South Sudan might cut oil production

JUBA, South Sudan, Nov. 30 (UPI) — South Sudan might be forced to stop producing oil because storage capacity is limited, a minister said after Sudan blocked oil exports from its neighbor.

Khartoum this week said it wasn’t going to export the 200,000 barrels per day produced by South Sudan, forcing China to step into the regional embargo.

Beijing called on the Sudanese government to end the blockade since it is the largest buyer of crude oil from the region and the move affected its tankers first.

“Maintaining normal production of oil is important to both South Sudan and Sudan,” Chinese Foreign Ministry spokesman Hong Lei was quoted by the Financial Times as saying. “We hope north and South Sudan can stay rational, show restraint and resolve relevant problems through neighborly pragmatism and friendly talks.”

Energy analysts told the Financial Times that although crude oil from the region represents only a fraction of the oil market, supplies are strained as markets try to recover from outages from the war in Libya and declining output from Syria.

Arkangelo Okwang, an energy official in South Sudan, told the Financial Times further action from Khartoum might force his country to cut output because its own storage capacity is limited.

“That will be a disaster if we are forced to stop production,” he was quoted as saying.

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PaanLuel Wël

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PaanLuel Wël is the founder and editor-in-chief of PaanLuel Wël Media Ltd, a news website that covers news, opinions, analysis, history, culture and literature of South Sudan and the world. Founded in July 2011 by PaanLuel Wël to create a platform for free expression and constructive dialogue, the website features articles from various contributors, including columnists, commentators, poets, authors, activists and academics. PaanLuel Wël believes that media can play a vital role in informing, educating and empowering the people to participate in nation-building and social transformation. He also believes that media can foster a culture of dialogue, tolerance and diversity among different communities and groups, and hopes to inspire and mentor the next generation of South Sudanese writers and journalists.

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