By Deng Machol
Juba, South Sudan (PAV) – South Sudan has urged both regional and international investors to put money in oil and other minerals in the East Africa’s youngest nation in attempt to re – reinstate its oil production after the country’s five year of civil war.
The country has lifted up a flag of partnership with international investors to invest in the country and connect with their national and local companies in the oil sector.
The South Sudan fifth Oil & Power conference and exhibition held recently in Juba brought the international investors to quench themselves with new opportunities in the energy sectors.
It was attended by international companies and delegations from Asia, Europe, North America and the Middle East.
South Sudan said it prioritizes energy partnerships to enhance exploration and production in 2022. Countries such as South Africa and China, present in South Sudan for several years, are looking to increase their footprints in the high potential market.
South Sudan’s First Vice President Riek Machar said the country is open because it wants to be an economic hub in the world.
“We have a vision to become the economic hub of this part of the world, particularly east and central Africa. This is a land of abundance. We have what it takes to make this country an economic hub. We call upon you to come and invest. We are more oriented to increase production so that from the revenue, we can build our infrastructural base and provide the necessary delivering services such as health, education and clean water,” Dr. Machar told the investors, in his opening remarks.
Machar said they are more oriented to increase our oil production so that from the revenue, they can build their infrastructural base and provide the necessary delivering services such as health, education and clean water.
Dr. Machar encouraged investment in infrastructure projects, manufacturing and the energy and transport sectors.
“We call upon Investors to come and invest in our oil sector to boost production so that we can achieve our power desire which is one of the priorities whether from thermal, geothermal, fossil fuels or from hydro or from solar or biomass, we would want to enhance that because it is a big disadvantage if you don’t have power,” said Machar.
In his keynote address, the Minister of Petroleum Puot Kang Chol said his ministry has launched a competitive tender for the commencement of environmental audits across the industry in order it will help the country review, improve and strengthen environmental laws.
Minister Kang said South Sudan is currently producing 170,000 barrels of oil per day compared to 350,000 before civil war broke erupted.
He said that as peace has returned to South Sudan, more investors should be willing to put their resources in to the country mainly in the oil sector.
“We are looking for investors to come to South Sudan and to connect with our national and local companies” he said.
Meanwhile, Mining Minster Martin Abucha said the country has the potential to export to the world.
“It is definitely the time that we need investment and energy is what we want today,” said Abucha, adding that the transition from fossil fuel to green and clean energy is a demand of the world today and without this transition, we will not be able to improve our livelihoods.
“Importantly, a just transition is what we need and South Sudan has the potential to export not just to Africa but the world. In the mining sector, we have many minerals and we will be the engine for the transition,” said Minister Abucha.
Advocate Sandile Nogxina, special Advisor to South Africa’s department of Mineral Resources and Energy Minister said that his country has identified South Sudan as a strategic partner with a production share agreement and will soon begin Aero magnetic surveys.
“We have identified South Sudan as one of our strategic partners and are leveraging our production sharing agreement. We will soon commence with the Aero magnetic surveys,” said Nogxina. “This is not an isolated exploration project but an integrated one with the opportunities to create a pipeline to export the resources and create refineries to process those resources.”
South Sudan has 3.5 billion barrels of proven oil reserves and 3 trillion cubic feet of natural gas reserves.
NJ Ayuk, Executive Chairman of the African Energy Chamber said a new era of regional investment and development is in sight.
“South Sudan and the industry are at a crossroads with global forces and industry forces and for citizens asking for improved local content. Oil and gas resources can be used to profit the nation,” said Ayuk. We are at a cross roads five years later when we are looking at licensing rounds, because it is still the most undeveloped and underexplored region; and at a cross roads when we ask how do we increase production, improve local content.”
“We have got to be better. We have to change how it is. It is important that we start tapping into untapped reserves, not just oil but young people,” Ayuk added.
Despite the 2018 revitalized peace deal, South Sudan is still battling a fragile economy.
