S. Sudan: Oil discovered in Upper Nile State

OIL discovered in northeastern Upper Nile State, South Sudan.  Jonglei and Warrap identified as rich in oil reserves.

300 million barrels of oil have been discovered by a consortium commissioned by the government to do prospecting in the southeastern region of the country.  This sets in motion opportunities for more oil exploration licences from the government, as more areas are confirmed as oil rich.

Article from allAfrica.com

By ESTHER ROSE

Dated 22 August 2019

South Sudan: More Black Gold Struck - 300 Million Barrels, and Counting

Cape Town — 300 million barrels of recoverable oil has been discovered in South Sudan's northeastern Upper Nile state, by a consortium comprising the Dar Petroleum Operating Company (DOPC), which includes China National Petroleum Corporation, Petronas, Nilepet, Sinopec and Tri-Ocean Energy, according to the African Energy Chamber.

"This is a remarkable achievement for the country," said Nj Ayuk, Executive Chairman at the Chamber and CEO of the Centurion Law Group. "Since independence, South Sudan has worked tirelessly to bring back damaged fields to production, and especially encourage exploration".

South Sudan had earlier in 2019, signed an exploration and production sharing agreement with South Africa's Strategic Fuel Fund for the highly prospective Block B2. The move was part of South Sudan's strategy to diversify its basket of investors and encourage further exploration.

While the country sits on over 3.5 billion of proven oil reserves, the third largest in sub-Saharan Africa, 70% of its territory remains under-explored. Among those areas are Jonglei and Warrap, which has also been identified as rich in oil reserves.

South Sudan and Sudan are also in talks on cooperation to re-pump oil from South Sudan at a faster pace.

To boost exploration, South Sudan will be launching a new and much-awaited petroleum licensing round at the upcoming Africa Oil & Power conference in Cape Town on October 9th, 2019.

View original article here: https://allafrica.com/stories/201908220235.html

Further Reading

Critics Warn South Sudan to Be Wary When Signing Oil Deals

President Salva Kiir has received offers from agents of established companies, organizations and non-descript financing groups worth billions of dollars, that critics warn will ... Read more »

S. Sudan: Govt Signs 'Suspicious' Oil Agreements to Turn Economy Around

S. Sudan: Why Govt Continues to Fall Out of Favour With International Part

Map of oil concession areas in Sudan and South Sudan (Credit: Eric Reeves)

To view larger version click here: http://sudanreeves.org/category/maps/page/2/

South Sudan to build its first oil refinery in Akon in north-western Gogrial area of Warrap state

Most of Sudan’s oil is produced from the oil fields located in southern Sudan while the current country’s refineries are all located in northern Sudan.  

98% of southern Sudan’s overall revenues that constitute the annual budgets for the region come from the 50% share of the oil produced in its Upper Nile and Unity states.  

In a meeting on Friday chaired by Vice President Riek Machar Teny, South Sudan's Council of Ministers passed a resolution on a project for building an oil refinery in southern Sudan that will be located in a place called Akon in North-western Gogrial area of Warrap state.  Reportedly, the crude oil that is targeted for refinery will be extracted from Block 5A oilfield in Unity state.

The Council of Ministers also directed the Minister of Energy and Mining to discuss the possibility of building refineries at the sites of the oilfields in Upper Nile and Unity states with any major oil companies that may be interested.

Source: Sudan Tribune, Sunday, 4 October 2009, by James Gatdet Dak.  Copy:
South Sudan to build its first oil refinery in Warrap state

October 2, 2009 (JUBA) – The semi-autonomous region of Southern Sudan has embarked on building its first ever oil refinery in Warrap state for its huge oil reserves as the clock ticks towards referendum on secession in January 2011.

Sudan currently produces more than 600,000 barrels of crude oil per day which bring tens of millions of US dollars on daily basis from the international market.

Most of the Sudan’s oil is produced from the oilfields located in Southern Sudan while the current country’s refineries are all located in Northern Sudan.

98% of Southern Sudan’s overall revenues that constitute the annual budgets for the region come from the 50% share of the oil produced in Upper Nile and Unity states in accordance with the 2005’s peace deal between North and South.

In its Friday meeting chaired by the Vice President Dr. Riek Machar Teny, the Council of Ministers passed a resolution on the project for building the oil refinery in Southern Sudan that will be located in a place called Akon in North-western Gogrial area of Warrap state.

The project was initiated and presented to the cabinet meeting by the Minister of Energy and Mining, John Luk Jok.

The huge refinery project which is expected to take about three years to complete from the date it kicks off at the construction site will begin by establishing a Joint Venture Company (JVC) with any oil companies interested to partner with the government, finding financiers to fund the project and then JVC finally signing a contract with a national or international company that will implement the project on the ground.

According to a press statement by the official spokesperson and Minister of Information and Broadcasting, Paul Mayom Akech, the crude oil that is targeted for refinery will be extracted from Block 5A oilfield in Unity state.

To transport the crude oil to Akon refinery site, Minister Mayom explained that the Company will also construct a pipeline of some hundreds of kilometers long from the Unity state oilfield.

Mayom said the Government of Southern Sudan will have the biggest share in the $10 million worth JVC ownership body and the share will be represented by the Southern Sudan indigenous Nilepet oil company.

After formation of the JVC and securing of funds, the Company would then advertise the project to any interested national and international companies that would be subjected to competitive bidding process and out of which a winner will sign a contract with the JVC to technically implement the project on the ground.

Tens of thousands of indigenous people of Southern Sudan are expected to benefit from the project as they will be employed to do most of the labor work at the construction sites.

The cost for implementing such an expensive single project is not yet known, but may run into billions of dollars.

The Council of Ministers also directed the Minister of Energy and Mining to discuss the possibility of building refineries at the sites of the oilfields in Upper Nile and Unity states with any major oil companies that may be interested.

The semi-autonomous region earlier resolved to also embark on a separate project to build an alternative pipeline from Southern Sudan to Port Mombassa in Kenya for transporting the crude oil to the international markets.

Currently the crude oil from Southern Sudan is being transported to the international market via Port Sudan in the far North-eastern part of the country through the thousands of kilometers long Chinese-constructed pipeline.

Mayom said the Government stressed the importance of indigenizing the operations of the oil sector so that “Southern Sudan is not caught up” in case it chooses secession in 2011.

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