13 Dec 2018

 

South Africa To Invest USD 1Billion In South Sudan Oil Industry

South Sudan and South Africa on Friday signed an agreement to allow South Africa invest in the South Sudan’s oil industry.

South Africa To Invest USD 1Billion In South Sudan Oil Industry
Vice President Dr James Wani Igga, petroleum minister Ezekiel Lol Gatkuoth, and participants at the SSOP conference in Juba [Gurtong photo|Ojwe Lumara]

By Ojwe Lumara

JUBA, 26 November 2018 [Gurtong]-The South African investment is expected to reach up to around $1bn in the newly revamped South Sudan oil industry.

The agreement was signed between two South Africa's Central Energy Fund and South Sudan's Nile Petroleum Corporation.

The agreement came a day after a successful second Oil and Power conference held in Juba, where over 400 representatives from international and local oil companies attended.

Ezekiel Lol Gatkuoth, Minister of Petroleum said the South African investment will go into building a refinery and pipelines as well as oil exploration and training of workers and engineers.

“South Africa is a true ally to the people and the Republic of South Sudan and their support has been realized many years ago and today we have signed a MOU and government to government corporation agreement to work together very closely in the oil and gas industry,” he said.

Nilepet and Central Energy Firm of South Africa will corporate to make sure that the implementation of the agreement is realized.

He said Blocks such as B1and B2, E1and E2, and A1 to A6 are available.

“We will go to the next stage of negotiating and exploration and production sharing agreement so that we can move quickly in acquiring new blocks,” Minister Ezekiel said.

The Minister said South Sudan and Ethiopia have an agreement to sell refined products to Ethiopia, and that if a refinery is built, Ethiopia will be buying.

South Africa's energy minister said, “When this refinery is complete it will have a capacity of producing 60 000 barrels of oil per day.”

"The whole project, the block exploration together with the refinery, the pipelines, we are looking at an investment of more than one billion US dollars.

South Sudan currently sends crude oil by pipeline to Sudan’s oil refinery because it does not have its own refinery.

One month since the signing of a peace agreement, South Sudan has stepped up efforts to cooperate with African countries in the energy industry.

This week, South Sudan and its northern neighbor Sudan signed an agreement that will send at least 10 South Sudanese engineers to Sudan to be trained in oil exploration and mining. Sudan played a prominent role in supporting the South Sudan peace agreement and was instrumental in the resumption of oil production at the Toma South field this year.

 

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