South Sudan looks to lure investors with first oil licensing round

South Sudan, the landlocked East African nation, has recently launched its first-ever licensing round in a bid to revive its staple oil sector which has been plagued by years of insecurity following its split from Sudan in 2011. Economic Analyst, Akol Dok, sheds light on the bidding process and the potential for attracting investors. The first licensing round will include the auctioning of blocks A2, A5, B1, B4, and D2. Interested parties are required to submit the necessary documentation and company information to bid for these blocks, marking a significant step towards seeking investment in the country's upstream sector. While the exact duration of the bidding process remains uncertain, it is estimated that the entire process, including bidding, shortlisting, and awarding, could take up to a year or more to complete. Despite the challenges faced by South Sudan in rebuilding its economy following a five-year civil war, the government is making efforts to attract investors and enhance production in the oil sector. With existing oil blocks already dominated by Chinese companies, South Sudan aims to diversify its investor base by inviting players from across the globe. By opening up the sector to new entrants, the government hopes to increase production and stimulate further investment in exploration and development. The government's primary objective is to tap into the untouched potential of the country's substantial oil reserves, which currently remain largely unexplored. While foreign investors from China and Malaysia have already established a presence in the region, South Sudan anticipates a surge in competitiveness as the country stabilizes and attracts investors from the US, UK, Middle East, and beyond. With 90% of its oil and gas reserves still untapped, South Sudan presents significant opportunities for growth and development in its energy sector. However, the journey towards realizing this potential has been hindered by challenges such as the lack of sufficient data on reserves and the need for serious, committed investors who are willing to explore and develop the blocks rather than engage in speculative trading practices. The Ministry of Petroleum has launched a seismic survey to address the data gap, providing investors with more certainty about the oil reserves within these blocks. By overcoming these obstacles and attracting genuine investors, South Sudan hopes to leverage its vast oil resources to not only enhance its oil sector but also spur growth in other key industries like agriculture, mining, fishery, and tourism.