A year after independence in 2012, South Sudan bolstered its relations with Russia in the field of oil and gas represented by Russia’s Safinat and South Sudan’s Nilepet. |File Photo|.
South Sudan and Russia signed a memorandum of understanding in the fields of oil, mining, and agribusiness development on Tuesday in Juba.
Bernard Amour Makeny, the managing director of Nile Petroleum and Gas Corporation, inked the deal on behalf of the government of South Sudan, and Mr. Badikov Alexey, signed on behalf of the Russian government.
Speaking to the media after the signing ceremony, Barnard Makeny reiterated the keen interest of the government of South Sudan to advance its bilateral relations with Moscow in several fields of development to revive the weakening state of the economy in the country.
Makeny said Russian investors will construct an oil refinery, and strategic fuel reserve and modernize the country’s agricultural sector to improve food security, saying the deal would mutually benefit the two countries.
In September last year, President Kiir paid a strategic visit to Russia in a show of solidarity with the Russian Federation amid the growing Western isolation over the raging conflict in Ukraine.
While in Russia, President Kiir seized the opportunity to meet President Vladimir Putin over the distressing sanctions and arms embargo slapped on South Sudan by the United Nations Security Council and the United States of America.
The discussion also touched on hastening the bilateral ties in the fields of oil production, mining exploration, and helping the world’s youngest nation organize credible, peaceful, free, and fair elections as well as addressing the political challenges pulling down the country’s economic growth.
Russia’s oil firm, ‘Safinat Group’ has been engaging in developing South Sudan’s first oil refinery to produce fuel and oil products for home consumption and export to neighboring countries.
However, the 2013 and 2016 bloody conflicts in South Sudan ruined the construction of Tarjas Oil Refinery in Unity State.
Safinat—NILEPET (SNP) Group Limited was established in 2012 as a Joint Venture between the Government of South Sudan represented by Nile Petroleum Corporation and Safinat Group of Russia.
South Sudan’s share in the joint oil venture is 30 per cent while Russia’s Safinat is 70 per cent.
The SNP Group Ltd owns the Bentiu Refinery located at Unity Oilfields, which is in the final commissioning stage.
Russia, a permanent member of the UN Security Council with veto power has been protecting South Sudan in the face of criticisms and attempted punitive measures particularly, from countries that are not happy with the handling of human rights issues in South Sudan.
“We obviously discussed a wide range of issues from yesterday and today and we signed the minutes of our meeting and followed up on the nondisclosure agreement and also exchanged information and data in regards to different areas,” Makeny said to the media.
“We agreed on different areas of engagement; one is the oil refinery; two is the strategic fuel reserve and acquisition of new oil blocks by Russian investors as well as developing the agriculture sector. We need to use the oil resources to balance it with agriculture and I think this is the same strategy the investors have in mind to invest in agribusiness,” Makeny added.
Badikov Alexey said Russian investors are keen to promote business and help recover South Sudan’s economy.
The first project that Russia will start with will be the establishment of an oil refinery not only to provide products for the local market but also to supply the region, Alexey said.
“We would like to cooperate with NilePet to implement projects such as the petrochemical, petrol, distribution of oil products, and mutual exploration work which will be provided by the government of South Sudan,” the Kremlin official said.
Golden Times | South Sudan
