News / Africa

South Sudan Set to Resume Oil Exports

  • South Sudan's Minister for Petroleum and Mining Stephen Dhieu Dau (L) prepares to press button to resume oil production May 5, 2013, Paloch, South Sudan
  • A South Sudanese man beams during a celebration to mark the resumption, after a 16-month break, of oil production at Paloch oil field on Sunday, May 5, 2013.
  • Pipelines criss-cross at the Paloch oil field in South Sudan on Sunday, May 5, 2013, when production resumed at the facility after a 16-month break.
  • South Sudanese Minister for Petroleum and Mining Oil Minister Stephen Dhieu Dau pushes a button Sunday, May 5, 2013, to resume production at the Paloch oil field in Upper Nile state, after a 16-month hiatus.
  • South Sudanese Oil Minister Stephen Dhieu Dau cuts the ribbon at Paloch oil field, where hydrocarbon production resumed on Sunday, May 5, 2013, after a 16-month break.
  • South Sudanese celebrate the resumption of oil production at Paloch oil field, the new nation's largest facility, on Sunday, May 5, 2013.
Production Resumes at South Sudan's Paloch Oil Field
Hannah McNeish
South Sudan says it has resumed one-third of its oil production, which it shut down last year, and will export its first cargo next month.

Oil Minister Stephen Dhieu Dau pushed a button Sunday to resume production at the new nation’s main oil field in Upper Nile state.

“This is really a great day for the people of South Sudan.  The official resumption of production in Paloch oil field, and we will be pushing the oil from South Sudan to the pipeline in South Sudan within two weeks, we are expecting it,” Dau said.

Black smoke billowed into the bright sky, signaling the restart of pumps that have lain dormant since January 2012, when a dispute with Sudan over transit fees led the South to halt production.  Weeks of border fighting followed, threatening to bring the two sides back to all-out war.

But a deal was reached in March for South Sudan to pay around $10 per barrel to export via the north.  South Sudan resumed production last month in neighboring Unity state with just 8,000 barrels per day production.

Dau said 180,000 barrels from Paloch should be flowing by next month and be exported from Port Sudan.

“So in the third week of June, we will be lifting the first cargo in Port Sudan, so thank you and I would like to congratulate the people of South Sudan,” Dau said.

Dar Petroleum Operating Company president Joseph Potdung said that after a painful wait, the Chinese-Malaysian-Indian consortium was pleased to be back in business.

“This is the biggest producing oil field in South Sudan and our success in terms of the resumption, will surely bring a lot of benefit as well as make a lot of difference to the people of this nation,” Potdung said.

South Sudan’s Justice Minister John Luk Jok said the months of negotiations with the north were difficult, but the resumption meant peace and prosperity on both sides.

“It was not easy.  It took us quite a long time, to negotiate with Khartoum, or Sudan, in order to agree that we can still balance economic relations with Khartoum for the mutual advantage of both countries,” Jok said.

Oil revenue provides 98 percent of South Sudan's revenue and Finance Minister Kosti Manibe said until the oil money refills the state’s empty coffers, there will be a freeze on spending.

“We are just about the seeing the end of austerity measures, some of you call it “Kosterity,” that corner is still, we have not yet turned it.  I will not tell you here how far away it is, I will do that only when the money has come back,” Manibe said.

Other officials urged the oil companies to provide more environmental and social benefits to the surrounding communities, while pledging revenues would trickle down to the people.

You May Like

Turbulent Transition Imperils Tunisia’s Arab Spring Gains

Critics say new anti-terrorism laws worsen Tunisia's situation while others put faith in country’s vibrant civil organizations, women’s movement More

Burundi’s Political Crisis May Become Humanitarian One

United Nations aid agencies issue warning as deadly violence sends tens of thousands fleeing More

Yemenis Adjust to Life Under Houthi Rule

Locals want warring parties to strike deal to stop bloodletting before deciding how country is governed More

This forum has been closed.
Comment Sorting
Comments
     
by: James Ruei Majok from: Unity state Bentiu.south
May 07, 2013 5:59 AM
yesterday is aworderfull day to us we people of Republic of south sudan for the reopening of oil in Upper nile state .we are nearly to get benifit very soon we people of Republic of south sudan.iam afeeling to my goverment to keep the oil money as they may know that it is the concern of every citizens of south sudan across all ten states of republic of south sudan.thank to Mr MINISTRY .

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Texas Town Residents Told to 'Just Leave' Ahead of Flood Threati
X
Greg Flakus
May 29, 2015 11:24 PM
Water from heavy rain in eastern and central Texas is now swelling rivers that flow into the Gulf of Mexico, threatening towns along their banks. VOA’s Greg Flakus visited the town of Wharton, southwest of Houston, where the Colorado River is close to cresting.
Video

Video Texas Town Residents Told to 'Just Leave' Ahead of Flood Threat

Water from heavy rain in eastern and central Texas is now swelling rivers that flow into the Gulf of Mexico, threatening towns along their banks. VOA’s Greg Flakus visited the town of Wharton, southwest of Houston, where the Colorado River is close to cresting.
Video

Video New York's One World Trade Center Observatory Opens to Public

From New Jersey to Long Island, from Northern suburbs to the Atlantic Ocean, with all of New York City in-between.  That view became available to the public Friday as the One World Trade Center Observatory opened in New York -- atop the replacement for the buildings destroyed in the September 11, 2001, attacks.  VOA’s Bernard Shusman reports.
Video

Video Seoul Sponsors Korean Unification Fair

With inter-Korean relations deteriorating over the North’s nuclear program, past military provocations and human rights abuses, many Koreans still hold out hope for eventual peaceful re-unification. VOA’s Brian Padden visited a “unification fair” held this week in Seoul, where border communities promoted the benefits of increased cooperation.
Video

Video Purple Door Coffeeshop: Changing Lives One Cup at a Time

For a quarter of his life, Kevin Persons lived on the street. Today, he is working behind the counter of an espresso bar, serving coffee and working to transition off the streets and into a home. Paul Vargas reports for VOA.
Video

Video Modular Robot Getting Closer to Reality

A robot being developed at Carnegie Mellon University has evolved into a multi-legged modular mechanical snake, able to move over rugged surfaces and explore the surroundings. Scientists say such machines could someday help in search and rescue operations. VOA’s George Putic reports.
Video

Video Shanghai Hosts Big Consumer Electronics Show

Electronic gadgets are a huge success in China, judging by the first Asian Consumer Electronics Show, held this week in Shanghai. Over the course of two days, more than 20,000 visitors watched, tested and played with useful and some less-useful electronic devices exhibited by about 200 manufacturers. VOA’s George Putic has more.
Video

Video Forced to Return Home, Afghan Refugees Face Increased Hardship

Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Britain Makes Controversial Move to Crack Down on Extremism

Britain is moving to tighten controls on extremist rhetoric, even when it does not incite violence or hatred -- a move that some are concerned might unduly restrict basic freedoms. It is an issue many countries are grappling with as extremist groups gain power in the Middle East, fueled in part by donations and fighters from the West. VOA’s Al Pessin reports from London.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video Al-Shabab Recruitment Drive Still on In Kenya

The al-Shabab militants that have long battled for control of Somalia also have recruited thousands of young people in Kenya, leaving many families disconsolate. Mohammed Yusuf recently visited the Kenyan town of Isiolo, and met with relatives of those recruited, as well as a many who have helped with the recruiting.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.

VOA Blogs