South Africa's national oil company Strategic Fuel Fund (SFF) will own and operate Block B2 ; In 2018, South Africa agreed to invest one billion dollars in South Sudan's energy infrastructure; South Sudan has the third largest oil reserves in sub-Saharan Africa, estimated at 3.5 billion barrels, with only 30% of the country explored.

South Africa today signed an Exploration and Production Sharing Agreement (EPSA) with South Sudan for block B2.

The deal, which is strategic for South Africa, will see Block B2 explored and operated by the Strategic Fuel Fund (SFF), the Ministry of Petroleum and Nilepet – the national oil company of the Republic of South Sudan. This is the second agreement signed in South Sudan since 2012, and demonstrates that the country's oil industry is currently progressing as production increases in oil fields and new exploration campaigns are taking place.

South Sudan is an established world-class oil production region, whose territory includes much of the Cretaceous rift basin system that has proven to be oil-rich in Chad and Niger, and Sudan. It currently produces 160,000 barrels per day and aims to increase production capacity to 270,000 barrels per year by the end of the year. The country has the third largest oil reserves in sub-Saharan Africa, estimated at 3.5 billion barrels, with only 30% of the country explored to date.

As part of this new EPSA, which includes a six-year exploration period, SFF and Nilepet will launch an extensive gravimetric survey exploration campaign, seismic acquisition and well drilling with great perspective. The SFF will also invest in capacity building initiatives, training of South Sudan citizens, social and community development projects, and ensuring local content and women's empowerment as part of this investment effort.

"The oil resources of Block B2 are vast. For South Sudan to meet its goal of reducing its production to about 350,000 barrels of oil per day (bpd) and beyond, we need committed newcomers like the SFF," said Oil Minister Hon. Amb. Ezekiel Lol Gatkuoth. "South Sudan has great potential, but our country remains largely under-explored and we believe that the arrival of new players such as the SFF will very soon lead to new world-class discoveries, given the aggressive exploration program and the high oil viability of Block B3. This will contribute to South Sudan's economic recovery and improve trade with other African countries." 

"We are optimistic about this strategic and unique opportunity to enter Block B2 with great oil potential. It offers South Africa a chance to further strengthen its energy security while gaining access to one of the three most lucrative onshore oil and gas markets in Africa ," said Hon. Jeff Radebe, South African Minister of Energy. "South Africa has supported peace and economic development in South Sudan since the country's independence and it is the continuation of long-term cooperation between our two countries and the people. Investment is essential to ensure South Sudan's economic progress." 

Last year, South Africa's Department of Energy pledged to invest $1 billion in South Sudan's oil industry, with the aim of ensuring affordable energy supplies for South Africa. The two countries are currently in talks to set up a 60,000 barrels per day refinery to supply petroleum products to South Sudan's local market, as well as secure their exports to Ethiopia and other neighboring countries.

Zone B2 includes productive parts of the Muglad Basin and is part of Block B of 120,000 ^km2 divided into three in 2012. Interest in South Sudan's B-block areas has steadily increased since Oranto Petroleum's entry into Block B3 in 2017. Much of South Sudan's oil and gas deposits have not yet been fully explored and resources not assessed.

"SFF looks forward to working with our partners in South Sudan to make discoveries on this block. We believe that Block B2 contains extremely large amounts of oil. Our work programme and the acquisition of new seismic data will reveal better information on various structures. We are looking forward to some wildcats and evaluation wells. We thank the Government of South Sudan for this opportunity," said Godfrey Moagi, Acting CEO of SFF.

The CEF Group is responsible for finding solutions that will meet South Africa's energy needs. Through its subsidiaries, the South African Petroleum Company (PetroSA), the South African Petroleum Agency (PASA), the Strategic Fuel Fund (SFF), the African Financial Exploration and Exploitation Corporation (AEMFC) and iGas, the group also manages operations and asset development. troliers and gas workers in the country.