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South Sudan to Resume Oil Production


South Sudan's oil infrastructure
South Sudan recently shuttered its oil production

South Sudan will resume oil production especially the Upper Nile in September, Sudan’s lead negotiator at the African Union Pegan Amum has said.

South Sudan and Sudan reached an agreement on issues related to oil transit fees recently during their talks mediated by the African Union High Level Implementation Panel (AHUIP) in the Ethiopian capital, Addis Ababa paving the way for a solution to fighting between the two countries.

The two parties have also agreed to set up a joint delegation that will negotiate South Sudan’s offer to cancel Sudan’s $3 billion debt in addition to direct financial assistance over the next three years.


According to the Ethiopian Ministry of foreign affairs, Pagan said resuming oil production “will not just be an automatic thing. It will take time to open one well after the other.”

Production is expected to start with 150,000 barrel per day (bpd) and increase to between 180,000 and 190,000 within three to four months.

Pagan also suggested that production could increase well beyond recorded levels prior to the shutdown within a year.

The two countries will resume their talks on August 26 to resolve the remaining issues.

The AU Peace and Security Council agreed that the negotiations on all outstanding matters should be concluded by September 22.

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