Friday, July 12, 2024

South Sudan: Strong Partnerships to Drive Oil Sector Growth


Holding interest in all exploration and production assets in South Sudan, South Sudan’s state-owned Nile Petroleum Corporation (Nilepet) holds eight joint ventures (JVs) with international partners. These partnerships are set to bring international expertise, technology and energy infrastructure to the sector while playing a critical role in supporting the growth of South Sudan’s oil market.

Partnerships and JV initiatives will be a key point of discussion during this year’s South Sudan Oil&Power (SSOP) 2024 conference and exhibition. This year’s summit presents a key avenue to foster dialogue and strengthen relations between South Sudan and its partners in the oil sector.

SSOP 2024 positions South Sudan at the center of investments and partnerships in the East African energy landscape. Taking place in Juba on June 25-28, 2024, the conference and exhibition invites investors to explore and engage with opportunities across the hydrocarbons, renewable energy and power sectors. To sponsor or participate as a delegate, please contact

The Engine of East African Growth

Through Nilepet’s JV with South Africa’s Strategic Fuel Fund – the Nile Orange Energy Project – the NOC and its partner recently completed its initial survey over South Sudan’s Block B2, setting the stage for further exploration activities. The survey was conducted by the South Sudan Geophysical Company, demonstrating the potential to drive local capacities being developed as part of international alliances.

In June 2023, Zimbabwe’s Energy and Power Development Minister Magna Mudyiwa engaged South Sudan to support sizeable oil and gas finds expected in the country’s Muzarbani area. The Minister highlighted South Sudan’s expertise in the sector to offer advice on regulations, legal structures and handling of environmental issues to optimize oil recovery from the Cabora Bassa Basin in Zimbabwe’s Mashonaland Central Province.

South Sudan’s International Appeal

Nilepet met with the China National Petroleum Corporation last year to discuss renewing a production agreement that expires in four years. The meeting emphasized the need to increase oil production in Blocks 3 and 7 in the Paloch oil fields in the Upper Nile region of South Sudan, which is operated by the Dar Petroleum Oil Operating Company consortium. The consortium features participation from Chinese, Malaysian and Egyptian companies as partners.

Meanwhile, poised to export refined petroleum products to the wider East African region, development of the Bentiu Refinery is being overseen by SNP Group, a JV between Nilepet and Russia’s Safinat. The JV is currently looking to boost production and expand regional distribution from the refinery, which currently produces between 3,000 and 10,000 bpd.

In March 2023, Nilepet met with the Abu Dhabi National Oil Company to discuss a strategic vision for sustainable, reliable energy production and a commitment to an inclusive energy transition. With a focus on capacity building and partnerships, the companies discussed how South Sudan can leverage its oil resources to drive socioeconomic development on the back of mid- and downstream expansion.

Partnerships at the Center of Development

Nilepet is currently engaged in the SIPET Engineering and Consultancy Services JV, holding an 80% share along with Qingdao China Petroleum Geotechnical Engineering Company, which holds the remaining 20%. The NOC is also a majority owner in the Nile Delta JV along with Nigeria’s Niger Delta E&P, who own a 51% and 49% share, respectively. JV Nile Drilling Services is an operating company in South Sudan that is 90% owned by Nilepet and 10% owned by China’s Kerui Petroleum, while Nile-SLC is held by Nilepet (25%), South Africa’s CES Managed Services (36%) and Moloko Investment Group (49%).

In operations and maintenance, Nilepet holds a 31% interest in Dietsmann Nile S.A. Ltd. along with Italy’s Dietsmann Technology, which holds the remaining 69% interest. For technical support, Nilepet is engaged with Sudan’s Eyat in the NIYAT Oil Field Services JV, which hold a 40% and 60% stake, respectively. Meanwhile, the Nile Delta Systems JV is 51% owned by Nilepet while the remaining 40% stake is held by Poland’s Essesco.

Distributed by APO Group on behalf of Energy Capital&Power.

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