African energy firms back South Sudan oil development plans

By Charles Lotara
Amid the coronavirus pandemic, African energy firms have backed plans by the South Sudan government to develop the transient domestic oil industry.
This came contrary to the report that the oil price crash that began with the Saudi oil price war on Russia and then deepened in the wake of COVID-19 could cripple the country’s plans to upgrade the industry of its major export.
Africa Oil & Power (AOP), one of the continent’s major investment platforms for the oil, power, and energy sector say although the initiatives were delayed, South Sudan’s commitment to energy prosperity has not weakened.
The South Sudan Oil and Power Conference & Exhibition, the country’s official energy event has been acknowledged to be a key driving force behind the industry’s resilience and potential growth.
The annual conference, which seeks to highlight South Sudan’s ambitious plan to implement a solid local content framework and create an enabling environment for partnership and investments from international firms has been rescheduled to June 2021.
The conference organized under the theme #InCountryValue is expected to bring together executives from the local as well as regional and international markets.
AOP says as an oil-producing region, South Sudan was more determined to attract foreign investment while building its local capabilities, thanks to regained peace and an improved business environment.
In the previous years, the conference received ministerial and level commercial missions, and official representation from the United States, Norway, Egypt, Sudan, Kenya, Ethiopia, Equatorial Guinea, and South Africa.
AOP and the African Energy Chamber are hosting a special webinar on July 27 under the theme Preserving Economic Progress in the Face of COVID-19, an event meant to showcase South Sudan’s drive to increase production.
Supported by Afrika Umoja, the webinar will address COVID-19 impact on South Sudan’s exploration opportunities, as well as a forthcoming licensing round to be launched later this year. Discussions will revolve around the resumption of production slowed by the pandemic, foreign investment, and long-term capacity building and power projects.
The webinar session will feature Robert Mdeza, the Chief Executive Officer of Trinity Energy, Makear Michael Dot, Chief Executive Officer at Nile Petroleum Services, Felix Ataro, Head of Oil & Gas and Public Sector at Stanbic Bank Kenya, Jaman Salaman Peter, Geoscience Team Lead at Nilepet, and Director General for Planning and Projects of South Sudan Electricity Corporation Jacob Manyuon Deng.
The South Sudan oil industry recovery trajectory is not all smooth, however. The country that gained independence from Sudan nearly a decade ago pays fees to the northern neighbour to get its oil to ports. The country has bargained to defer $6 a barrel of the $24.10 a barrel it costs to ship the crude.
“It’s like a loan and when the prices improve, we will pay all,” Awow Daniel Chuang, the Undersecretary in the Ministry of Petroleum told Bloomberg in an interview. South Sudan pumped 350,000 barrels a day before the 2013 conflict and had targeted this year to boost activity through a licensing round, and exploration by private companies and investment from South Africa. The bidding round will now be deferred to the first quarter of 2021.
South Sudan plans to boost output were also hampered because the country is an OPEC+ participant expected to contribute to the cartel’s wider supply-cut effort.
“We have been getting pressure from OPEC and, of course, we understand the background of this and we are working also to balance our needs, and at the same time cooperate,” Chuang said. “We are always making sure that we cooperate with OPEC so that we control the supply.”