While oil prices rebounded last week on hopes of successful negotiations between Saudi Arabia and Russia, they went back down again today following the negotiations’ delay. Oil prices currently average $25 to $30 a barrel, maintaining their historic low and hurting producers around the world.
Recently appointed Minister of Petroleum of South Sudan, Hon. Puot Kang held talks over the phone with H.E. Mohammed Sanusi Barkindo, Secretary General of OPEC, today to try to find an exit out of the current crisis. Hon. Puot Kang also pledged to join the OPEC negotiations on Thursday April 9th, with the hope of reaching a favorable agreement that will stabilize the market and bring benefit to South Sudan and its producing companies.
South Sudan participated in the OPEC Declaration of Cooperation and OPEC+ and has been a consistent supporter of OPEC’s measures to prevent volatility and maintain market stability. Because 98% of the economy of South Sudan depends on oil production and revenue, the country is one of the hardest hit by the current crisis and price war.
“South Sudan believes that market volatility is negative for every player in the market and hurts out ability to attract new foreign investment, diversify our economy and promote peace,” stated Hon. Puot Kang. “South Sudan is focused on boosting exploration and opening up new oil and gas fields, and the current scenario hampers our growth targets significantly,” he added.
Hon. Puot Kang notably expressed South Sudan’s willingness to work with OPEC and OPEC+ to end the price war in any way possible. He also further welcomed OPEC’s support in the exchange of information and best industry practices on key matters pertaining to local content development, domestic capacity building, technology transfers and oil revenue management.