South Sudan tells oil majors to ramp up exploration, drilling activities
By Denis Ejulu
South Sudan’s government on Thursday said it reached agreement with joint oil operating companies (JOCs) to ramp up exploration and drilling activities in prospective oil fields, as the country aims to increase production to shore up it’s struggling economy.
Undersecretary in the ministry of petroleum, Deng Lual Wol, said that this was arrived at during a meeting between the vice president for economic cluster, Benjamin Bol Mel with officials of the ministry of petroleum and the heads of the joint operating companies in Juba, the capital of South Sudan.
Speaking to journalists, Wol disclosed the meeting discussed strategies of enhancing crude oil production in the short- to- medium term.
“The key resolutions made includes formation of taskforce comprising ministry of petroleum, joint operating companies to fast track the maintenance and rehabilitation of key oil fields to improve on oil production,” Wol said.
Other resolutions include enhancing local content and workforce development to build national capacity within the oil sector, aggressive exploration activities such as drilling all the potential prospects near the development areas, deploying new technology to address the issues of high water cut and sand production in the oil and gas wells.
In January, 2025, South Sudan’s ministry of petroleum announced resumption of oil production in block 3 and 7 located in Upper Nile, aiming to produce initially 90,000 barrels a day before increasing output.
Wol revealed that the agreement has also guaranteed continuous production in block 3 and 7, whose production sharing agreements (PSAs) were set to expire in 2027.
“We have reached an agreement with the partners to continue operating in South Sudan,” he said.
The ongoing war in neighboring Sudan has disrupted oil production, forcing Malaysian oil giant PETRONAS to exit the oil sector due to operational challenges.
PETRONAS has sued the South Sudan government at the International Centre for Settlement of Investment Dispute for blocking the sale of its local assets worth $1.25 billion following the government’s decision allowing state-owned NILEPET take over the assets of the Malaysian firm.
Block 3 and 7 are operated by the Dar Petroleum Operating Company (DPOC), a consortium that includes China National Petroleum Corporation (CNPC), PETRONAS and state-owned Nile Petroleum Corporation Limited (NILEPET).
