A Snapshot of South Sudan’s Oil Sector

Dear friends,

I would like to share with you the analysis “A Snapshot of South Sudan’s Oil Sector,” which the Oil and Gas Council, the leading network of energy executives in the world, published yesterday.

This analysis is related to Africa Assembly 2018, which is the largest African O&G finance and investment event. The Oil and Gas Council will organize Africa Assembly 2018 on June 5-6 in Paris, France.

ABSTRACT

According to BP Statistical Review 2007, at the end of 2016 South Sudan had 3.5 billion barrels of proven crude oil reserves, i.e., 0.2% of the world’s proven crude oil reserves. However, South Sudan, which got its independence from Sudan in July 2011, because of several problems, such as the lack of independent export routes, border disputes with Sudan, and since December 2013 an ongoing civil war, has not been able until now to consistently develop its oil industry; on the contrary, its oil production is currently declining. As a matter of fact, in July 2011, South Sudan was producing about 325,000 b/d, while production is now about 135,000 b/d. In addition to the three above-mentioned main problems, part of the reason for the oil-production decline is also linked to the mature status of the oilfields in South Sudan’s Unity State and Upper Nile State. South Sudan’s petroleum fiscal framework is based on production sharing contracts (P.S.C.s), and the country is currently developing a model P.S.C. Moreover, South Sudan must pass additional legislation concerning its hydrocarbons sector.

Kind regards,

Alessandro

Bacci, Alessandro, "A Snapshot of South Sudan’s Oil Sector," in Oil and Gas Council, June 1, 2018.

Keywords: #AfricaAssembly, #SouthSudan, #Africa, #MENA, #oil, #petroleum, #energy, #contract, #PSC