South Sudan’s newly-appointed finance minister urges increase in oil production

JUBA – South Sudan’s newly appointed Minister of Finance and Planning, Awou Daniel Chuang on Tuesday called on the Ministry of Petroleum to increase oil production from the current 150,000 barrels per day to 300,000 barrels per day.

“The Ministry of Petroleum must convince the International Oil Partners (CNPC of China, PETRONAS of Malaysia and ONGC of India) Diplomatically to increase oil production in 90 (ninety) days from the current state of 150,000 barrels a day to 300,000 barrels per a day or more,” Chuang said during his reception on Tuesday in Juba.

Chuang said the aim to increase oil production was disrupted by the conflict in Sudan, adding that the Sudan issue should be tackled through backdoor Diplomacy to engage the main players in the Sudan conflict to end the fighting.

“The issue of Sudan should be tackled too using backdoor Diplomacy to engage the main players in the war of Sudan. The main players are Gen. Mohamed Hamdan Dagalo (Hemetti) and Gen. Abdel Fattah Al Burhan to be engaged,” he said.

Sudan has declared force majeure on South Sudan crude oil exports after a rupture in the country’s export pipeline in a conflict zone.

“Force majeure” is a legal clause that allows parties to be released from contractual obligations when circumstances beyond their control arise, such as natural disasters or war.

Sudan, which has been in a deadly civil war since April last year, has transportation obligations for South Sudan’s oil.

In a Friday letter to companies involved in transporting South Sudanese oil, Sudan’s Energy and Petroleum Minister Mohieldin Naim Mohamed said the pipeline rupture prompted the suspension of crude oil exports through Port Sudan.