The North-South divide: South Sudan petroleum and mining ministry declares $3.5 billion profits in one year
A total of $3.5 billion was realised by South Sudan from its crude oil sales between June 2013 and May this year, the country's petroleum and mining ministry announced. A statement signed by petroleum minister, Stephen Dhieu Dau, said only half of the revenues generated reached the new nation's coffers after payments of load and proceeds to the Sudanese government, as pipeline charges, were made.
“The net amount realized by the Government of the Republic of South Sudan after payments or settlement of loan is $ 1,887 million (only one billion eight hundred eighty seven million US Dollars),” partly reads the statement extended to Sudan Tribune. "Proceeds to Sudan amounts to US $857 million and loan settlements took $788 million" it adds.
SLUMP IN OIL PRODUCTION
South Sudan's government admitted on Sunday that ongoing conflict has affected the country's oil production, which now stands at just 165,000 barrels per day. Petroleum minister Dau, told Sudan Tribune that the country had continued to receive revenues from the oil produced in Upper Nile state, where production rate is reportedly on the decline since no additional explorations takes place in the area.
“The oil production is continuing in Upper Nile. The current output is not bad, but there is a drop. At the moment the level of output stands at 165,000 barrel per day from 245,000 barrels per day before the current crisis erupted last year", said Dau. "This [oil] is produced in Paloch", he further added.
The minister, however, commended government troops for providing protection and defense to the country's only remaining oil wells, despite several attempts by rebels to control it. “There is no problem around production area at the moment. There is enough production by the SPLA [Sudan People's Liberation Army] forces to the oil workers.
They are secured”, said minister Dau. "The army in the area are doing [a] commendable job in defend of the country, its constitution and the resources of the people”, he stressed. Prior to South Sudan's July 2011 secession from Khartoum, oil production generated millions of dollars and accounted for at least 98 percent of the young nation's budget.
Till now, however, South Sudan's oil is exported through Sudanese pipelines and this generates revenues, which are economically significant for the Khartoum government.
- Oman’s Duqm tourist complex moves forward with government approval
- Kuwait fights budget deficit: Reexamining government salaries, expatriate labor
- Tunisian Confederation of Industry, Trade, and Handicrafts fights nationwide unemployment levels
- Construction costs fall in Dubai
- Western tourists flock to Iran, could generate $30B in new revenue