South Africa to invest $1bn in South Sudan’s oil sector

November 23, 2018 Business, South Sudan

A worker walks by an oil well at the Toma South oil field to Heglig, in Ruweng State, South Sudan August 25, 2018(Photo credit: REUTERS/Jok Solomun)

Nov 23rd, 2018(SSNN) — South Africa will invest 1 billion dollars in South Sudan’s oil sector, including in the construction of a refinery capable of producing 60,000 barrels of oil per day.

Jeff Radebe, the South African Minister of Energy and his South Sudanese counterpart Ezekiel Lol Gatkuoth, said on Friday.

South Sudan’s oil industry is dominated by Asian firms including China National Petroleum Corporation (CNPC), Malaysia’s Petronas and India’s Oil and Natural Gas Corporation (ONGC Videsh).

The two ministers signed a memorandum of understanding which will also involve South Africa taking part in the exploration of several oil blocks, the ministers said.

“When this refinery is complete, it will have the capacity of producing 60,000 barrels of oil per day,” said Radebe.

Gatkuoth said the deal also offers avenues for cooperation in the construction of a pipeline to serve fields located in the south of the country.

South Sudan exports its crude through another pipeline that goes to a port in neighbouring Sudan to the north.

“It is instrumental to have a new a pipeline,” Gatkuoth said.