China National Petroleum Corporation’s Dar Petroleum Operating Co. has resumed oil production from several wells in South Sudan after nearly a year of inactivity, according to sources familiar with the matter.
This was announced on Thursday by insider sources familiar with the matter, according to a recent report by Bloomberg.
The company, operated by China National Petroleum Corp., China Petroleum & Chemical Corp., and state-owned Nile Petroleum Corp., has reopened four batches of wells.
This decision comes in response to the South Sudanese government’s directive on January 7, 2025, calling for the resumption of oil production.
Three-quarters of South Sudan’s total crude output originates from Blocks 3 and 7 in Upper Nile State. These blocks were shut down a year ago after Sudan’s Ministry of Energy and Petroleum declared force majeure on its pipeline on January 4, 2025. This action disrupted crude exports, which serve as South Sudan’s largest revenue source.
The force majeure was imposed in March 2024 due to damage inflicted on the primary pipeline by the civil war between Sudan’s army and the Rapid Support Forces (RSF). However, the restriction was lifted in January 2025, paving the way for production to restart.
Oil Minister Puot Kang Chol stated last month that South Sudan, which gained independence from Sudan in 2011 but remains reliant on its northern neighbor for access to ports, refineries, and pipelines, aims to ramp up crude output to 90,000 barrels per day within six months of the restart.
South Sudan currently produces approximately 150,000 barrels of crude oil per day, which is transported through Sudan under agreements established following its independence.
In a bid to sustain its oil exports amid ongoing regional instability, South Sudan’s Ministry of Petroleum issued a tender in December 2024, offering January crude cargoes.
With the resumption of production and export activities, South Sudan seeks to stabilize its oil-dependent economy despite the challenges posed by geopolitical tensions in the region.
