- The South Sudan oil minister claimed that the Strategic Fuel Fund belonging to South Africa are welcome to look for partners to execute the $1 billion deal.
- The Strategic Fuel Fund presently possesses 90% ownership of the project located in the B2 block while the Nile Petroleum Corporation owns the rest.
The Strategic Fuel Fund, an entity that manages South Africa’s crude oil reserves, is reportedly seeking new partners to execute its $1 billion deal to drill for oil, construct a refinery, and a pipeline in South Sudan.
Reports cite, according to the terms of the agreement that was signed by the two governments on 6th of May, the Strategic Fuel Fund currently holds a 90% ownership of the project located in the B2 block with South Sudan’s national oil firm, Nile Petroleum Corporation owning the rest.
According to reliable reports, the partnership between the two governments is expected to benefit South Sudan by expanding production in a country where the output stands at approximately half of the pre-civil war era capacity while also securing energy for South Africa.
The Minister of Petroleum of the Republic of South Sudan, Ezekiel Gatkuoth stated that the project, which is expected to reach production in approximately six years, also includes the construction of an oil refinery in Pagak with a 60,000 barrels per day capacity. Gatkuoth further added that the Sudanese government possesses the right to green light any partners & that the proposed transaction would be subjected to the capital gains tax.
Apart from bringing in new partners to the oil fields, the Republic of South Sudan is also trying to diversify the nation’s oil export routes. The nation presently exports its oil through Sudan at approximately $24 per barrel.
As the matter is still under development, the names of the potential partners have not been unveiled yet.