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South Sudan oil production down to 165,000 bpd: ministry
An oil worker turns a spigot at an oil processing facility in Palouge oil field in Upper Nile state, February 21, 2012. PHOTO BY REUTERS/Hereward Holland
By Denis Dumo
22/05/2015
JUBA (Reuters) - South Sudan's oil production has dropped to 165,000 barrels per day from between 168,000 and 169,000 barrels per day in January, petroleum and mining minister Stephen Dhieu Dau said, citing technical reasons as opposed to fighting in oil producing areas.
Production has been slashed by about a third since fighting broke out in the world's newest state in December 2013, with many South Sudanese oil wells damaged and output in decline at functioning fields due to a dearth of spare parts.
There has been heavy fighting in recent days in oil producing areas in Upper Nile state, and the latest incidents were witnessed in Melut and near the country's main Paloch oilfield.
“As you may be aware, there was a security incident recently in some areas around block three and seven, which is located in Melut county, upper Nile state," Dau told a news conference.
“As of today, the oil production figure is 165,000 barrels per day. You will observe that before we were producing 168,000 sometimes 169,000, but for another technical reason not because of security it has reduced by 3000," he said.
Dau said plans were underway to assess the status of oilfields and facilities in block 5A, Tharjath, in Unity state with the aim of resuming oil production.
Early this week rebels asked oil company workers in Paloch to leave, warning of an impending attack. They had also said they had taken control of the site of a refinery under construction, which the government has denied.
Dau said that both Melut and Paloch were in government control, but referred all security-related questions to the military.
“Ministry of Petroleum and Mining would like to reassure the foreign oil partners, joint operating companies and the citizens of the South Sudan that the block three and seven oilfields are safe and secure and therefore, the operations continue normally," he said.
South Sudan relies almost exclusively on oil for government funds. Last year oil revenues were hit by a decline in output and falling oil prices on global markets.
Violence erupted over political tension between President Salva Kiir and his sacked deputy and rival, Riek Machar when Kiir accused Machar of plotting a coup.
The fighting has killed more than 10,000 people, caused more than 1.5 million to flee and driven the country of 11 million closer to famine.
(Reporting by Denis Dumo; Writing by George Obulutsa; Editing by Greg Mahlich)
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