South Sudan oil industry facing difficulties

Posted: September 12, 2011 by PaanLuel Wël Media Ltd. in Economy

South Sudan oil industry facing difficulties
Tue Sep 13, 2011 2:4AM GMT
Hibatallah Morgan, Press TV, Juba

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South Sudan’s main source of wealth has hit bumps in the roads to stabilize and flourish the new state’s economy.

After gaining independence almost two months ago, some oil companies started facing problems that slowed down their function and the production of oil. The oil company of Petrodar in Palogue in South Sudan’s Upper Nile region was one of the companies that was not immune to the challenges.

The company of Petrodar’s challenges, which were apparently the challenges of many other oil companies, laid, however, in more than just stealing of wellhead cables.

This is the processing unit of the Field Processing Facility. This is where the oil is separate from water, sand and gas before it is taken to be refined.

The process of refining the oil is where the biggest challenge lies, as south Sudan, which is rich in oil and dependent on its revenue, does not have its own refinery, making it completely dependent on its neighboring Sudan to refine and export oil. And plans for building its own refinery seemed to be something that the Southern Sudanese ministry of petroleum says is far from accomplishing.

And Petrodar was not the only party that was facing problems. Citizens who lived less the five kilometers from the area had their own problems, completely different from that of the oil companies.

And with the people crying desperate pleas, the government seems to be lost between pleasing the companies that keep it afloat and fulfilling the desires of its citizens by developing the region where the oil fields lie and protecting their surrounding areas.

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