New Discovery Confirms South Sudan’s Immense Oil Potential
…The country sits on 3.5bn proven oil reserves with 70% under-explored
A China National Petroleum Corporation (CNPC) -led consortium has made a 300 million barrels of recoverable oil discovery in South Sudan’s northeastern Upper Nile state, the African Energy Chamber confirmed yesterday. It said that the discovery is almost as much as the Oyo Discovery announced earlier this month in Congo.
The CNPC is a major national oil and gas corporation of China PR and one of the largest integrated energy groups in the world. With Its headquarters in Dongcheng District, Beijing, the CNPC was ranked fourth in 2017 Fortune Global 500, a global ranking of the largest corporations by revenue.
The Chamber said exploration well was drilled at a total depth of 1,320m near the Adar oilfield in Block 3, operated by the Dar Petroleum Operating Company (DOPC), which includes CNPC, Petronas, Nilepet, Sinopec and Tri-Ocean Energy.
Nj Ayuk, executive chairman at the Chamber and CEO of the Centurion Law Group, said the discovery is a remarkable achievement for South Sudan. “Since independence, South Sudan has worked tirelessly to bring back damaged fields to production, and especially encourage exploration.
“Their effort to maintain peace and stability and a safe environment for investors has paid off. We have always believed that stability goes hand in hand with economic prosperity. Such a large discovery confirms the huge potential of South Sudan in oil & gas just before the country launches a new licensing round in October,” the Chamber quoted him
South Sudan has signed earlier this year an exploration and production sharing agreement (EPSA) with South Africa’s Strategic Fuel Fund for the highly prospective Block B2. The move was part of South Sudan’s strategy to diversify its basket of investors and encourage further exploration.
While the country sits on over 3.5 billion of proven oil reserves, the third-largest in sub-Saharan Africa, 70% of its territory remains under-explored. To boost exploration, South Sudan will be launching a new and much-awaited petroleum licensing round at the upcoming Africa Oil & Power conference in Cape Town on October 9th, 2019.