Oil Exploration Blocks to be Auctioned in South Sudan

Oil Exploration Blocks to be Auctioned in South Sudan

“We are now working on a concession map, and this will lead us to the initiation of the licensing for the new annexed blocks, and we are hoping that by the end of this year that we will have a licensing round,” Mohamed Lino Benjamin, petroleum and mining ministry director general of petroleum said in a Reuters report.

South Sudan — after starting and stopping oil production due to disputes with Sudan — is looking to auction off oil licenses for an undisclosed number of exploration blocks.

According to Reuters, barrel production per day has been leveled down to 190,000 compared to the 240,000 barrels per day estimated in September.

While eNews Central Africa reported that Sudan made $236 million from exporting South Sudan’s oil, South Sudan has earned upwards of $1.3 billion from oil production.

The country is looking to heighten the reach and capacity of its oil industry by joining forces with Kenya and Uganda, solidifying new pipelines, Reuters noted. The Lamu port, a pipeline that would link South Sudan and northern Kenya would allow for crude oil exports and cancel out South Sudan’s exportation reliance on Sudan.

Precaution in regards to who will be given access to the exploration blocks is a pressing issue that the ministry is closely observing. According to the report, technical know-how is being placed above bidders with the capital to invest.