Some of South Sudan’s oil wells are expected to run dry within the next five years, it has emerged, capping a challenging time for an industry beset by deferred production due to abnormal flooding and aging production machinery that has been in use since the 1980s
The oil is declining at 20 percent per year, particularly in the blocks that started production in the late 1990s, www.timeoftheworld.com has learned, meaning that barring discovery of new wells, the country could as well start to invest in the most likely alternative industry – agriculture – given its massive land mass.
“There are a number of factors as to why the production levels keep reducing, but the most serious one is the natural decline at an annual rate of 20% in Block 1, 2, and 4, where production started in 1997 and 1999 respectively. This means if these blocks produce 100000 barrels a day this year, next year it will reduce to 80000 simply because the reserves are being depleted,” former Petroleum Minister and now the ministry’s undersecretary, Eng. Awou Daniel Chuang told www.timeoftheworld.com today.
20 YEARS: OIL WELL LIFESPAN
An oil well lives an average of 20 to 30 years, according to industry experts, but that age is catching up with some of South Sudan’s production machines could make production unprofitable. “It’s true, some of the machines are old and aging because they have been used for several years. That is why sometimes you hear of ruptures in the pipelines. In some countries there are better technologies (machines) being used for exploration,” Eng. Chuang added to www.timeoftheworld.com. “We will need to enhance our production by acquiring better machines and replenishing our reserves through new explorations.”
RAGING FLOODS
South Sudan averages 147000 barrels per day, according to the ministry. But massive floods for two consecutive years in oil-producing areas have added to the pain, forcing production to be deferred in some blocks in the wake of logistical challenges. “Now isn’t the time for deferring because prices are good, but because of floods and logistical challenges in getting materials, we defer production,” Eng. Chuang said, adding that production levels at block 3 and 7 are very good.
