, the transit and processing fees South Sudan pays to Sudan to transport its crude oil are an important revenue stream for Sudan.

South Sudan production is expected to increase further during the upcoming months, as the income will be dedicated to funding infrastructures and recovery programmes in the country and the peace implementation process.

China, India and Japan are the main buyers of the South Sudanese heavy oil crude.

Dar Blend is produced from blocks 3 and 7 in South Sudan’s northeastern states located in the Greater Upper Nile region.

(ST)