South Sudan Signs First Oil Deals Since Independence
JUBA (Dow Jones Newswires), Jan. 13, 2012
South Sudan signed its first oil deals with foreign nations since it won independence last July, inking agreements with Chinese, Indian and Malaysian firms, officials said.
Oil revenues make up 98 percent of government budget for the world's newest nation, which split last year from former civil war enemies in north Sudan last year, taking with it some 75 percent of oil production.
The deals, which replace contracts signed with Khartoum under a unified Sudan, cover oil production in the two key petroleum states of Unity and Upper Nile.
"Now as of today, we have assured our position with our partners, that we are committed to work together to promote our interests through exploitation of the oil," Minister of Petroleum and Mining Stephen Dhieu Dau told reporters.
China, which relies on South Sudan for nearly 5 percent of its oil, also signed several cooperation deals with South Sudan Friday during visit by Li Yuanchao, a senior member of China's ruling Communist Party.
They included a deal for "economic and financial cooperation" as well as a training agreement between the state-run China National Petroleum Corp. and the South's oil ministry, the government website said.
Despite its oil wealth, the new state of South Sudan lacks the infrastructure to refine and export oil.
Beijing is a key ally of the Khartoum government, which has tried to offset the heavy loss of southern oil revenues by charging what Juba has described as an extortionate fee to use its infrastructure to export crude via the Red Sea.
China is supporting ongoing negotiations between the two Sudans over pipeline fees, with the next round of talks due Jan. 17.
Copyright (c) 2012 Dow Jones & Company, Inc.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension