Sunday , October 17 2021

South Africa: Cape Town promises $ 1 billion investment in De Sudan oil



South Africa and South Sudan have signed a demanding framework agreement on Pretoria to invest around $ 1 billion (880 million euros) in the troubled oil industry of the youngest country in the world.

Discussions will be held to define the exact framework of this agreement, which ended between two state-owned companies, the South African Central Energy Fund and the Nile Petroleum De Sudan Corporation.

The Minister for the South Sudan Petroleum, Ezekiel Lol Gatkuoth, said the money will be used for the construction of refinery and oil pipelines, oil exploration and training of workers and engineers.

"When this refinery has finished, it will have a production capacity of 60,000 barrels of oil per day," said South Africa 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 own its refineries and relies on Sudan refineries and pipelines for exporting its oil.

The economic lungs of the country

South Sudan produces around 155,000 barrels a day, which is less than half of its production before the home war began in December 2013.

This framework agreement was signed after a two-day conference on oil and energy organized by South Sudan in Juba to attract investors.

The South Sudan government said Wednesday that peace agreement signs in September helped regenerate the country's oil sector, which was severely affected by the home war, with a production already rising by 20,000 barrels a day only two fis.

A production of 135,000 to 155,000 barrels per day was produced.

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

In June, Khartoum promised to help repair South Sudan oil fields.

South Sudan oil reserves are at the heart of the conflicts that stop its history, even before its independence in 2011, and often helped fund the fighting.

AFP


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