South Sudan talks to Halliburton to boost oil production
Oct 28 (Reuters) – New African oil producer South Sudan wants to boost oil production by applying better technology with the help of foreign firms and by making new discoveries, a senior government official said on Friday.
South Sudan took 75 percent of Sudan’s 500,000 barrels per day of oil production when it became independent in July, breaking away from its former civil war foe Khartoum.
The country produces about 300,000 bpd but oil industry sources say inefficient technology means much of the pumped oil gets lost.
Kosti Manibe Nga, minister of finance and economic planning, said South Sudan has held talks with U.S. firm Halliburton to boost recovery rates from wells to up to 40 percent from 23-25 percent currently.
“Yesterday, I was talking to Halliburton … exploring whether it would be possible to increase our production rates here, and according to them it can be done, to move to 36-40 percent,” he told an oil conference in the capital.
The International Monetary Fund (IMF) said this week that South Sudan’s oil production is expected to halve by 2020 unless new discoveries are made.
“The declining production makes it very important that oil companies do their utmost to increase production from current blocks but also explore new areas,” the minister said.
South Sudan has been trying to make new oil discoveries in the remote south-east of the country, which is roughly the size of France, but tribal and rebel violence has hindered efforts.
http://www.reuters.com/article/2011/10/28/sudan-south-oil-idUSL5E7LS3K420111028
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