South Sudan launches its first oil licensing round

South Sudan officially launches its first oil licensing auction with five blocks on offer, in an attempt to revamp its economy that has suffered from both war and global pandemic.

"The oil licensing round aims to attract interest from a diverse group of foreign investors to a region that is already home to oil and gas majors from China and Malaysia," said the Ministry of Petroleum in a statement on Wednesday.

China National Petroleum Corporation and Malaysia's Petronas have been operating in South Sudan, which has seen a ceasefire in 2018 after five years of civil war upon its establishment.

“With the new data, analysis, and government mechanisms, the Ministry seeks to attract high-quality investors and partners,” said the statement.

The ministry said in the statement that the available blocks range between 4,000 and 25,000km², with most comprising between 15,000 and 20,000 km².  

The ministry will host virtual series of data presentations followed by an international roadshow, once the period for expressions of interest closes.

South Sudan’s revenues comes from oil mainly. It has boosted an output in an attempt to reach prewar production levels of 350,000 to 400,000 barrels per day (bpd).

According to Energy Intelligence Group data, South Sudan’s oil production has declined by half from almost 200,000 barrels a day in 2014; during the unrest.