South Sudan’s Petroleum Minister, Ezekiel Lol Gatkuoth, said that the country plans to establish a new oil facility in Palouch oilfields in October, with the aim of amplifying daily production in the country, Agence Ecofin reported.
Dar Petroleum Operating Company will manage operations in the new oil facility, as the company has been managing the production of oil in Palouch of Unity state since the signing of Sudan’s 2005 peace deal, according to Sudan Tribune.
Gatkuoth added that even though production was stopped because of the conflicts, oil workers in the region were safe ahead of plans to restart production in the Unity State. Furthermore, neighboring Sudan recently agreed to help South Sudan and its oil companies in repairing damages caused by war in order to allow quick resumption of production at its oil wells.
South Sudan is one of Africa’s top oil producers but the country still lacks an oil refinery, making transportation very expensive. Revenues from oil account for 98% of South Sudan’s annual budget.