The Dar Petroleum Operating Company is resuming oil production in South Sudan after the lifting of force majeure on the pipeline route through Sudan. This decision is based on improved security arrangements after a prolonged conflict in Sudan impacted oil flows. With South Sudan’s economy heavily dependent on oil revenues, this marks a pivotal recovery for the nation.
Dar Petroleum Operating Company (DPOC), recognized as the largest oil operator in South Sudan, is set to recommence oil production effective January 8, 2025. This decision follows the lifting of force majeure on the pipeline route through Sudan, which was announced by South Sudan’s Minister of Petroleum, Puot Kang Chol. This lifting comes after Sudan established new security arrangements enabling oil flows from landlocked South Sudan to Port Sudan on the Red Sea. The force majeure had been in place for ten months due to significant disruptions caused by armed conflict and major pipeline ruptures. The conflict in Sudan, which started in April 2023, has severely impacted South Sudan’s oil export capabilities, making this resumption a critical development for the nation’s economy.
South Sudan relies heavily on oil exports, which account for approximately 90% of its government revenue. The country typically routes its crude oil through Sudan, but conflicts in the region have led to significant challenges, including the cessation of oil exports. The extended force majeure had stemmed from adverse security conditions and physical damages to the critical pipeline infrastructure meant for transporting oil to export markets. The return of oil production is not only vital for South Sudan’s economy but is also indicative of improving security dynamics in the region.
The resumption of oil production by Dar Petroleum Operating Company is poised to bolster South Sudan’s economy by reinstating a crucial revenue stream that had been severely affected by geopolitical instability. This development marks a significant step towards recovery following months of disruptions caused by the conflict in Sudan. Enhanced security measures and the lifting of force majeure signify a hopeful return to stability and operational normalcy in the oil sector.
Original Source: oilprice.com
