Oil production plunges in South Sudan due to flooding, Covid-19
An official said Wednesday that the country’s oil production has fallen from 170,000 barrels a day to 156,000 BPD amid the COVID-19 pandemic and heavy flooding since 2020.
According to the minister of Finance and Economic Planning, Agak Achuil Lual, the projected decline in oil production is due to the depletion of some oil wells and floods.
A total of $1.4 billion in gross oil revenue was earned by South Sudan, of which $1.1 billion went to direct transfers and $148 million went to neighboring Sudan for processing, transportation, and transit fees.
This fiscal year, the East African nation is expected to collect $135 million in non-oil revenue, a 31.1 percent increase over the $103 million collected in 2020/21.
We are implementing tax administration reforms at the National Revenue Authority to increase the collection of non-oil revenues, including digitization of tax collections, broadening the tax base, and fully deploying national revenue authority staff in all non-oil revenue collecting institutions,” said Lual.
The world’s youngest republic, which depends on 95 percent of oil revenues, has been ravaged by years of conflict.