Sunday December 10, 2017

Unity State oil production to restart this month

Soldiers patrol an oil field in Paloug, in South Sudan's Upper Nile state. Credit: Jared Ferrie/IPS
Yoal Manyang


JUBA – Unity state Caretaker Governor has reaffirmed has government commitment to secure the oil installation and says work is ongoing to resume oil production in the oil fields and the production will commence at the end of this month. South Sudan’s oil production is steady at about 160,000 barrels per day and will take time to recover to previous levels, an oil ministry official said, after oil facilities in Unity state were burned in fighting between political factions.
Dr. Joseph Nguen Monytuil caretaker governor of Unity state, said during an interview with eye Radio in Juba that workers from the Ministry of Petroleum and Mining and the oil companies are fixing parts of the oil wells that were destroyed during the fighting.
“We must make sure that this oil is being produced, and our people have very high expectation in the development. So, for us to provide those requirements of our people we need to have resources and -these resources come from oil.” Governor said. 
Dr. Monytuil said that the production may resume at the end of the month and the security situation at the oil field has been beefed up.
“The security situation is good, and we have secured all the oil fields and there is no threat at all,” he said.
Dr. Joseph Monytuil said the Chinese and Malaysian oil companies are still operating in the oil fields.
Oil companies evacuated Unity state after fighting start in Bentiu. The firms have yet to resume operations, however, while the government struggles to ensure security and to assess the damage. 
Upper Nile fields produce Dar blend crude, which is a heavy and sour blend. The lighter and sweeter Nile blend produced from the Unity fields tends to sell at a premium to Dar.
The two blends usually go to Chinese and Indian refiners, which can process a variety of crudes. Some Nile blend is also shipped to Japan where it is burned by utilities.
Any variation in production of South Sudan’s crudes can impact the price of some other grades such as Indonesian, Angolan and some Australian crudes.
All of South Sudan’s exports run via a pipeline through port Sudan to the Red Sea. South Sudan split from Sudan in 2011, and the two nations have often argued since then over oil transit fees, border security and other issues. 
The Upper Nile Times
Yoal Manyang
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