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South Sudan pegs economic recovery on resuming oil exports

Friday November 16 2018
oil

An oilfield in South Sudan. The country plans to hold its second Oil and Power Conference as it seeks investors in the energy sector. PHOTO | AFP

By JULIUS BARIGABA

South Sudan will host its second Oil and Power Conference next week as it looks to rebuild its stunted economy following a five-year civil war that led to the shutdown of oil production.

Oil is the country's biggest export and foreign exchange earner.

Following the peace deal signed in Sudanese capital Khartoum in July this year by the warring factions, Juba says it is now open to more investments in the sector.

Petroleum minister Ezekiel Lol Gatkuoth said the country is currently seeking explorers for blocks B1 and B2 in Upper Nile, while Nilepet, the state oil company, is looking for partners for joint ventures in energy.

South Sudan government hopes investments in oil technology and power infrastructure will revive the economy.

Before the war broke out in December 2013, the country used to produce 350,000 barrels of oil per day (bpd).

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Currently, oil output is at 130,000 bpd with the government hoping to get to 280,000 bpd before the end of the year.

Mr Gatkuoth said more oilfields are line up for exploration as about 70 percent of potential crude remains untapped.

Industry experts are optimistic that the signing of the peace deal and resuming of oil production will help in reviving the sector.

“Exploration of oil is staging a remarkable comeback in South Sudan,” says NJ Ayuk, an energy and oil lawyer and founder of Centurion Law Group.

Mr Ayuk, the author of Big Barrels: Africa Oil and Gas and Its Quest to Prosperity, adds that search for oil in new fields is likely to lead to more discoveries.

The government, keen on reviving the oil sector which funds about 98 percent of the national budget, held its first Oil and Power Conference in 2017 amidst pessimism from observers due to the war.

“I was sceptical when the Minister [of Petroleum] told me he wanted to resume production in the oilfields that had been shut down because of the crisis. South Sudan proved me wrong and they did it. So I am hopeful,” says Mr Ayuk.

The conference is set for November 20 to 22, Mr Gatkuoth said.

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