Ministry Of Petroleum Welcoming Investors For Direct Negotiation On Oil And Gas In Blocks B1 And B2
1 view
Skip to first unread message
Elisabeth Janaina
Apr 24, 2017, 1:34:56 PM4/24/17
to southsudankob
Ministry Of Petroleum Welcoming Investors For Direct Negotiation On
Oil And Gas In Blocks B1 And B2
Representing the Government of South Sudan, the Ministry of Petroleum
has announced that it is welcoming the interest of investors for
direct negotiations on oil and gas in blocks B1 and B2.
24 April 2017
Juba, 24 April 2017[Gurtong]– The announcement comes after
negotiations broke down with the French oil and gas company Total E &
P due to irreconcilable differences.
Officials of the Ministry of Petroleum met with representatives of
Total in Kampala, Uganda in the past two weeks. Also involved in the
negotiations to develop an exploration and production sharing
agreement (EPSA) for the blocks (B1 & B2) were UK independent Tullow
Oil Private Limited Company and the Kuwait Foreign Petroleum
Exploration Company (KUFPEC).
The negotiations reached an impasse over the proposed exploration
period and cost recovery limit.
“Following lengthy discussions with representatives of the company
Total we have decided it is in the best interest of South Sudan to
open opportunities to other potential investors,” said Ezekiel Lol
Gatkuoth, Minister of Petroleum of South Sudan. “We had hoped for a
favorable outcome but we believe these large and highly prospective
blocks need a fast and ambitious development program to achieve their
full potential. B1 and B2 are now open for direct negotiation.”
Blocks B1 and B2 were once part of the 120,000 square kilometer area
known as Block B, which was divided into three licenses in 2012. The
area is highly rich in hydrocarbon deposits but has experienced very
little exploration.
In March 2017, Pan African independent Oranto Petroleum Limited signed
an exploration and production sharing agreement (EPSA) with the
Government of South Sudan for Block B3. The area covers 25,150 square
kilometers and has estimated reserves in place of more than 3 billion
barrels.
“The resource base in these blocks are enormous and we need committed
operators who are ready to invest and work with our government to
comply with the laws of our country,” said the Minister. “South Sudan
is creating an enabling environment for companies to operate.
We want companies to invest, explore, produce and we are ready to
offer incentives to investors.”
The Government of South Sudan has adopted a very pro-business stance
with the expectation that aggressive investments in the petroleum
sector will stimulate the economy. In 2017, the Ministry of Petroleum
announced it was planning to double its total oil production by next
year.
South Sudan currently produces 130,000 barrels per day but can produce
as much as 500,000 barrels per day.
The Ministry of Petroleum invites companies to negotiate directly on
Blocks B1 and B2. Government officials will be present at the Africa
Oil & Power conference in Cape Town on June 5, 2017 to advance
discussions with interested parties.
Posted in: Home
- See more at: http://www.gurtong.net/ECM/Editorial/tabid/124/ID/20399/Default.aspx#sthash.TuVOSeV0.dpuf
Oil And Gas In Blocks B1 And B2
Representing the Government of South Sudan, the Ministry of Petroleum
has announced that it is welcoming the interest of investors for
direct negotiations on oil and gas in blocks B1 and B2.
24 April 2017
Juba, 24 April 2017[Gurtong]– The announcement comes after
negotiations broke down with the French oil and gas company Total E &
P due to irreconcilable differences.
Officials of the Ministry of Petroleum met with representatives of
Total in Kampala, Uganda in the past two weeks. Also involved in the
negotiations to develop an exploration and production sharing
agreement (EPSA) for the blocks (B1 & B2) were UK independent Tullow
Oil Private Limited Company and the Kuwait Foreign Petroleum
Exploration Company (KUFPEC).
The negotiations reached an impasse over the proposed exploration
period and cost recovery limit.
“Following lengthy discussions with representatives of the company
Total we have decided it is in the best interest of South Sudan to
open opportunities to other potential investors,” said Ezekiel Lol
Gatkuoth, Minister of Petroleum of South Sudan. “We had hoped for a
favorable outcome but we believe these large and highly prospective
blocks need a fast and ambitious development program to achieve their
full potential. B1 and B2 are now open for direct negotiation.”
Blocks B1 and B2 were once part of the 120,000 square kilometer area
known as Block B, which was divided into three licenses in 2012. The
area is highly rich in hydrocarbon deposits but has experienced very
little exploration.
In March 2017, Pan African independent Oranto Petroleum Limited signed
an exploration and production sharing agreement (EPSA) with the
Government of South Sudan for Block B3. The area covers 25,150 square
kilometers and has estimated reserves in place of more than 3 billion
barrels.
“The resource base in these blocks are enormous and we need committed
operators who are ready to invest and work with our government to
comply with the laws of our country,” said the Minister. “South Sudan
is creating an enabling environment for companies to operate.
We want companies to invest, explore, produce and we are ready to
offer incentives to investors.”
The Government of South Sudan has adopted a very pro-business stance
with the expectation that aggressive investments in the petroleum
sector will stimulate the economy. In 2017, the Ministry of Petroleum
announced it was planning to double its total oil production by next
year.
South Sudan currently produces 130,000 barrels per day but can produce
as much as 500,000 barrels per day.
The Ministry of Petroleum invites companies to negotiate directly on
Blocks B1 and B2. Government officials will be present at the Africa
Oil & Power conference in Cape Town on June 5, 2017 to advance
discussions with interested parties.
Posted in: Home
- See more at: http://www.gurtong.net/ECM/Editorial/tabid/124/ID/20399/Default.aspx#sthash.TuVOSeV0.dpuf
Reply all
Reply to author
Forward
0 new messages