South Sudan plans to resume oil production at 90,000 barrels per day after Sudan lifted a force majeure clause, which had halted oil sales for nearly a year. Energy is crucial for the economy, contributing 90% to the GDP, but health and environmental issues persist, leading to concerns over continuing oil reliance amid a global energy transition.
South Sudan has announced its intention to restore oil production, aiming for an output of at least 90,000 barrels of crude oil per day. This plan emerges following the cessation of oil supplies to international markets last February due to escalating conflict within Sudan. The resumption is made possible after Sudan lifted the force majeure clause that had previously impeded South Sudan’s oil sales, allowing the nation to return to normal production levels.
Ninety percent of South Sudan’s Gross Domestic Product (GDP) is derived from its extensive oil reserves. The minister of petroleum, Puot Kang Chol, expressed optimism about the resumption of production, proclaiming, “the kickoff date of resumption is tomorrow,” which is scheduled for January 8, 2025. He asserted that despite the global shift toward renewable energy, South Sudan would continue to utilize its oil reserves for economic survival.
In the capital, Juba, the effects of oil production on public health were highlighted through the experiences of Betty Yobu, a resident suffering from chronic health issues attributed to exposure to toxic smoke from charcoal stoves. Yobu’s health deteriorated as a result of prolonged inhalation of carbon monoxide, which raises concerns over the country’s environmental health juxtaposed with the need for economic resources.
Chol acknowledged the existing health challenges, stating the necessity of economic resources provided by oil for providing health care access. He emphasized, “the reality is, ‘I go hungry, have no food, I will die,’” indicating the prioritization of economic needs over environmental concerns. Furthermore, past controversies regarding oil revenue and environmental implications remain; environmentalists advocate for stringent safeguards before the recommencement of oil production.
Despite apprehensions surrounding environmental impacts and health risks, South Sudan, recognized as one of sub-Saharan Africa’s leading oil producers, anticipates that the renewed production efforts will ease fiscal burdens on both itself and neighboring Sudan, ushering a new phase for its struggling economy.
The context of South Sudan’s announcement is significant given that the country relies heavily on oil to fuel its economy, with 90% of its GDP stemming from this sector. Historical conflicts in the region often have substantial economic implications; for instance, the force majeure clause invoked by Sudan earlier in 2023 hindered South Sudan’s ability to sell its oil. The lifting of this clause represents both a recovery from adversity and a critical moment for South Sudan’s oil-dependent economy. As global trends shift towards cleaner energy sources, South Sudan’s commitment to continuing oil production raises important questions about the balance between economic development and environmental sustainability. The country’s health-related challenges linked to oil production underscore the complex implications of extracting natural resources in regions where public health often suffers in the face of economic hardship.
In summary, South Sudan’s announcement to resume oil production is a critical move aimed at reviving its economy, heavily reliant on oil revenues, following a disrupted supply chain due to conflict in Sudan. While economic imperatives drive this decision, public health and environmental concerns present ongoing challenges. Balancing immediate economic needs with sustainable practices will be essential for the country’s future prosperity and the well-being of its citizens.
Original Source: www.voanews.com
