Nigeria’s Oranto Petroleum Company and South Sudan government on Monday signed oil sharing deal covering Block B3 in former Jonglei, Lakes and Central Equatoria states.
“Oranto Petroleum will invest $500 million to develop South Sudan’s Block B3, launching a comprehensive exploration campaign starting immediately,” the company said in a statement.
“We believe the petroleum resources of Block B3 are vast. To reach our target of more than double current oil production, we need committed new entrants like Oranto,” South Sudan’s Minister of Petroleum, Ezekiel Lol Gatkuoth said during a press conference in Juba.
“The government is working hard to reinvigorate the petroleum industry in South Sudan by creating an enabling environment for International oil and gas companies to invest and operate. It is up to the oil companies to come in, explore and produce,” he added.
The South Sudanese official pointed out that Oranto will be the technical operator and 90% shareholder of the block, with the government-owned oil company Nilepet holding a 10% stake.
“It’s an honour to formalize our entry into South Sudan with this EPSA,” said Prince Arthur Eze, Founder and Chairman of Oranto Petroleum.
“Our company is at the vanguard of African firms exploring and developing African assets. This is the beginning of a long-term collaboration with Nilepet, the people of South Sudan and our partners to bring to light the immense potential of Block B3. Oranto is committed to an aggressive exploration work program that will benefit all stakeholders,” he added.
Reportedly, the 120,000-square kilometre Block B was split by the South Sudanese government into the B1, B2 and B3 blocks in 2012. In Block B3, Oranto will work alongside the B1 and B2 partners, which include Total.
During the first three-year exploration period, the Nigerian oil company said it will complete a further airborne geophysical survey; acquire and process 2D seismic; and assess existing data held by the government and former operators.
South Sudan is an established, world-class petroleum producing region, whose territory includes a large part of the Cretaceous rift basin system that has proved petroliferous in Chad and Niger as well as Sudan.
Photo: South Sudan Minister of Petroleum Ezekiel Lol shakes hand with Prince Arthur Eze, Founder and Chairman of Oranto Petroleum after the signing ceremony in Juba on Monday, March 6, 2017/Radio Tamazuj