The South Sudanese government and key oil firms have announced the resumption of oil production and export.

In a joint statement on Tuesday, the Petroleum Ministry and oil companies said that operations have started in Blocks 3 and 7 in Upper Nile State after the lifting of a force majeure by Sudan’s government and the Basher Pipeline Company (Bapco).

“The reference is made to the kick-off date of operation and production resumption in Dar Petroleum Company (DPOC) Block three and seven. And the letter from South Sudan’s Ministry of Petroleum (MoP) and Bapco pertaining [to] the lifting of Force Majeure that was declared in February 2024 and the indemnity letter issued [by] MoP and coordinated task force formed by the parties,” the statement read.“In this regard, the Ministry of Petroleum and partners are hereby directing DPOC to kick start the resumption of crude oil production and operation as early as 8th of January 2025.”Petroleum minister Puot Kang said the initial output target is 90,000 barrels per day for the two blocks.

Sudan at the weekend lifted a nearly yearlong blockage on the transportation of crude oil from South Sudan to Port Sudan on the Red Sea, citing improved security conditions.

South Sudan’s economy has faced significant challenges in recent years, grappling with communal violence and a reduction in vital crude oil export revenues due to disruptions caused by ongoing war in the north.

Before the conflict in Sudan, Juba had been producing 150,000 barrels of crude oil per day, which was exported through Sudan under a formula established after South Sudan gained independence in 2011.

The conflict in the north has also resulted in South Sudan becoming the second-largest recipient of people fleeing the war, with more than 810,000 new arrivals since April 2023. These include returning South Sudanese refugees, who had sought shelter in Sudan, as well as refugees and asylum seekers from other countries.

More than half of these refugees are being hosted in the Maban region, while another 135,000 have settled in the Ruweng Administrative Area. A growing number are also relocating to urban areas, creating both opportunities and challenges for their integration into local economies and communities.

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