Sudan, South Sudan reach deal to ramp up oil production to 300,000 BPD

©www.aljazeera.com

JUBA, Jan. 14 (Xinhua) -- South Sudan and Sudan have reached a deal to increase oil production from the current 170,000 barrels per day (BPD) to 300,000 BPD within the next three years from 2021.

Awow Daniel Chuang, South Sudan's Undersecretary of the Ministry of Petroleum said that they aim to increase production in the northern oil fields of the youngest nation which were disrupted by more than six years of conflict.

"We have discussed issues related to the production increase because we know that the production has dropped and those challenges are technical in nature," Chuang told journalists in Juba on Wednesday evening after meeting with Hamid Suleiman Hamid, the Undersecretary of the Ministry of Energy and Mining of Sudan.

"The current production is between 165,000 to 170,000 BPD, but we want to increase it to 300,000 BPD within two to three years from 2021," Chuang disclosed.

He acknowledged the challenge of meeting the target, adding that neighboring Sudan has the requisite capacity to help South Sudan to increase production and also address logistical challenges.

"We hope that the steps that we will be taking to implement the resolutions of the meeting will take us to the next level where we will realize stable production and cooperation with Sudan," said Chuang.

Suleiman said that his country wants to benefit from crude oil in South Sudan to operate the El Obeid oil refinery.

The technical committee between the petroleum ministries of the two countries entered into three-day joint meetings in Juba to discuss ways of cooperation that would serve the interests of the peoples of the two countries.

Suleiman said the agreement signed will strengthen bilateral relations focusing on oil production and investment to help mitigate economic shocks in the two countries.

The two countries agreed to establish a joint company for seismic surveys, analysis and sharing of information.

They also said they will open a coordination office to facilitate engagement between the two ministries of petroleum.

Chuang said South Sudan is looking forward to benefiting from the Sudanese expertise in technical fields and training cadres by Sudanese oil experts. Enditem