JUBA -- South Sudan expects to restart oil production in
December, almost one year after a row with Sudan led it to shut
down the oil that provided nearly all the government's revenue,
officials said Tuesday.
The closure had sparked fears that the fledgling country's
economy--which relies on oil for 98% of its revenue--would
collapse.
"The ministry of petroleum and mining expects production of Dar
Blend (oil) to begin in December, with the first payments possibly
received in January," Deputy Finance Minister Marial Awou Yol told
reporters.
However, full production--using other pipelines with different
oil types--was not expected to resume until June 2013, he
added.
Juba recently reached an agreement with Sudan over how much it
should pay to export crude through Sudan, ending a bitter row over
fees that led to a complete shut-down of production in January, and
escalated into a border conflict months later.
Sudan has said that an agreement on borders and security must be
reached at the next round of African Union-led talks due to start
this weekend to cement the oil deal.
"Our reserves are greatly reduced, there are signs of tension in
our economy, and it will take many months before oil revenues start
flowing if Sudan and South Sudan agree on a number of other
issues," Mr. Yol said.
Internal borrowing and new loans would be taken to pay
government and army salaries, he added.