South Sudan and South Africa have officially signed an oil deal worth $50 million.
The agreement which was inked in Juba this morning by South Sudan’s Minister of Petroleum and the South African Minister of Energy covers three major projects, namely: oil exploration and production, building of an oil refinery and the construction of a pipeline.
According to the documents, the deal’s lifespan is six years from the date signing.
The Minister of Petroleum, Ezekiel Lol, said in 2018, the government asked South Africa to invest $1 billion into South Sudan for the construction of a refinery, a new oil block and a pipeline.
He said this deal provides money just for the exploration, and there are expectations that oil production will begin within the six years time-frame.
“You know the exploration period is six years starting from today… if we can get the oil within the first year then we can start producing, but the maximum period that we will use for exploration is six years,” Ezekiel Lol said.
The Nile Petroleum company and the South African Strategic Fuel Fund are expected to coordinate efforts in producing oil within the provided timeline.
“We are looking at $1 billion throughout the duration of this three projects, but we are have committed about $50 million for all the processes that are involved in exploration,” said Jeff Radebe, South African Minister of Energy.
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