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War Worries Send Oil Prices Soaring

War Worries Send Oil Prices Soaring

Bullish sentiment has returned to…

South Sudan a Year Away from Full Oil Production

Officials in Juba, South Sudan, told media this week that it will take up to a year to restart full oil production due to damage caused to hydrocarbon infrastructure during clashes with Khartoum earlier this year.

Most of South Sudan’s oil production takes place in the Upper Nile state, though the lighter crude produced in the Unity state enjoys a higher price on the market. Both states border Sudan.

As far the Upper Nile facilities are concerned, South Sudan officials said full production could take up to six months to realize, with repairs set to take a year in Unity state.

Juba and Khartoum recently signed an oil transit agreement, which has been considered a major breakthrough since South Sudan halted exports in January this year. However, that deal will not be implemented until the two sides resolve their border disputes.

South Sudan has a production capacity of around 350,000 barrels per day.

By. Charles Kennedy of Oilprice.com

 



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