Home | News    Tuesday 7 March 2017

Nigerian oil entity to explore South Sudan Block

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March 6, 2017 (JUBA)- Nigeria’s Oranto Petroleum Ltd. said it signed oil sharing agreement with South Sudan covering the country’s Block B3, earmarking up to $500 million to explore the oil in the region.

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A worker at the power plant of an oil processing facility in South Sudan’s Unity state on 22 April 2012 (Photo: Reuters)

In the first three years, Oranto said it would do airborne geophysical surveys in the 25,150-sq km block and assess existing data held by the government and former operators, among other activities.

"Oranto Petroleum will invest $500 million to develop South Sudan’s Block B3, launching a comprehensive exploration campaign starting immediately," the oil company said in a statement.

Since its independence, South Sudan has relied on oil for all income—a situation that has significantly compounded the ongoing political and economic instability, due to the fall in crude oil prices.

South Sudan got the lion’s share of the oil when it split from Sudan in July 2011, but it’s only export route is through Sudan, giving Khartoum leverage and leading to ongoing pricing disputes.

According to South Sudanese officials, production in the past reached as high as 350,000 bpd, but fell after a dispute with Sudan over fees for pumping South Sudan’s crude through Sudan’s export pipeline, which led South Sudan to halt oil production in 2012.

Oil production in South Sudan has, however, been affected by the conflict that erupted in 2013 after a political disagreement between President Salva Kiir and his then deputy, Riek Machar,

Even after restarting production, it never recovered to those levels, but it dropped to 245,000 barrels per day after the outbreak of the civil conflict hindered production in the oil-rich areas of the north.

“We believe the petroleum resources of Block B3 are vast. To reach our target of more than double current oil production, we need committed new entrants like Oranto,” South Sudan’s Minister of Petroleum, Ezekiel Lol Gatkuoth told reporters in the capital, Juba.

“The government is working hard to reinvigorate the petroleum industry in South Sudan by creating an enabling environment for International oil and gas companies to invest and operate. It is up to the oil companies to come in, explore and produce,” he added.

The block is highly prospective, with productive parts of the Muglad Basin to the northwest and estimated reserves in place of more than 3 billion barrels of oil. The block is categorized as low risk, high reward. Under the EPSA, Oranto will be the technical operator and 90% shareholder of the block, with Nilepet holding a 10% stake.

“It’s an honor to formalize our entry into South Sudan with this EPSA,” said Prince Arthur Eze, founder and chairman of Oranto Petroleum.

“Our company is at the vanguard of African firms exploring and developing African assets. This is the beginning of a long-term collaboration with Nilepet, the people of South Sudan and our partners to bring to light the immense potential of Block B3. Oranto is committed to an aggressive exploration work program that will benefit all stakeholders,” he added.

The 120,000-square kilometer Block B was reportedly split by the government into the B1, B2 and B3 blocks in 2012. In Block B3, Oranto will work alongside the B1 and B2 partners, which include Total.

South Sudan is an established, world-class petroleum producing region, whose territory includes a large part of the Cretaceous rift basin system that has proved petroliferous in Chad, Niger and Sudan.

(ST)

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  • 7 March 2017 09:08, by Midit Mitot

    I don,t think there would be any single country in Africa not to milking South Sudan resources, Nigerian, go-head, GOD has given you a country with thugs and blind leaders, take whatever you can.

    repondre message

  • 7 March 2017 09:50, by Eastern

    South Sudan under Kiir has been duped by a Nigerian fraudster, the famous 419er! Nigeria 90%; South Sudan 10%. Cancelling this deal will cost South Sudan a foot!!!

    repondre message

  • 7 March 2017 10:25, by aborigin

    If true then it is a big blunder unless it is done to make the Americans more bitter!!, i thought those blocks were given to American firm.

    repondre message

  • 7 March 2017 10:28, by Kush Natives

    I am against this stupid ideals! If China didn’t built any infrastructure since the exploration of the oil in Ruweng Territory since 2005-12. Then, what’s the hell Nigerian an Oil companies will improve here? There’s no single Hospital in Ruweng since Chevron started it’s oil exploration in the area in 70s, till now. So, the question is here. Do (we) the government adds the toxic and effect an oil

    repondre message

    • 7 March 2017 11:28, by Eastern

      Kush Natives,

      Go and ask these very useless questions to Kiir and El Tabani Deng. Don’t waste this space here!!!!!

      repondre message

      • 7 March 2017 11:40, by Kush Natives

        Eastern,
        I didn’t thought that questions was directed to you with that much concerns. Thanks for your apology!

        repondre message

  • 7 March 2017 10:39, by Kush Natives

    con- pollutions affect an environment, including creatures, in which habituated it? Sometimes, one felt short of an expression! Because, we’re appeared to think on our benefits rather then their benefits. The populations of now Ruweng state, demanding the government and an oils companies to build or provides the following items:

    repondre message

  • 7 March 2017 10:55, by Kush Natives

    a) 4 Hospital facilities & clinics across the state.
    b) controls all toxic, contained and disposal it in confined spaces, because most of those toxic are corrosive.
    c) Training facilities. In order to educate the populations of their movement, around the dangerous areas that are confines. Whether, its animal or human beings! I will probably stop here! I will be back soon.....

    repondre message

  • 7 March 2017 14:04, by Freedom Advocate

    What are the names of those oil wells you claim to be in the defunct Ruweng state you’re shamelessly talking about?
    Anyway, those are bias things that wouldn’t materialize.
    Where will those Ogas of Nigeria do that assessment or their asses will flame up with bullets by mighty freedom fighters?
    Good luck Igwe of Nigeria!!

    repondre message

  • 8 March 2017 08:22, by truth teller

    so 90% for Nigeria

    10% for South Sudan
    from 10% --- 5% for Kiir
    3% ---- for Dinka relatives of Dinka council
    1% ---- for parties, wifes and houses in Canada

    1% for people of South Sudan ... Mainly used in war and killing the local peoples

    repondre message

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