South Sudan Threatens To Quit OPEC+ If Hindered From Increasing Production

South Sudan has threatened to leave OPEC if the organization interferes with the country’s ability to meet its ambitious oil production targets.

Riek Machar, South Sudan’s first vice president, said yesterday at an industry conference that the country has had disagreements with OPEC+ over its crude oil targets.

South Sudan intends to increase crude oil production to 230,000 barrels per day by 2024. The country’s August production cap, agreed to by OPEC+, was, however, significantly lower, at 130,000 bpd.

However, according to Argus, the country’s actual production for August was 160,000 bpd. Argus is a highly regarded independent provider of energy and commodity price benchmarks around the world.

“Our petroleum minister has had disagreements with OPEC over increasing crude production, but we will instead leave the organization if we are prevented from increasing oil production.”

“Our goal right now is to increase crude production and become an oil hub in the east African region, fostering economic development for our people,” Marchar said yesterday at an industry event.

OPEC+ has been chastised in recent months for failing to increase output quickly enough in the midst of a tight global crude market exacerbated by Russia’s invasion of Ukraine.

According to an internal OPEC+ technical committee report, “South Sudan accounts for around half of the coalition’s overproduction to date,” according to Argus. OPEC+ producers were estimated to have produced 3.4 million barrels per day less than their quotas allowed in August.