Newsdeck

Newsdeck

S. Africa Signs for South Sudan Oil Block After $1 Billion Plan

South Africa signed a deal on an oil block in South Sudan as part of a $1 billion investment in the country emerging from civil war.

The countries signed an exploration and production sharing agreement for block B2, the second such contract since South Sudan’s independence seven years ago. The deal will help restore oil output to levels of around 350,000 barrels a day, according to South Sudan Oil Minister Ezekiel Gatkuoth.

South Sudan is focusing on increasing crude production by using oil blocks that were halted during its civil war. South Africa in November reached an initial agreement to invest $1 billion in its oil sector and Energy Minister Jeff Radebe said in March the move is part of an effort by the country, which is reliant on imports to meet fuel demand, to secure crude supplies.

Total SA held a license for block B, a 120,000-square kilometer area the size of the U.S. state of Pennsylvania, but ceased activity in 1985, according to the ministry. The government in 2012 split the block into three licenses: B1, B2 and B3.

DM

Gallery

Please peer review 3 community comments before your comment can be posted

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Daily Maverick Elections Toolbox

Feeling powerless in politics?

Equip yourself with the tools you need for an informed decision this election. Get the Elections Toolbox with shareable party manifesto guide.