World Bulletin / News Desk
The world’s newest country is estimated to have Sub Saharan Africa’s third-biggest crude reserves.
The renewal defines the legal and tax system governing oil companies, operating licenses and crude oil transportation installations among several things.
In remarks made to the media in the capital Juba on Friday, Petroleum Minister Ezekiel Lol Gatkuoth said: “We have renewed the oil contracts for five years; the system is being updated to promote exploration and development, and to support oil production in the country.”
The agreement also provides for an extension of the contract till 2022 for the Paloch and Unity oil fields. The production from the two oil blocks is also expected to increase, Gatkuoth said.
“With this package now signed, we will now be moving forward with oil production, especially in places that were shut down,” he said.
This project will add more than 200,000 oil barrels per day in the first half of 2017, the minister said.
Oil contracts had been signed by the government of neighboring Sudan before South Sudan gained its independence in 2011.
CNPC President Jia Yong said: “We will do our best to increase the production and also support the resumption of oil for the Unity oil fields.
“We will work with the Ministry of Petroleum to do our best for this country in terms of economic development.”
Yong called for strengthening joint cooperation as the company resumes oil production in Unity state oil fields. He added that such cooperation would benefit both countries.
The Chinese Ambassador to South Sudan, Ma Qiang, who attended the meeting, said his country was encouraging the CNPC to increase oil production in South Sudan in the interest of the two countries.
Civil war in South Sudan cut oil output by a third to about 130,000 barrels per day. The country is currently only pumping oil in the Upper Nile state after Unity production stalled in 2014.
Before the war, China National Petroleum Corporation, Malaysia’s Petroliam National Bhd. and India’s Oil & Natural Gas Corporation produced most of the oil in the country.
The violence has so far left tens of thousands of people dead and 2.4 million displaced.
The euro reached $1.1388 Wednesday, the highest level since a year earlier.
The IMF warned that "significant policy uncertainties imply larger-than-usual" risks to the US outlook on either side, since spending cuts could lower growth, while tax cuts could provide stimulus and expand the economy.
Now the VNO-NCW is calling for the Dutch parliament to reverse a 2015 decision to introduce a cap of 20 percent of annual pay on the bonuses which can be paid out to top managers in the banking industry.
The state-owned energy trading firm Lietuvos Duju Tiekimas said it signed the deal with the Texas company Cheniere Energy.
Adding to the upward pressure for oil is the crisis in the Middle East, where a Saudi-led blockade of Qatar has fuelled concerns of possible conflict.
Bourses in both Paris and Frankfurt dipped after a report from data monitoring company IHS Markit showed Eurozone private sector business activity slowed sharply in June while staying in expansion mode.
Analysts said that while the downturn in the headline readings was disappointing, the economy continued to put in a strong performance.
Crude prices stabilised after diving more than two percent on Tuesday on increasing fears of a global supply glut, as continued production in the US and elsewhere offsets an OPEC output cut deal.
Move estimated to save company $1B in investment costs
However, most other regional markets struggled after Monday's healthy gains, despite being given a positive lead from Wall Street where the Dow and S&P 500 closed at fresh record highs.
The purchase in one fell swoop gives Amazon, which until now has operated almost entirely on the internet, a big presence in the brick-and-mortar world on Main Street, with more than 450 stores in the US, Canada and Britain.
"The Bank of Russia Board of Directors decided to cut the key rate to 9.00 percent per annum," the bank said in a statement. The cut follows a half-point decrease in late April.