Sudan deal a boon for SA oil
The signing of the new exploration and production sharing
agreement (EPSA) between South Sudan and South Africa’s
Strategic Fuel Fund (SFF) is a boost to the oil sector and promotes
peace and stability within the country. This landmark oil deal marks
yet another achievement for Africa’s growing energy investments
and will provide further boost to South Sudan’s economic revival.
This is the second petroleum exploration agreement that South
Sudan has signed since independence. Signing this deal with
South Africa’s state-owned company marks the emergence
of a strong intra-African energy co-operation and signals the
willingness by South Sudan to provide investors with an enabling
environment to invest and do business in the country.
“This is a brilliant deal and the future outlook for exploration in
South Sudan and Block B is huge, with prospective resources into
the billions of barrels of oil. The potential discoveries can be quickly
and cheaply tied into existing infrastructure,” said NJ Ayuk, CEO of
Centurion Law Group and the Chamber’s executive chairman.
“I am also impressed by the deals commitment to local content,
dedication to hiring citizens of South Sudan and investment in
education. Education is likely going to do more to strengthen
the overall economy than anything else the government can
do. South Sudan’s ability to attract, retain, and leverage energy
investment is key for an inclusive and sustainable economic
growth. The Chamber will continue to provide and support
market-driven and people-centred polices in oil states,” added
NJ Ayuk.
The Chamber believes that the potential for large discoveries of
oil and gas is immense in South Sudan, which remains largely
From left: Jeff Radebe, South African Minister of Energy, Salva Kiir,
President of South Sudan and Vice President designate of South Sudan,
Riek Machar.
under-explored despite already having proved oil reserves of 3.5
billion barrels. New entrants like the SFF are key to ensuring socio-
economic development in South Sudan and show the way for more
investors to come.
South Sudan is expecting to produce close to 270 000bopd by
the end of this year and is seeking investment across its value
chain. The expansion of the country’s oil and gas industry offers
tremendous investment opportunities in upstream, midstream
and downstream via the laying of additional connectivity
pipelines, refining infrastructure and the expansion of the
country’s marketing network. b
www.africanmining.co.za
Visit #africanmining for the latest industry news,
articles, products and events...
www.africanmining.co.za
JULY - AUGUST 2019 AFRICAN MINING
45