Jeff Radebe clinches oil exploration agreement with South Sudan

An exploration and production sharing agreement has been signed between South Sudan and South Africa’s Strategic Fuel Fund.

This is line with the Sunday Times reporting on proposed deals with South Sudan. On Sunday, the paper reported that energy minister Jeff Radebe was keen to finalise the R14.5bn deal with the war-ravaged country on the eve of SA’s elections.

The Sunday Times previously reported how Radebe pushed for SA to invest in building an oil refinery and exploring a new oil block in South Sudan. This was done in spite of Radebe having been advised against the investment by the state’s Central Energy Fund. Radebe insisted that the project would go ahead only after a full feasibility study had been concluded, according to the publication.

In a statement issued from Juba on Monday, the African Energy Chamber said: "This is the second petroleum exploration agreement that South Sudan has signed since independence. Singing this deal with South Africa’s state-owned company marks the emergence of a strong intra-African energy cooperation and signals the willingness by South Sudan to provide investors with an enabling environment to invest and do business in the country."