South Africa is negotiating an oil deal with South Sudan, Energy Minister Jeff Radebe told reporters following reports that South Africa is in talks to build a $ 1 billion refinery in the newest country in Africa to the United States.
Radebe said talks with South Sudan are not exclusive: Cape Town strives to reduce its tendency to highly volatile oil prices towards ensuring transactions in the sector with other countries, including Nigeria and Equatorial Guinea, as well.
South Africa is now almost completely dependent on imports of crude oil, but the French company Total recently announced the opening of its banks, which may contain up to 1 billion barrels in total on the & # 39; the amount of resources.
"This is a gas condensate and light oil. Basically gas. There are four perspectives on the license, we need to drill; it can be about 1 billion barrels of shared resources and gas condensate " CEO of Total Pauyann Patrick said at the time.
At the same time, South Sudan, which is a & # 39 is home to most of the oil reserves of the old united country, seeks to begin to raise oil production after a devastating civil war that has not ended completely.
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Before the civil war, South Sudan produced 350,000 barrels of crude oil, but now the average production of 180,000 barrels per day. It is planned to increase 270 thousand barrels per day, and eventually restore the pre-war level of production. The country has oil reserves, which are estimated BP's 3.5 billion barrels as of 2016.
Reports of US $ 1 billion refinery deal in South Africa for the first time & # 39 appeared earlier this year, saying, Cape Town has spent nearly US $ 1.4 million (20 million rand) of the project plant. Radebe and the government have been criticized by lawmakers are talking about a deal in a secret way. Energy Minister rejected criticism that it was "Above Board" in oil and gas talks in South Africa with South Sudan.
This article It was originally published on Oilprice.com