South Africa will invest $1 billion in South Sudan’s oil sector, the two countries announced on Friday.
South African Energy Minister Hon. Jeff Radebe and South Sudan Minister of Petroleum and Mining Hon. Ezekiel Lol Gatkuoth signed a Memorandum of Understanding (MoU) stipulating that South Africa would participate in the exploration of several South Sudanese oil blocks.
“What we have signed this morning (Friday, 23 November 2018) is the cooperation between our two companies, Nilepet and the South Africa Energy Fund then from there the funding will come from Central Energy Fund of South Africa,” Minister Gatkuoth said in a report by Reuters.
The investment includes the construction of an oil refinery, which is expected to produce 60,000 barrels per day.
Minister Gatkuoth noted that the MoU would also cater for the construction of a pipeline to serve fields located in the south of the country.
This investment falls in line with the South Sudanese government’s goal to increase exploration activity in the country and attract new participants.
“Drill, drill, drill. That is our message to the investment community because you cannot produce more oil unless you look for more oil. South Sudan has plenty of oil and now we have the enabling environment for companies to find it,” Minister Gatkuoth said at South Sudan Oil & Power 2018 conference, hosted by Africa Oil & Power last week.