NilePet to seize oil fields by 2027
The Managing Director of Nile Petroleum Corporation (Nilepet), Dr Chol Deng Thon, has revealed that the corporation will seize some oil fields from foreign investors in 2027.
Dr Chol disclosed in an interview with Miraya FM, shared on its platforms, that the contracts of some foreign investors would elapse in 2027 and this would leave the oil fields in the hands of the leading government corporation. He noted that the first oil field would be the one in Paloch, Upper Nile.
“As the national oil company, we have the mandate of actually taking over the industry after the current investors leave. The first blocks that will come back are blocks three and seven, and they will come back in 2027,” Dr Chol said.
He said that they were preparing to be the operators by training engineers for the purpose of the operation.
“Currently, we are preparing to take over blocks three and seven in 2027, we have what we call the operatorship programme 2027, the vision of becoming an operator by 2027, so we are training our engineers,” he stated.
He stated that the oil production had been affected by floods, leaving the country with a low production capacity of 140, 000 barrels per day compared with the former 250,000 to 300,000 barrels per day.
The country had been witnessing occasional fuel shortages that caused commodity prices to shoot higher, thus setting the bar for living standards a notch higher.
Speedy strategy
In January 2021, President Salva Kiir Mayardit directed Dr Chol to speed up the construction of a refinery to save the country from a fuel crisis as part of its strategic plan 2017-2027.
“His Excellency President Salva Kiir Mayardit was briefed in his office by the Managing Director of Nile Petroleum Corporation, Dr Chol Deng Thon Abel, on the activities of Nilepet. Dr Chol also briefed H.E. the President on the progress of the ongoing implementation of Nilepet projects based on its strategic plan for 2017- 2027,” read the statement.
The strategic plan involves the construction of pipelines, road rehabilitation from oil fields to refineries, and the building of fuel storage plants in all ten states and the three administrative areas.
Effects of floods
The Bentiu refinery was constructed by a Russian company called Safinat as one of the five refineries that could save the country from fuel deficiency by refining 127,000 barrels per day. In the meantime, the refinery in Bentiu produces 10,000 barrels per day.
In October last year, the road from the oil fields to the refinery started in April 2021, from Wunrock to Bentiu oil fields, but was interrupted by floods.
The former Managing Director, Bol Ring Muorwel, after inspecting the refinery in October last year, said it was imperative to speedily construct a road from the oil field to the refinery.
“Rain and floods across South Sudan have seriously affected our plan for the construction of a road to the refinery, but as we are coming to the end of the rainy season, the road construction will resume, ensuring that refined products reach the market within and across our borders, ” Ring said.
The former Nilepet chief said the refinery would help in limiting the costs, reducing fuel shortages and discouraging dependence on neighbouring countries.
“Fuel scarcity will be a thing of the past if the local refinery officially starts operating as the main fuel supply centre in South Sudan. The refineries are not only to bring money, provide currency, or stabilise our economy but also to help create more job opportunities for thousands of youths in the country,” he stressed.
He stressed that the country should revive its economy through rapid industrialization, agricultural revolution, and freedom in different ways for economic stability instead of being solely dependent on oil revenue.
