South Sudan has announced plans to construct a modern oil refinery and storage facilities. The move was formalized with a Memorandum of Understanding (MoU) inked between South Sudan’s state-owned Nile Petroleum Corporation (Nilepet) with Shengli Oilfield Keer Engineering and Construction Company (Sokec).
Sokec, represented by President Wu Song, will immediately begin investing in South Sudan, aiming to enhance both production capabilities and operational efficiency. The signing ceremony in Juba, attended by Managing Director of Nilepet Muhammad Lino Benjamin, was a key moment, highlighting the collaborative effort to advance South Sudan’s oil infrastructure.
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Economic development
Benjamin praised Sokec’s role in the nation’s development and expressed optimism about translating the MoU into concrete agreements and projects. Wu Song assured that Sokec would commence preparatory work on the refinery and storage facilities promptly.
Kuol Deng Maleith, Nilepet’s director general of Midstream, emphasized the importance of international investment for the modernization and expansion of South Sudan’s oil industry. This partnership is seen as a pivotal move in fostering economic development and enhancing the country’s oil sector infrastructure.
The civil war in Sudan has severely disrupted oil exports, depriving South Sudanese coffers of petrodollars, the government’s main source of revenue. South Sudan seceded from Sudan in 2011, but the young country remains entirely dependent on its northern neighbour to get oil to international markets, using two pipelines to transport crude to Port Sudan on the Red Sea.
