South Sudan’s Ministry of Petroleum (MoP) held an inaugural event in Juba on Wednesday to officially open the country’s first-ever oil and gas licensing round. The event marked a watershed point in the country’s competitive oil and gas sector, with a focus on speeding exploration and production at new and current blocks, as well as presenting the country as a competitive investment destination.

Present at the event was the Minister of Petroleum, Puot Kang Chol, the Undersecretary of the Ministry of Petroleum, Awow Daniel Chuang, the Minister of Finance and Economic Planning, Athian Ding Athian and the Vice-President and VP of the Economic Cluster, TGNU, James Wani Igga.

The licensing round intends to bring in international investors and partners to help South Sudan increase its exploration efforts. The new licensing process, which will take place against a backdrop of peace and security, intends to entice investors while also assuring long-term development and community benefits.

Speaking during the launch, Puot Kuang Chol, said: “Oil licensing is a proof of stability and progress in South Sudan. These blocks are part of a vision for lasting peace in the country and we want to open up the energy sector for investment. The Ministry of Petroleum has identified new exploration blocks with potential hydrocarbons for investors, operators, and other parties. We are inviting genuine investors and as mentioned in our Petroleum Act, we will try our best to be transparent.”

“If you look at the producing blocks today, the percentage of Nilepet has gone to 10% equity. We want investors but we also want to promote the capacity of Nilepet as the national oil company.”

The Minister of Finance said: “It is high time for us to help maximize the natural resources we have, and I applaud the MoP for what they are doing. The oil industry has had its ups and downs, but it is about time that these resources benefit the community, and everyone gets their rightful entitlement of the development that is taking place in South Sudan.”

James Wani Igga said: “Certainly, one can say with confidence that South Sudan is doing well in maintaining peace and implementing peace agreements. For the first time we can really promote investment. The country needs to rigorously enforce transparency and good governance. We need accountability to improve. I am glad that with this new licensing round, the whole country will benefit.”

The Undersecretary of the Ministry said: “Most of the areas being licensed had previously not been explored properly in terms of seismic data due to complications from the war. In 2019, we contracted PETROTECH to help with the data. The absence of data previously made it difficult to conduct licensing rounds, however, this licensing round today allows South Sudan to conduct a transparent tendering process with trustworthy data that is available.”