Crude production could be in full pumping within ten months if the oil deal with the Sudan goes ahead.
Finance Deputy Minister Marial Awou Yol told the press on Tuesday in Juba that it takes months to repair damaged oil equipment and re-staff companies before crude starts flowing again to the international market.He added that the Oil Ministry expects to resume crude production of Dar Blend in Upper Nile by December while the Nile Blend in Unity State should start in June 2013.
Dr Awou said there are signs of tension in the economy of South Sudan and reserves were greatly reduced.
However, he added that the Government has enough money to pay salaries through a large loan from the Central Bank of South Sudan.
The Deputy Minister promised to reinstate full allowances as soon as oil production resumes.
Dr Awou said the Government was securing foreign currency loans from external sources to finance infrastructure and service delivery.
He refused to disclose how much and from whom the Government has borrowed so far.
Dr Awou concluded that South Sudanese need to keep their belts tight for at least another six months until money from oil starts flowing again into the national coffers.
He announced an increase on personal income and excise taxes, especially in alcohol, cigarettes and luxury vehicles.