South Sudan’s oil industry has been affected by continued armed fighting, trade disputes and low oil prices, causing reduced investments in the region, according to GlobalData
GlobalData analyst, Jonathan Markham, reported that production in South Sudan was around 240,000 barrels per day (bpd) at the end of 2013, prior to the start of the conflict but this is to have dropped to around 165,000 bpd in 2014.
According to Markham, South Sudan is currently generating around US$100mn in profit per month from oil exports, which is an estimated 90 per cent of the government’s income. GlobalData forecast that 2015 production will continue to fall as a result of the recent conflict escalation around the oil regions.
“Neither government nor rebel forces are in full control of the locations in key oil regions. Ineffective ceasefire agreements and declining oil exports mean operations in South Sudan will continue to be affected in the short to medium term,” said Markham.
Damage to infrastructure will set the country back at least seven years, with production not expected to return to 2013 levels, of approximately 240,000 bpd, until 2020, added Markham.