South Sudan has secured a critical agreement with joint oil operating companies to intensify exploration and drilling in promising oil fields, as part of a national strategy to revive its struggling economy through increased crude production.
The agreement was finalized at a high-level meeting in the capital, Juba, chaired by Vice President and Chairperson of the Economic Cluster, Benjamin Bol Mel. The session brought together senior officials from the Ministry of Petroleum and executives from oil firms operating in the country.
Deng Lual Wol, Undersecretary at the Ministry of Petroleum, disclosed that the talks focused on short- to medium-term strategies for enhancing oil production. “We resolved to establish a joint task force between the Ministry and operating companies to expedite maintenance and rehabilitation of critical oil fields to raise output,” Wol said.
Other key outcomes of the meeting include commitments to increase local content, invest in workforce development, and introduce modern technologies to tackle high water cuts and sand accumulation in oil wells which challenges that have hampered production efficiency.
Wol also confirmed the continuation of operations in Blocks 3 and 7, located in the Upper Nile region, which resumed production in January. These blocks are expected to maintain initial output levels of around 90,000 barrels per day, with potential for scaling up. The production sharing agreements on these fields were due to expire in 2027, but new commitments have secured their extension.
Dar Petroleum Operating Company , a consortium that includes South Sudan’s state-owned Nile Petroleum Corporation and international partners, manages the two blocks. Despite ongoing regional instability, particularly the conflict in neighboring Sudan, the government has assured stakeholders of continued operational support. The war had previously led to the exit of Malaysian oil giant Petronas, citing operational difficulties.
South Sudan’s renewed focus on oil underscores its reliance on the resource, which accounts for nearly all of the country’s export earnings. With the new agreements in place, the government hopes to stabilize revenues, strengthen national capacity in the oil sector, and lay the foundation for long-term economic recovery.
