Oil producers need a variety of partners and investors standing to win by entering the market through a licensing round by 2022.
South Sudan, independent for 11 years and an oil producer for more than four decades, has long welcomed international oil companies – both as part of Sudan and as an independent nation. But today, the sector needs a capital boost and innovation. With an economy dependent on aid and oil revenues, we believe that energy should play a greater role in advancing interests, economic growth and job creation in South Sudan. This can only happen if the country deepens its global partner pool.
It was Chevron who made commercial discoveries in the Unity field in 1980, and bp and Shell which refined southern Sudanese oil at Port Sudan on the Red Sea coast. American, French and Canadian companies took stakes in oil development in Sudan before the split, despite longstanding conflicts in the south.
South Sudan, as the newest country in the world over the past decade, has attracted goodwill and investment from partners including the United States, Canada, United Kingdom, Norway, European Union, China, Japan and others. However, conflict and corruption eroded trust among Western countries, and American sanctions played an important role in further restricting trade, prompting a limited group of countries and companies to actively participate in the sector.
This lack of options suppresses innovation, competition and empowers local companies to grow their own energy sector. South Sudan needs more partners, and we see a bright future for those willing to fully explore the region’s only mature oil producer – as we see it, the gateway to East Africa’s energy.
OPENING LICENSE REOPENING THE DOOR
Today, the Ministry of Petroleum of the Republic of South Sudan hopes to reopen its doors to global partners through the country’s first open licensing round, through the fifth edition of South Sudan Oil & Power (SSOP) (https://bit.ly/3wZqWXu) conference in September and at African Energy Week (AECWeek.com) in October.
The sector now consists of three ‘joint operating companies’ producing with various shareholdings consisting mainly of the national oil companies of Asia – Petronas of Malaysia, CNPC of China and ONGC of India – as well as Nilepet, the national oil company, and two companies. exploration. companies: Strategic Fuel Fund (South African state-owned company) and Oranto Petroleum (Nigerian private company).
To boost exploration and production, the Ministry of Industry markets 14 exploration permits to oil and gas companies and invites them to visit the country, explore assets in its new data facility, and have discussions on 13-14 September 2022 in Juba at the SSOP event.
DOING BUSINESS IN SOUTH SUDAN
Currently, there is a vacuum, created by US trade restrictions on technology exports to oil and gas companies in South Sudan and the overall reluctance by Western countries to engage with South Sudanese leaders and companies. American sanctions have a much broader impact than their immediate objective, with outside companies feeling greater risk in transacting in US dollars and doing business in the country. The result: the vacuum grew stronger and South Sudan’s partner pool shallower, despite the fact that restrictions were selective in its application.
The lack of investment options and partnerships also hinders the development of local companies. Incubating a strong local private sector requires multiple operators and project leaders to tender and invite participation. Access to technology and international capital supports private sector growth. Without a competitive, growth-oriented and diverse group of investors, local empowerment and capacity building will be hampered.
Capital & Energy Power (ECP) (https://EnergyCapitalPower.com), in organizing SSOP conferences since 2017, has worked closely with the government as well as international and local companies. We have seen that it is possible to do business in South Sudan and that global companies such as Schlumberger, Stanbic Bank and many others are achieving success. Investors in joint operations company CNPC, Petronas and ONGC have faced tough times during the post-independence civil war, and have now reached production in most of the fields closed since 2013.
It is imperative that existing partnerships remain intact and that South Sudan attracts more companies to its high potential area. Improving relations between South Sudan and the US is fundamental, but so is a realistic view of what can be done in the country at this time. We see the government as motivated to grow the economy, build capacity and provide jobs, as well as optimize and expand established key industries. We urge companies from the US, Canada, UK, European Union, South America and elsewhere to look back at South Sudan and understand how they can do business there.
GROWING WITH EAST AFRICA’S LARGEST OIL PRODUCER
The opportunities are huge in South Sudan. As East Africa’s only major oil producer, South Sudan has an advantage over its neighbors. With 90% of the country’s reserves untapped, the licensing round is an open door to discovering more at a very low initial risk. Trading restrictions, security and exposure to other risks need to be fully understood and do not apply equally in all areas. We invite independent oil companies and service providers in particular to register for the SSOP event here (www.SSOP2022.com) and to see how they can grow with the country.
ECP stands with any organization that wants to work with South Sudan for a brighter and richer future. The more partners South Sudan has, and the more varied they are, the faster the potential can be unlocked – and the more growth and profits there can be for partner investors.
Join us in Juba September 13-14 for this face-to-face event. Online speaker positions and online live streaming available. Contact our sales team at [email protected] to see how you can promote your organization as a sponsor or exhibitor at SSOP 2022.
Distributed by the APO Group on behalf of Energy Capital & Power.
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South Sudan: Investing in Renewal of the Region’s Largest Oil Producer
Source link South Sudan: Investing in Renewal of the Region’s Largest Oil Producer