Improved/Enhanced Oil Recovery Opportunities
The oil production rates in South Sudan Oilfields are rapidly declining with increasing water cut. One of the options being considered by the Ministry of Petroleum (MoP) and the contractors is the implementation of Improved Oil Recovery (IOR/Enhanced Oil Recovery (EOR) schemes.
The IOR/EOR projects that are being considered are thermal, polymer flooding and gas injection, but they generally require significant investment and have a fairly long payout period. As a result, it may be necessary in some instances for the government to re-negotiate license extensions on existing producing oilfields in order to ensure that the additional investments will be beneficial to the government and economically fair to the contractors.
Fuel Depot Projects
A number of fuel depots were proposed to be constructed in different locations in the country since 2012, but none of these have found its way to execution due to lack of funding. Now, with a new approach being adopted by the Ministry of Petroleum (MoP), Nile Petroleum Corporation (NILEPET) is assuming responsibility for funding the fuel storage terminalz and it is expected that progress will be realized in the near future.
Pipeline Projects
The first phase of the feasibility study for an alternative export pipeline was completed and presented to the RSS Cabinet in November, 2013. Two export pipeline routes have been studied and compared in order to facilitate a decision as to which should be the best solution that serves the interests of the Republic of South Sudan. However, due to the crisis, a decision has not yet been made. It is expected to be finalized soon. Pland for inland alternative evacuation pipeline from Tharjiath oilfields (Unity state) to Paloch (Upper Nile state) has been initiated. The conceptual design is completed and we expect to proceed with the project subject to security considerations.
Products Supply
The Republic of South Sudan primarily consumes distillates in the form of Diesel for trucks and power generation fuel. Products are currently imported via Kenya and Sudan. The supply of products for domestic consumption is being handled by Nile Petroleum Corporation (NILEPET) along with other private companies. The Ministry of Petroleum (MoP), Republic of South Sudan and the Government of Kenya have an agreement in place regarding the allocation of ullage. The Ministry of Petroleum also provides the formal approval for companies to pick up and transport product from Kenya. NILEPET is responsible for product distribution within South Sudan.
Source: Ministry of Petroleum (MoP) Petroleum Report (June 2019 – May 2020).