The signing of 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, according to the African Energy Chamber (AEC)
This oil deal marks yet another achievement for Africa’s growing energy investments and will further boost the economic revival of South Sudan, the chamber added.
This is the second petroleum exploration agreement that South Sudan has signed since independence. Singing this deal with South Africa’s state owned company marks the emergence of strong intra-African energy cooperation and signals South Sudan’s willingness to provide an enabling environment for investors to invest and do business in the country.
NJ Ayuk, CEO of Centurion Law Group and the chamber’s executive chairman, stated, “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.”
“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 policies in oil states,” he noted.
The chamber believes that the potential for large oil and gas discoveries is immense in South Sudan, which remains largely under-explored despite having already proven 3.5bn bbl oil reserves. New entrants like the SFF are vital to ensuring socio-economic development in South Sudan and showing the way for more investors to come.
South Sudan expects to produce nearly 270,000 bopd 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 through additional connectivity pipelines, refining infrastructure, and expanding the country’s marketing network.
