South Sudan: Operational Challenges Hamper Daily Output Increase Plans

The South Sudanese government had announced its ambition to raise its crude oil production by 2024. However, operational challenges have compromised the achievement of this goal. South Sudan will ......

(SputnikNews)

 

(Ecofin Agency) - The South Sudanese government had announced its ambition to raise its crude oil production by 2024. However, operational challenges have compromised the achievement of this goal.

South Sudan will delay its plan to increase daily oil production target, a source close to the government informed on July 14, citing operational challenges. The country initially planned to raise its daily production to 230,000 barrels by the end of 2024. This plan is likely postponed to 2026.

The decision to postpone the target stems from two primary factors. First, South Sudan has faced operational difficulties due to severe flooding, resulting in significant logistical challenges. The recent floods caused a decline in oil production, highlighting the impact of these weather events on the industry. Second, the lack of investment in the oil sector has hindered the country's ability to meet production targets.

In response to these challenges, South Sudan's authorities are reevaluating their strategy. Their long-term goal is to attract investors and raise oil production to 450,000 b/d, supporting the state's oil policy.

In the short term, the government aims to maintain stable oil production. However, achieving this objective poses challenges due to the political instability in neighboring Sudan, which is key to South Sudan’s oil exports.

Abdel-Latif Boureima