Nilepet makes bold plans for taking over oil exploration
Chol Deng Thon, Nile Petroleum Corporation’s managing director, has revealed that the outfit is mulling a takeover of the country’s oil exploration by 2027.
At a briefing to the Reconstituted Transitional National Legislative Assembly’s (TNLA) petroleum committee yesterday, Chol said plans are in top gear to take over this mandate in the next five years.
He told the committee that NilePet was prepared and had a national task force in Nile Petroleum Corporation’s Vision 2027, which he said would become operational soon.
He added that they had identified the human resource needs, other resources, equipment, and software required to take over the business when the time comes. This paves the road for them to become an operator in the remaining four to five years.
Team ready
“Our team is ready and they are also working with the service companies to realise the vision of 2027. So yes, we are ready and, hopefully, with the support of honourable members of the petroleum committee and the ministry of petroleum, we will be able to realise the vision 2027, and we will become an operator,” Chol stressed.
“There will be a dedicated and designated company that will be the operator; not the current Nile Pet, per se, but that will be a subsidiary and a company of Nile Pet. So, vision 2027 is realizable,” he added.
James Lual Deng Kuel, the chairperson of the petroleum committee, said that as members of parliament, they would support NilePet in taking over the country’s oil production and exploration by 2027.
“We as the members of the parliament and members of the committee, are looking forward to supporting the Nile Pet not only for us at the end of 2027 to extend the exploration and production agreement between the GOCs and the government,” he said.
James stressed that foreign firms have dominated oil exploration in South Sudan and that, as a nation, it is time to take over.
“We need to take over and the only entity that is concerned in taking over is NilePet, which is the government’s commercial wing in oil production and oil activities.”
The NilePet boss also briefed the committee about the company’s strategic plan and policy framework, as well as the status of processing fees paid to the consortiums under the TFA.
In 2019, South Africa and South Sudan signed an Exploration and Production Sharing Agreement, which is important for South Africa as a user of energy.
Block B2 will be operated by the state-owned Strategic Fuel Fund (SFF), the Ministry of Petroleum, and Nilepet, the Republic of South Sudan’s national oil firm, according to the deal.
This is the country’s second EPSA since its independence in 2011, and it demonstrates progress for the country’s oil industry as existing oilfields are restarted and new exploration began.
Under the agreement, SFF and Nilepet were to launch a comprehensive aero gravity survey exploration campaign, seismic acquisition, and drill wells with high prospects as part of this six-year exploration agreement. The SFF will also fund capacity-building efforts, citizen training, social and community development projects, as well as ensure local content and women’s empowerment.
In 2018, the former Minister of Petroleum, Ezekiel Lol Gatkuoth, and Petronas’ South Sudan Country Chair, Mr. Janin, of the Malaysian national oil company, Girie, also extended the company’s exploration and production sharing agreement (EPSA) for Blocks 3 and 7 for six years for the resumption of oil production at Unity oilfield.
