The Citizen (Juba)

South Sudan: Following Approval, Minister Orders Resumption of Oil Production

Juba — The Minister of Petroleum and Mining Stephen Dhieu yesterday ordered for resumption of oil production after the Council of Ministers and National parliament ratified cooperation agreement signed in Addis-Ababa late last month.

The Minister instructed Foreign Oil Companies, party to Transition Agreement, operators carrying out crude oil production, processing and transportation in and from contract areas located in South Sudan, to resume the production of crude oil within the country.

Dhieu in orders seen by The Citizen said that the foreign oil companies and pipeline operators operating in South Sudan are ordered and instructed forthwith to recommence and re-establish the production of crude oil and petroleum operations within the producing block, 1, 2, 4, 7, and 5A, to resume any and all petroleum operations.

The Minister indicated that except for any crude oil now or in the future dedicated or reserved for use, processing or resumption domestically in South Sudan the processing and the transportation of such crude oil through the GNPOC and Petrodar Transportation Systems should commence at once.

The Minister further assured that the implementation of the oil resumption order all companies, and operators shall act as "reasonable and prudent operators", having regard to the best practices of the international oil industry.

The oil companies and operators should protect the environment and the interest of local communities, and the laws and the regulations of South Sudan, the Minister asserted.

He reaffirmed that in resumption of crude oil production, petroleum operations and transportation shall be carried out immediately in accordance with the terms of the Transition Agreement and the directions and instructions provided by the technical staff of the Ministry of Petroleum and Mining.

The Minister furthermore directed Foreign Oil Companies and Pipelines Operators to take immediate steps to implement this oil resumption order, and all are directed and ordered to meet in Juba and coordinate with the Ministry officials.

The Minister also issued an order reserving the right to take such additional orders and directions from time to time to effectuate, amend, vary or affect this order, and to suspend or terminate in the future.

The Minister assured guarantee of South Sudan oil transport safety through Sudan facilities, since there is an agreement reached by two sides which will be abiding document, witnessed by other third parties.

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