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South Africa: Cape Town pledges $ 1 billion in oil to South Sudan



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

Negotiations will be held to determine the precise framework of this agreement between the two state companies, the South African Central Energy Fund and the Nile Oil Company of South Sudan.

South Sudan's Oil Minister Hezekiel Lol Gatkuoth said the funds will be used for the construction of a refinery and oil pipeline, oil exploration and training of workers and engineers.

"When this refinery is completed, it will have the capacity to produce 60,000 barrels of oil per day," South African Energy Minister Jeff Radebe said. The investment is expected to be more than $ 1 billion. dollar for the whole project.

The country does not have its own refineries and relies on Sudanese refineries and pipelines for the export of its oil.

Economic lung of the country

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

This framework agreement was signed after a three-day oil and energy conference in Juba to attract investors.

The South Sudan government said on Wednesday that the signing of a peace agreement in September started to revive the oil industry of the country, which was deeply affected by the civil war, but the already rising production with 20,000 barrels per day continued. Two months.

Production was 155,000 barrels per day from 135,000.

The oil sector is the cornerstone of the Sudan-backed peace treaty, which is also affected by the slowdown in oil production in South Sudan.

In June, Khartoum vowed to help South Sudan's oil fields repair.

The oil reserves of South Sudan are at the center of the conflicts that set their history even before their independence in 2011, and often help them finance the war.

AFP


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