South Africa has signed an exploration and production sharing agreement (EPSA) with South Sudan for Block B2
The deal, which is strategic for South Africa as an energy consumer, will see Block B2 operated by the state-owned Strategic Fuel Fund (SFF), the Ministry of Petroleum and Nilepet - the national oil company of the Republic of South Sudan
This is the second EPSA signed since South Sudan gained independence in 2012 and shows progress for the country’s oil industry as production resumes at existing oilfields and new exploration begins.
Under this new EPSA, which includes a six-year exploration period, the SFF will launch with great prospectivity a comprehensive aero gravity survey exploration campaign, seismic acquisition and drilling wells. The SFF will also invest in capacity building initiatives, training South Sudanese citizens, investing in social and community development projects, and ensuring empowerment of local content and women.
Ezekiel Lol Gatkuoth, minister of petroleum, said, “The petroleum resources of Block B2 are vast. For South Sudan to reach its target of bringing back production levels of around 350,000 barrels of oil per day (bopd) and beyond, we need committed new entrants like the SFF.”
“South Sudan has great potential, yet our country remains vastly under-explored, and we believe the entry of new players like the SFF will lead to new world-class discoveries very soon given the aggressive exploration program and great petroleum viability of Block B3. This will support South Sudan’s economic revival and improve trade with other African countries,” he added.
“Jeff Radebe, South African energy minister, stated, “South Africa has supported peace and economic development in South Sudan since the country’s independence and this is the continuation of long-term cooperation between both our countries and people. Investment is vital to guaranteeing the economic progress of South Sudan”
The B2 area includes productive parts of the Muglad Basin and is part of the 120,000 sq km Block B divided into three in 2012. There has been a lot of interest in the Block B acreages of South Sudan since Oranto Petroleum entered Block B3 in 2017. Much of the oil and gas blocks in South Sudan are yet to be fully explored and resources assessed.
