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The energy sector of South Sudan

The energy sector is one of the key sectors in South Sudan’s economy with significant amount natural resources, especially oil deposits located along the contentious Sudan-South Sudan border.

South Sudan has lost around 95% of government revenue since it shut down oil production in early 2012 because of a dispute with Sudan over transhipment fees that has had a devastating impact on GDP, which declined by at least 55% in 2012.

After months of negotiations, Sudan and South Sudan agreed in March 2013 to resume oil production. South Sudan previously produced 350,000 barrels a day but will resume output of between 150,000 b/d and 200,000 b/d initially

Regulatory Framework

The Petroleum Act , 2012

It establishes the regulatory framework for the petroleum sector including defining the powers and the functions of the Ministry of Petroleum and Mining as far as petroleum sector is concerned.

Ministry of Electricity and Dams

The ministry of Electricity and Dams is a newly established institution. It is mandated to plan and provide generation facilities, transmission and distribution of power to both the industrial and domestic consumers through the state – owned electricity corporation.

Ministry of petroleum and mining

 Mission:

To facilitate the development, promotion and management of minerals and oil resources in a sustainable manner to foster the economic growth of the Republic of South Sudan

 Functions

The mandate and functions of the ministry are guided by both The Petroleum Act, 2012 and The Mining Act, 2012. The Powers and Functions of the Ministry as stipulated in the Petroleum Act are as follows:

  • The Ministry may establish a body to be known as the Petroleum Exploration and Production Authority to oversee petroleum operations and advise the Ministry
  • The Ministry shall implement the policies established by the Commission respecting the management and development of the petroleum sector and for those purposes shall:
  • Formulate strategies, plans and programme for the development and management of the petroleum sector,
  • Negotiate petroleum agreements in accordance with this Act;
  • Sign, manage and, if applicable, terminate the petroleum agreements on behalf of the Government after approval by the Commission;
  • Manage petroleum resources on behalf of the Government
  • Manage the relations of the Government with petroleum companies operating in the Republic
  • Develop the necessary technical capacity and competence of personnel involved in petroleum activities
  • Provide technical expertise and support to the Commission
  • In consultation with affected communities, ensure that all petroleum projects are subject to environmental and social impact assessments
  • Make public and disclose documents and information pursuant to Sections 78 and 79 of the Act.
  • Initiate legislation and make rules and regulations respecting the development and management of the petroleum sector pursuant o section 99 of the Act.
  • Provide for the transportation, processing, refining and distribution, including the relevant infrastructure relating to these activities and provide for the marketing and selling of Government entitlement of crude oil and its derivatives; and
  • Perform any other functions as prescribed by law

National Electricity Corporation of Sudan (NEC)

National Electricity Corporation of Sudan (NEC), which is responsible for electricity generation, transmission and distribution, and three main regulatory bodies have been established to deal with petroleum, electricity, and mining:

Electricity: Electricity Regulatory Authority (ERA)

Petroleum: Sudanese Petroleum Cooperation (SPC)

Mining: Public Geological Research Authority (PRA)

Sudanese Petroleum Corporation

Sudanese Oil Corporation was established under the law of the oil wealth for the year 1998 as a public institution subject to the supervision of the Minister of Energy and Mining.

Purposes and powers of the institution:

In the framework of the objectives, plans and policies established by the oil Affairs Council for purposes Foundation and the following authorities:

  • The development of oil wealth and the proper exploitation.
  • The management of all oil operations in the country, control and supervision of such operations and be the sole concessionaire in all oil operations.
  • Responsible for providing the country’s needs of different oil products.
  • within and outside Sudan operations of exploration and the search for and production of oil and it alone or through companies owned or jointly with others
  • Oil refining and filtered.
  • Marketing of petroleum and its products and distribution.
  • Pipelines and create storage and other oil installations, operation and maintenance.
  • The transport of oil and its derivatives and marketed within and outside the Sudan and carry out all operations necessary to achieve this purpose.
  • Development of petroleum products and specifications reviewed and approved and quality control.
  • Follow the best ways to maintain the oil wealth.
  • Control of all oil operations and persons engaged in such operations.
  • The development of programs for the training and rehabilitation of cadres to carry out the work in the oil industry and oil operations alone or in conjunction with any other relevant jurisdiction.
  • The establishment and having oil ports, operation and maintenance to be used for the purposes of oil products in coordination and agreement with the competent authorities.
  • Conduct research and studies for all petroleum operations.
  • The construction of real estate, factories and facilities needed to carry out its functions and owned and invested.
  • To borrow money from any point inside and outside Sudan or lent to do its work and finance their projects in accordance with the conditions established by the Minister in consultation with the Bank of Sudan and approved by the Council of the affairs of the oil.
  • The establishment of subsidiary companies and owns stock in any company list.
  • Enter into contracts or to enter into any commitments within and outside Sudan and to carry out its work.
  • The conclusion of agreements and the granting of oil exploration licenses in accordance with the policies that permitted oil Affairs Council and be responsible for the follow-up implementation.

National Petroleum and Gas Commission

It is a policy making body that reports directly to the president, national legislature assembly and council of states

Powers and functions

  • Provide general policy direction with respect to petroleum resources.
  • Act as a supervisory body in matters relating to petroleum resource management.
  • Approve all petroleum agreement on behalf of the government to ensure that they are consistent with the Act.
  • Ensure coordination among all levels of government and states to promote cooperation among the private sector, non government organizations and other persons, institutions and organizations interested in petroleum activities.
  • Perform any other power, function and duty as prescribed by law.

Nile Petroleum Corporation (NILEPET)

Nile Petroleum Corporation (NILEPET) is an integral part of the Republic of South Sudan and it’s the commercial arm of the Ministry of Petroleum and mining.

Mission

  • To explore, develop, produce, add value and manage resources in an efficient and environmentally sound manner.
  • To promote the sustainability and growth of the national oil industry, safeguard national oil interest and guarantee higher returns for the nation.
  • To develop capable and competent management and technical workforce.
  • To be a socially responsible and environmental-friendly business entity.

The information on the energy sector is summarised as follows;

Energy Sector Profile

Current State

Oil Sub-sector

Investment Opportunities in energy sector