South Sudan is actively soliciting capital to boost domestic oil production from its current level of approximately 170,000 barrels per day (bpd) to a short-term goal of 230,000 bpd. According to reports from OilPrice.com, the South Sudan Oil & Power conference, scheduled for late November 2026, aims to attract investors to 14 exploration blocks. However, the nation's energy sector remains constrained by the ongoing civil war in neighboring Sudan, through which all South Sudanese crude must transit to reach export terminals on the Red Sea.
Export operations are currently subject to the influence of warring factions. Crude from Blocks 1, 2, and 4 flows through the Greater Nile pipeline via Heglig, an area where the Sudanese paramilitary Rapid Support Forces (RSF) hold territory while the Sudanese Army controls the export terminals. Industry sources cited in the report indicate that Juba pays a $11 fee per barrel to these forces, with $4 of that total going to the RSF. The Sudanese Army utilizes transit and processing fees to support its military operations.
Infrastructure vulnerabilities persist elsewhere in the region. The Petrodar pipeline, which transports Dar Blend from Blocks 3 and 7, previously suffered a significant shutdown in February 2024 due to a rupture that reduced production to roughly 62,000 bpd. While full flows resumed in April 2025, the facility continues to face threats from drone attacks. The economic impact of these disruptions was severe, with South Sudan’s economy contracting by an estimated 24% in fiscal 2025.
While the government in Juba aims to increase output, a petroleum ministry official noted an August 2027 target of 200,000 bpd, contrasting with the more aggressive 230,000 bpd figure promoted for the upcoming conference. Expanding production remains tied to the capacity of existing pipelines, as the World Bank has indicated that alternative routes to Kenya or Djibouti would require significantly higher production volumes and capital investment to be viable. Investors seeking to capitalize on these blocks must navigate a complex security landscape where any increase in production serves to bolster the income of the forces controlling the transport corridors. Source: OilPrice.com
