Faith Nyasuguta
South Sudan has taken a pivotal step towards economic recovery by restarting oil production in Blocks 3 and 7 of Upper Nile State. Operations resumed on Wednesday, January 8, 2025, following the lifting of a force majeure imposed by Sudan’s government and the Basher Pipeline Company (Bapco) due to prolonged conflicts in the region.
Before the disruptions caused by civil unrest, South Sudan produced approximately 150,000 barrels of oil per day, making the sector the backbone of its economy. However, years of instability slashed production and severely strained the country’s finances. Oil revenues account for nearly all of South Sudan’s national budget, underscoring the critical role the sector plays in funding infrastructure, healthcare, and education.
The resumption of operations begins with an initial production target of 90,000 barrels per day, with plans to gradually scale up as stability improves. This move has been hailed as a significant milestone, offering a lifeline to the economy and signaling a return to growth after years of economic challenges.
International stakeholders have also welcomed this development. Investors and development partners view it as an opportunity for South Sudan to stabilize its economy, attract further investments, and create job opportunities, particularly in oil-dependent regions. Successful operations in Blocks 3 and 7 could pave the way for enhanced exploration and development in the oil sector, fueling long-term growth.
However, South Sudan’s journey is far from over. Ensuring transparency and accountability in the management of oil revenues will be critical to achieving sustained economic recovery. The government faces the dual challenge of rebuilding infrastructure and maintaining peace and security to safeguard progress.
Contextually, South Sudan’s reliance on oil dates back to its independence in 2011. Despite inheriting nearly three-quarters of Sudan’s oil fields, the landlocked country depends on Sudanese pipelines and ports to export crude oil. This dependency, coupled with persistent conflict, has frequently disrupted production.
The restart of oil production marks a hopeful turn in South Sudan’s economic narrative. By prioritizing peace, effective governance, and resource management, the country has a chance to leverage its oil wealth to improve living standards and achieve long-term stability. Continued support from the international community will be vital in helping South Sudan fully realize this potential.
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