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South Sudan’s oil sector grabs $1 billion investment from South Africa

Recent reports indicate that the South Sudanese oil sector will benefit from $1 billion investment from South Africa.This information was revealed after South Africa’s energy minister Jeff Radebe signed a memorandum of understanding with the Ezekiel Lol Gatkuoth, the South Sudanese petroleum minister. The MoU signed between both states will permit South Africa to take part in the exploration of several oil blocks in South Sudan.

take part in the exploration of several oil blocks in South Sudan.

The investment is said to include the building of a refinery and pave a way for collaboration in the creation of a pipeline for fields located in south of the country.

The ministry added that the money injected by South Africa will assist in the refining and processing of oil and gas, research and development and the transfer of technology.

However, other sources hold that the MoU does not go beyond the call for partnership between both countries who intend the review the possibility of building an oil refinery.

According to Ezekiel Lol Gatkuoth what was signed is mainly a cooperation agreement between the two national oil companies, Nilepet and South Africa Energy Fund though funding is expected from Central Energy Fund (CEF) of South Africa.

The recent accord was arrived at after the East African nation recently hosted the second Africa Oil & Power Conference which was a major attempt by the government to attract investors in the sector. The current moves comes as a result of the fact that authorities are hoping to increase oil production and hopes it will help the state to recover since the economy is largely dependent on oil revenues.

After the ratification of the peace deal in September between the government and opposition, the state is increasing efforts to improve production up to 350,000 bpd, which was the production level recorded in 2011 before the country went into civil war.

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