Thursday , November 26 2020

South Africa: Cape Town pledges $ 1bn Investments in South Sudan oil



South Africa and South Sudan signed a framework agreement Friday calling Pretoria to invest about $ 1 billion (880 million euros) in the troubled oil industry of the world's youngest.

Negotiations will be held to determine the exact framework of this agreement between two state-owned companies, South Africa's Central Energy Fund and Nile Petroleum Corporation in South Sudan.

South East Oil Minister Ezekiel Lol Gatworth said the funds would be used to build refineries and oil pipelines, oil exploration and worker and engineer training.

"When this refinery is completed, it will have a production capacity of 60,000 barrels of oil per day," said South Africa's Energy Minister Jeff Radebe, adding that the investment is expected to reach more than $ 1 billion. dollars for the whole project.

The country does not have its own refineries and relies on Sudan oil refineries and pipelines.

The country's economic lobe

South Sudan produces about 155,000 barrels per day, which is less than half of its production before the December 2013 civil war.

This framework agreement was signed after a three-day conference on "Oil and Energy", organized by South Sudan in Juba, to attract investors.

The government of South Sudan said on Wednesday that signing a peace treaty in September helped revive the oil sector in the country that was deeply affected by the civil war, with production now rising by 20,000 barrels a day. two months.

The production is from 135,000 to 155,000 barrels per day.

The oil sector is the cornerstone of the Sudan-sponsored peace deal, whose economy has also suffered from the slowdown in South Sudan's oil production.

In June, Khartoum vowed to help repair the oil fields in South Sudan.

South Sudan's oil reserves are at the heart of the conflicts that hinder their history before its independence in 2011, and have often helped finance the struggle.

AFP


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