South Sudan’s Petroleum Minister Joins African Energy Week (AEW) 2024 Amid Strategic Oil Sector Development

South Sudan’s energy sector is undergoing a transformative phase, marked by strategic agreements focused on developing export routes, boosting refining capacity and expanding midstream infrastructure. To secure new investment in support of these goals, South Sudan’s Minister of Petroleum Puot Kang Chol will speak at the African Energy Week (AEW): Invest in African Energy 2024 conference – scheduled for November 4-8 in Cape Town. During the event, Minister Chol will discuss the nation’s progress in expanding its oil export infrastructure and explore broader investment opportunities in South Sudan’s energy sector.

One of the primary areas of focus for South Sudan is increasing regional petroleum trade. A key project that is currently in the planning stage is a $778-million infrastructure initiative developed in collaboration with Ethiopia. Aimed at enhancing oil transportation, the project includes the construction of a 220-km road linking Upper Nile State in South Sudan to the Ethiopian border. A second pipeline will also be developed to connect South Sudan with the Port of Djibouti. During AEW: Invest in African Energy 2024, Minister Chol will provide insight into the strategic investment opportunities across this project.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit http://www.AECWeek.com for more information about this exciting event.

South Sudan is pursuing an ambitious plan to increase its oil production to 230,000 barrels per day (bpd) in the short term, with a long-term goal of reaching 450,000 bpd. Despite being East Africa’s only major oil producing nation, the country currently relies heavily on pipeline infrastructure through Sudan. The existing PetroDar pipeline, which currently transports approximately 100,000 bpd of South Sudan’s Dar Blend crude oil from Blocks 3E and 7E to Port Sudan, has encountered significant challenges, including stoppages and gelling issues. These challenges could impact the country’s ability to efficiently achieve these production targets. As such, the country is focusing on projects that reduce this reliance by offering diverse export options for South Sudanese oil.

Specifically, South Sudan recently entered into discussions with China National Petroleum Corporation (CNPC) to advance the cross-border pipeline project with Ethiopia. These discussions include plans to increase crude oil production, build a new refinery and strengthen the oil distribution network, which is expected to significantly enhance South Sudan’s energy infrastructure and its ability to export oil efficiently. The overall aim is to maximize output at South Sudanese blocks, boosting regional trade and development. To further reduce the country’s dependency on existing infrastructure, South Sudan’s national oil company Nile Petroleum Corporation signed a Memorandum of Understanding (MoU) with Chinese firm Shengli Oilfield Keer Engineering and Construction Company. The companies are looking at building a modern oil refinery and storage facilities in the country, marking a step toward enhancing the nation’s energy capacity and attracting investment.

To address export challenges and bolster its midstream capacity, Nile Services and Logistics Company, a subsidiary of Nilepet, signed a MoU with oil and gas company Zenith Energy. This partnership focuses on exploring opportunities for constructing storage tanks, pipelines and crude oil storage facilities, which are essential to strengthening South Sudan’s energy security infrastructure and supporting the nation’s efforts to fully harness its oil resources. Alongside this, the Greater Nile Oil Pipeline, with a capacity of 250,000 bpd, remains a critical component of the country’s oil export strategy.

“South Sudan remains a highly attractive destination for investment, especially in its oil sector. The government’s proactive measures to enhance oil infrastructure, combined with strong partnerships with industry leaders, demonstrate a clear commitment to unlocking the country’s vast resources and driving economic growth. These initiatives present major opportunities for investors looking to engage in a market with immense potential,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

At AEW: Invest in African Energy 2024, Minister Chol will discuss South Sudan’s advancements in oil export infrastructure and broader investment opportunities in the country’s energy sector. He will provide details on the ongoing projects and facilitate discussions with global stakeholders on potential investment avenues.

Distributed by APO Group on behalf of African Energy Chamber.