South Sudan needs more investments before taking over oil fields from private operators

(Bloomberg) – South Sudan needs more investment before it can take over oil fields from private operators and should renew contracts with the companies that expire in 2027, according to a national planning body.

State-owned Nile Petroleum Corp. “is still a small entity” and requires funding to reach the capability of companies such as China National Petroleum Corp. and Petroliam Nasional Bhd., from which it had planned to take over licenses as it expands operations, South Sudan’s National Economic Conference said in a summary of recommendations. Officials met for six days through Sept. 9 in the capital city of Juba.

The NEC also listed the renegotiation of exploration and production sharing agreements in 2027, as well as recommending the construction of an alternative pipeline. South Sudan has held talks with Kenya and Ethiopia to truck oil to the coast for export, which would mitigate its dependence on pipelines that run through war-plagued Sudan.