(Ecofin Agency) - South Sudan’s Petroleum Minister, Ezekiel Lul Gatkuoth (photo), has announced plans to increase oil production from 130,000 to 350,000 barrels a day, in spite of the ongoing armed conflict in the country.

According to him, technical measures had been put in place to reopen oil fields in the northern Unity region, making it possible to boost national production to 350,000 barrels a day by early January 2017. Clashes between the army and rebels over the control of oil fields have resulted in oil wells being damaged and employees being evacuated.

The Petroleum Minister, however, has dismissed the possibility that conflicts would continue to hinder oil production, saying that the government would make sure that there is maximum security to oil workers and pipelines. The fall in oil production has severely hurt the country's economy, as foreign exchange reserves are now on the brink of exhaustion and inflation continues to rise.

Meanwhile, South Sudan is currently in talks with Sudan on oil transit fees, due to the collapse of oil prices. Let’s be reminded that South Sudan in August 2013, agreed to pay $9.10 to Khartoum for the oil produced in the Upper Nile state and $11 for that of the Unity region. Juba on the other hand agreed to pay the Transitional Financial Assistance (TFA) to the average of the agreed oil transportation fees.

In spite of the recent rise in oil prices to over $54 per barrel, they still remain far from the over $100 per barrel level it was when the two countries signed the oil deal in 2013, Sudan Tribune reports.

As a result, Gatkouth visited Khartoum during the weekend for talks on the renewal of the oil agreement which will expire by 2016-ending and is expected to sign a new agreement on Monday.

Anita Fatunji