Understanding Oil Production: Investigating Factors Affecting the Oil Production Decline in Blocks 3 & 7 of South Sudan (2017-2022)

Abstract

The study has comprehensively examined factors that have led to oil production decline in block 3 & 7 in Paloch of South Sudan from 2017-2022 as well as appraising solutions to the oil production decline. The study objectives were subjected through rigorous empirical literature review and the gaps in the literature were filled through field research. During fieldwork, mixed research methodology was deployed. This includes qualitative and quantitative research design. Research instruments such as questionnaires and interview guides were used to collect the data with a target population of 100 people that was later determined via Yamane’s formula to end up with a sample of 80 respondents. The study found systematic and drastic oil production decline of block 3 & 7. From 2017, the average daily production was 131,000 barrels per day (bpd). However, in 2022 the average daily production was 97,267 barrels per day (bpd). The study findings indicate that the causes of oil production are high water cut (produced water), too much sand produced, floods, poor & obsolete technologies and wars & conflicts in block 3 & 7 of Paloch. The study found the solutions to this oil production decline as re-injection of the water to the reservoir, proper reservoir management, laboratory testing for the sand before it accumulates, use of dykes and river Nile dredging for floods prevention, use of modern and relevant technologies and finally maintenance of genuine peace and security across the country. The study concludes with immediate implementation of the solutions to the oil production decline and carrying out more explorations as most of the oilfields are still green fields for new discoveries.