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JUBA - 18 Aug 2019

Government announces new oil discovery in Upper Nile

South Sudan's government on Friday announced a new oil discovery in Adar area of Upper Nile region.

Speaking to reporters after the cabinet meeting in Juba, Information Minister Michael Makuei said the minister of petroleum informed the Council of Ministers about the new petroleum discovery.

Makuei, who is also the government spokesman, said the layer of crude oil was discovered in Adar area of Northern Upper Nile State.” The minister of petroleum informed us that they have made oil discoveries in a place called Gasab in Adar area,” Makuei said.

He added that the production in the new area will start soon, without specifying the size of the discovery. “The production in the Paloch area will definitely increase,” he said.

Mr. Makuei’s announcement, however, fell short of disclosing the name of the oil firm that made the discovery.

The world’s youngest nation has one of the largest reserves of crude in sub-Saharan Africa. It plans to increase output to more than 350,000 barrels of crude per day by the middle of 2020, up from 180,000 barrels per day currently, according to official figures.

South Sudan’s oil sector is dominated by Asian companies including Malaysia’s Petronas, India’s Oil and Natural Gas Corporation (ONGC Videsh) and the China National Petroleum Corporation (CNPC).

According to earlier reports, the management of oil revenues and income from other natural resources in South Sudan has been characterized by a total lack of transparency and independent oversight.