South Sudan to resume crude oil production

The South Sudan government has ordered energy and pipeline companies to resume crude oil production.

The South Sudan government has ordered energy and pipeline companies to resume crude oil production. The announcement came after South Sudan officials reached an agreement with its neighbors in Sudan regarding the border dispute between the two countries, according to Dow Jones Newswires.

"Foreign oil companies and pipeline operators operating in the Republic of South Sudan are hereby ordered and instructed forthwith to recommence and re-establish the production of crude oil and all petroleum operations within producing blocks," said South Sudan's Minister of petroleum and mining, Stephen Dhieu Dau.

South Sudan broke away from Sudan in July 2011. About 98 percent of the South Sudan government's revenue comes from the production of 350,000 barrels of oil per day, according to the Sudan Tribune.

The country shut down oil production in January 2012 following disagreements with Sudan over oil charges. South Sudan also accused its neighbor of stealing its oil and diverting it into other pipelines. The two countries later reached an agreement to solve the border dispute in September 2012, the Tribune reported.

"The oil resumption order shall continue in all aspects to have full force and effect and be binding on the foreign oil companies and pipeline operators in the republic of South Sudan," Dau said.

To learn more about crude oil supply around the world, visit PennEnergy's research area.

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