South Sudan Discovers New Oil In Northern Region

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South Sudan has made a new crude find in the northern oilfields of Adar and plans production by the end of the year, Information Minister Michael Makuei Lueth said.

An exploration well near the Adar oilfield in Block 3 in the Melut Basin near the border with Ethiopia and Sudan penetrated reservoir quality Miocene sandstones after drilling to a total depth of 1,320 meters with more than 300 million barrels of recoverable oil, the country’s oil minister Awow Daniel Chuang said Tuesday.

The finds were discovered by a consortium led by China’s state-run CNPC, Dar Petroleum Operating Company. DPO is currently producing oil at any significant volumes in South Sudan.

DPO consists of China National Petroleum Corporation (41 percent), Petronas (40 percent), Nilepet (8 percent), Sinopec (6 percent) and Tri-Ocean Energy (5 percent).

“It will start as soon as they finish connectivity and the production will likely begin towards the end of this year,” Lueth said, without giving further details. “This is a new discovery and hence people will have to do so many things in order get to production. It needs a pipeline to connect it to the main pipe.”

Ruined by war, South Sudan is trying to recover by resuming crude production. Output has increased to 180,000 bpd from 130,000 bpd during its five-year civil war.

DPO has been producing about 185,000 b/d and the country plans to raise output to 200,000 b/d by 2020, Chuang said.

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