Understanding the Oil Production: Investigating Factors Affecting the Oil Production Decline in Block 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 as well as appraising solutions to the oil production decline. The study has tested the following three study objectives: to define the concept and origin of oil production decline, to examine factors responsible for oil production decline in block 3 & 7 of South Sudan from 2017-2022 and to appraise solutions to the oil production decline in block 3 & 7 of South Sudan. The study deployed traditional decline analysis theory, which analyzed the decline curve of crude oil production of block 3 & 7 from 2017 to June 2022. The study objectives were subjected through rigorous empirical literature review and the gaps in the literature were filled through field research. During fieldwork, research instruments such as questionnaires and interview guides were used with a target population of 100 people that was later determined via Yamane’s formula and ended up with a sample of 80 respondents. The study used SPSS version 21 and Excel (Spreadsheet) for analysis of the field data. 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 is 97,267 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 recommended the immediate implementation of the solutions to the oil production decline and more importantly carrying out of more