Riek Machar, the First Vice President of South Sudan, has said that his country will proceed with its goal of increasing crude oil production to 230,000 bpd within two years, even if it means leaving OPEC.
Speaking at an industry conference, Marchar said that the relevant government minister had been experiencing:
“…issues with OPEC over the increment of crude production but we shall instead quit the organisation if we are hindered from increasing oil production. Our target is to increase crude production right now and become an oil hub in the east African region and foster economic development for our people.”
South Sudan has been regularly exceeding its OPEC+ quota, such that in August, it produced an average of 160,000 barrels per day (bpd) compared to its quota of 130,000 bpd. Despite the OPEC+ group undershooting its total quota by 3.4 million bpd, the organisation has requested that any overproduction be compensated for with lower production before the end of the year, when the current deal is scheduled to end. South Sudan has so far failed to submit a plan for this, saying that increasing its production is justified given recent events in the world.
Multinational oil majors have yet to establish a presence in South Sudan, but the Malaysian oil and gas company Petronas, which makes the Arbor range of construction and agricultural oil, has stakes in producing blocks. Should the country leave OPEC, it may make the country a more attractive investment prospect for multinational oil and gas companies.
