China’s Oil Giant To Boost Oil Production In South Sudan

December 22, 2014 Onyedimmakachukwu Business, Energy

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VENTURES AFRICA – Chinese state-owned oil and gas corporation, CNPC, has entered into an agreement with South Sudan to boost oil production of existing oilfields in the young African state, according to a report in China Petroleum New, a CNPC-run paper, cited by Reuters.
China National Petroleum Corporation, or CNPC, is the largest integrated energy company in the People’s Republic of China. Oil is South Sudan’s main source of revenue, but output has dropped due to conflict, which has damaged some oil fields, and ageing fields.
The report by China Petroleum New said CNPC’s engineering and services team will work with oil producers in South Sudan and also conduct training on
technologies to enhance oil recovery (EOR).
Beijing-headquartered CNPC is one of the main investors in South Sudan, other major players are Malaysia’s state-run oil and gas firm Petronas and India’s ONGC Videsh.

The 1/2/4 block in South Sudan, that produces mainly a medium sweet crude called Nile Blend, has entered its latter stage of production, while block 3/7 and block 5 produce largely heavy crude, the report said. All of these fields require EOR technology to boost output.
According to Reuters, a South Sudanese oil official put production in late June at about 160,000 barrels per day. It had been in the range close to 260,000 barrels per day.