South Africa’s minister of energy, Jeff Radebe and Ezekiel Lol Gatkuoth, his South Sudanese counterpart for petroleum, said South Africa will invest $1 billion in South Sudan’s oil sector. The funding will also cover the construction of a refinery.
A memorandum of understanding which will also involve South Africa taking part in the exploration of several oil blocks was signed by the two ministers.
Currently, South Sudan’s oil industry is dominated by Asian firms including China National Petroleum Corporation (CNPC), Malaysia’s Petronas and India’s Oil and Natural Gas Corporation (ONGC Videsh).
South Africa’s minister of energy said “when this refinery is complete, it will have the capacity of producing 60,000 barrels of oil per day”.
Gatkuoth, revealed that the deal also offers avenues for cooperation in the construction of a pipeline to serve fields located in the south of the country.
The minister of petroleum for South Sudan revealed “it was instrumental to have a new pipeline” in the country. South Sudan exports its crude through another pipeline that goes to a port in neighbouring Sudan to the north.