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South Sudan set to resume oil production in block 5A
Last year, petroleum minister Awow Daniel Chuang of South Sudan announced that the country will resume the oil production in Block 5A and add more than 15,000 barrels to the current daily crude output of 178,000 barrels. The country sets to start oil production by the end of this year. South Sudan has made progress on Interstate highway after signing an agreement with Shandong Hi-Speed Group last year to build a 392-kilometer highway that will run northwards from the capital city Juba. Political and Economic Affairs Analyst, Akol Dok, joins CNBC Africa for more on this.
Thu, 11 Jun 2020 05:58:51 GMT
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AI Generated Summary
- The resumption of oil production in Block 5A is set to add over 15,000 barrels to South Sudan's daily crude output, contributing to increased revenue and funding for development initiatives.
- The construction of a 392-kilometer interstate highway project from Juba is expected to improve connectivity, boost trade opportunities, and enhance the logistical landscape of the country.
- The highway project holds the potential to transform South Sudan into a non-oil economy by creating market access for agricultural products and diversifying the country's economic base.
South Sudan is on the brink of a major economic revival as the country gears up to resume oil production in Block 5A and makes significant progress on its interstate highway project. Last year, South Sudan's petroleum minister announced plans to add more than 15,000 barrels to the current daily crude output of 178,000 barrels by restarting oil production in Block 5A. The country is set to begin oil production by the end of this year, marking a significant milestone in its economic recovery efforts.
The interstate highway project, which entails the construction of a 392-kilometer highway running northwards from the capital city Juba, is a key driver of economic development in South Sudan. This project, funded by the government, aims to improve connectivity across the country and provide better access to trade for rural communities. With improved transportation infrastructure, the logistical landscape of the country is expected to see a significant improvement, boosting economic growth and trade opportunities.
Political and Economic Affairs Analyst, Akol Dok, emphasized the economic viability of the highway project, stating that it will not only facilitate trade within South Sudan but also enable local producers to export agricultural commodities to neighboring countries such as Uganda, Rwanda, and Kenya. The project is expected to take three to five years to complete, with the goal of connecting every state in South Sudan with an interstate highway.
Diversifying South Sudan's predominantly oil-based economy, the highway project holds the potential to transform the country into a non-oil economy by creating market access for agricultural products. Farmers will now have the opportunity to cultivate and trade agricultural commodities such as sorghum, sesame, gum arabic, and livestock, with improved access to markets facilitated by the newly constructed highways.
The revival of oil production in Block 5A is another significant development for South Sudan's economy. Block 5A, located in Tragas, has the capacity to produce up to 15,000 barrels of oil per day. After being shut down in 2013 due to conflict, the government has been working on resuming production in the area. With plans in place to restart oil production by the end of this year, the government expects an increase in revenue that will enable it to fund more infrastructure and development initiatives.
In a post-peace project era, South Sudan's economic prospects are looking up with the resumption of oil production and the progress made on the interstate highway project. These developments are set to have a positive impact on the country's economy by boosting trade, improving logistical efficiency, and creating new opportunities for economic growth. With a focus on diversifying its economy and improving connectivity, South Sudan is paving the way for a brighter future.
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