South Sudan production far exceeds Opec+ quota

Crude oil production in South Sudan is now 180,000 b/d, oil minister Ezekiel Lol Gatkuoth said today, well above the level where it pledged to cap output as part of the ongoing Opec, non-Opec production cuts.

South Sudan, one of the 10 non-Opec countries participating in the cuts, committed to maintain its crude production at no higher than 129,000 b/d, down 3,000 b/d from its 132,000 b/d baseline.

Despite its production already being significantly higher than its quota, South Sudan is planning further increases to near 250,000 b/d before the end of the month, and to 270,000 b/d before year-end.

"We will continue to assess the market and see if it is interested in having more crude oil," Gatkuoth said. "We will be responding to the demand of the market."

In the longer run, South Sudan aims to achieve its pre-civil war level production of 350,000 b/d by 2023. The ministry hopes that the restart of exploration in Blocks B1 and B2, formerly operated by Total, and at Heglig, on its border with Sudan, can help the country meet its output goal.

South Sudan awarded an exploration and production sharing contract for block B2 to South Africa's state-owned Strategic Fuel Fund (SFF) earlier this month. Unity State, where the Heglig field is located, holds South Sudan's largest oil deposits.