South Sudan Taps China Partnership to Restart Oil Output Amid Africa's Drill‑Baby‑Drill Push
South Sudan has initiated the restart of oil production - centered on the previously shutdown blocks 3 and 7 - as part of a broader continental push to rapidly unlock hydrocarbon potential. The country’s Ministry of Petroleum announced that operations resumed on January 7, 2025, following a year-long disruption caused by pipeline damage in neighboring Sudan.
Initial production is projected at 90,000 barrels per day, with efforts underway to restore a stable export flow through Port Sudan. This development aligns with the continent-wide resurgence of upstream activity, as African nations - from Ghana to Namibia and Nigeria - accelerate drilling and refining initiatives to capitalize on their petroleum resources before global oil demand begins its long-anticipated decline.
Central to South Sudan’s revival is a Chinese-led consortium that includes state-owned companies such as the China National Petroleum Corporation (CNPC), Sinopec, and South Sudan’s own Nile Petroleum Corporation (Nilepet). In addition to production recovery, Chinese engineering firm Sokec has signed a memorandum of understanding with Nilepet to support refinery development and expand fuel storage infrastructure.
This partnership underscores South Sudan’s commitment to join the wave of African nations embracing the “drill-baby-drill” momentum - leveraging international cooperation to rapidly scale operations and reassert relevance in global energy markets. However, challenges remain. Oil revenues continue to represent nearly 90% of government income, placing enormous pressure on governance structures to ensure transparency, efficiency, and broad-based benefit.
With strategic support from China helping to restore critical infrastructure and revive production, South Sudan is re-emerging as a significant oil-producing player. If managed wisely, this energy rebound could serve not just as a boost to national revenues, but as a key contribution to Africa’s effort to convert resource potential into enduring prosperity - before the window of fossil fuel profitability narrows for good.
