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. Singing this deal with South Africa’s state owned company marks the emergence of a strong intra-African energy cooperation 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 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 270,000 barrels per day (bpd) 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.