South Sudan cuts oil output estimate to 190,000 bpd due to clerical error

JUBA (Reuters) - South Sudan revised down its crude oil output estimate by 50,000 barrels per day (bpd) to 190,000 bpd, petroleum minister Stephen Dhieu Dau said on Tuesday, after a clerical error.

The government, which is struggling to build up effective state institutions and infrastructure after decades of civil war with Khartoum, put out the higher figure two weeks ago.

"There was a tabulation mistake. This is the correct number," oil ministry spokesman Nicodemus Ajak Bior told Reuters by phone.

Landlocked South Sudan agreed with Sudan in March to restart crude exports through the north, its only access to markets. Sudan had threatened in June to close two export pipelines after it accused South Sudan of supporting rebels in its territory but they defused the row last month at a summit.

South Sudan pumped 300,000 bpd until it closed all wells in January 2012 in a row over pipeline fees with Khartoum. It hopes to lift production to 250,000 bpd this year, the ministry said last month, but reopening hundreds of wells has proved challenging, especially because some oilfields were damaged during weeks of border skirmishes between in April 2012.

Dau told reporters at a news conference to announce a mining cooperation deal with the Australian government that 160,000 bpd of the new crude total would come from fields in Upper Nile state, which produce heavy sour Dar Blend, South Sudan's main crude. The rest is from Unity, where output is mixed to produce light sweet Nile Blend.

He said Australia was helping South Sudan to finalise legislation to hand out mining licence for gold, copper and other minerals.

Australian Ambassador to South Sudan, Geoff Tooth, said South Sudan's mining sector was highly attractive. "Australia has a lot of good mining companies and a lot who will be very interested in investing here," he said.

Industry experts say it will take time to develop the sector as no systematic mapping exists due to the long conflict with Sudan and a lack of infrastructure.