• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 day Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 4 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 15 hours CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 22 hours NordStream2
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 27 mins Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 5 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 5 days Modest drop in oil price: SPRs vs US crude inventory build
  • 1 day "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 days 2019 - Attack on Saudi Oil Facilities.

South Sudan Hits Peak Production As It Prepares For First Oil Auction

Time is running out for South Sudan, which is now preparing for its first oil auction, as officials reveal that the country’s four existing blocks have reached and passed peak production and are now in decline. 

 Ministry of Petroleum Undersecretary Awow Daniel Chuang told Bloomberg that Blocks 3 and 7 in Upper Nile have fallen to 103,000 barrels per day from an initial 120,000 bpd, while Blocks 1, 2 and 4 have dropped from 53,000 bpd to 48,000 bpd. 

Overall, crude oil production has declined from 185,000 bpd to 165,000 bpd. 

Currently, South Sudan has five producing blocks, operated by China National Petroleum Corporation (CNPC) India's Oil and Natural Gas Corporation and Malaysia’s Petronas. And last week, production at Block 5A was finally resumed after a 7-year pause, targeting a modest 8,000 bpd. 

Sudan’s first oil licensing auction launched on June 22nd and will offer up five blocks for licensing, but already, Petronas has reportedly indicated that it might not participate. Foreign investment is now make or break for South Sudan. 

Landlocked South Sudan could be a gold mine. It’s estimated that it’s 90% unexplored, but a five-year civil war took its toll, and delayed chances of new exploration and goals of returning to prewar production levels of up to 400,000 barrels per day.

In 2019, South Sudan--part of the non-OPEC group included in the OPEC+ production cuts--announced its first oil discovery as an independent nation, with 5.3 million barrels recoverable, but the pandemic has delayed progress.

“COVID-19 has been a challenge,” Chuang said, although there are other risks. “The unit production cost is very high, that’s a risk. If we’re unable to control the costs of production our profit oil will shrink, we need to address that. We need to ensure profit oil holds up, against cost oil.”

By Charles Kennedy for Oilprice.com 

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News