Petroleum
minister Daniel Awow Chuang told about 600 prospective investors during
the South Sudan Oil and Power conference in Juba that the blocks would
be licensed competitively from next year.
“We have demarcated around 14 blocks. We are inviting all investors to have a look at these blocks,” Mr Chuang said.
He
said Juba hopes to establish a data room for the blocks in two months,
before licensing them on a competitive basis from early 2020.
The
government hopes to interest financiers and new investors in the sector
especially those with strong linkages to other segments of the economy.
During the two day conference, the government will
front resumption of production at key oilfields following a ceasefire
and improving business conditions as attractions to investors
South Sudan currently produces 175,000 barrels per day, about a
third of the potential 500, 000 bpd, despite the sector being largely
unexplored.
The Oil & Power conference has become a
focal selling point for opportunities in South Sudan which is hoping to
put years of war behind it with the formation of a transitional
government on November 12.
Last year, South Africa and
South Sudan signed agreements that would see the former’s Strategic
Fuel Fund invest in the latter through the Nile Petroleum company.
Taban
Deng, South Sudan First Vice President, said having petroleum
infrastructure such as oil refineries in the region would help alleviate
the fuel crises in many countries.
Regional oil trade
Mr
Taban Deng Gai said building of refineries would help the region save
billions of dollars that countries spend on importing refined petroleum
products annually.
“I am aware the volume of Ethiopian
imports of refine products is from $5 to $7 billion annually. South
Sudan can take part in this by building an oil refinery in Poloch.
I believe also in DRC, CAR, part of Kenya and Uganda. Let’s think critically about this.” Taban Deng
Ethiopian
State minister of Petroleum – Koang Tutlam – asked governments to
address insecurity as it affected stability and growth of the entire
region. Some of South Sudan’s oil wells are located close to Ethiopia’s
South Western border.
“With Ethiopia’s population of
100 million and huge demand of hydro-carbon, we can provide one of the
best markets for South Sudan oil because of proximity,” said Koang.
Kenya’s
Special Envoy to South Sudan – Stephen Kalonzo Musyoka – said progress
in intra- African trade through the African Continental Free Trade Area
(|AfCFTA) would spread the benefits of natural resources to the most
deserving areas.
“We must invest in regional
institutions that support mutual political and economic objectives and
hasten regional integration,” said Musyoka.
There were also calls for youth and women to be empowered through training to take part in the oil and gas industry.
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