South Africa will invest $1 billion in South Sudan’s oil sector, which includes the construction of a refinery, says Energy Minister Jeff Radebe.
Radebe and his South Sudanese counterpart for petroleum, Ezekiel Lol Gatkuoth, announced the investment on Friday.
South Sudan’s oil industry is dominated by Asian firms including China National Petroleum Corporation (CNPC), Malaysia’s Petronas and India’s Oil and Natural Gas Corporation (ONGC Videsh), according to Reuters.
The two ministers signed a memorandum of understanding which will also involve South Africa taking part in the exploration of several oil blocks, the ministers said.
“When this refinery is complete, it will have the capacity of producing 60,000 barrels of oil per day,” said Radebe.
Gatkuoth said the deal also offers avenues for cooperation in the construction of an instrumental new pipeline to serve fields located in the south of the country.
(Reporting by Denis Dumo; writing by Duncan Miriri; Editing by Mark Potter and Jason Neely/Reuters and Jenni Baxter/SAPeople)