South Africa is still eyeing to finance $1 billion in South Sudan’s oil sector, African Daily Voice has learnt.
Last year, the two governments signed a Memorandum of Understanding on the Joint Investment Project spanning across the oil value chain in South Sudan, starting from an exploration block to a pipeline, a new refinery and finally, to a new terminal.
According to Energy Minister Jeff Radebe, this project will unlock the reserves of South Sudan to be self-sufficient, serve regional markets and bring value, financially and strategically, for South Africa and South Sudan.
“This is not only for South Sudan but for the East African region, including Ethiopia, Tanzania, Uganda and Kenya, with Sudan creating a robust market that facilitates trade and other investment opportunities,” said Radebe.
Briefing the media on Thursday, Radebe said the project is still at the feasibility stage, where a number of assessments are still being made.
This feasibility has been approved by the SFF [Strategic Fuel Fund Association] Board. However, at this stage, the project does not require any Cabinet or National Treasury approvals.
“The stated $1 billion is the estimated cost of the full project, including the oil block, pipeline and refinery which will be spread over a period of 10 years. The amount is an indicative figure at this stage.
“As with similar projects of this nature, upon completing the feasibility study, the project has a potential to attract other strategic partners and investors, which may include South Sudanese and South African companies,” Radebe said.