South Sudan Resolved to Construct New Oil Refinery

While an existing refinery operates in Tharjiath, its capacity is limited, and inadequate road connectivity hampers the transportation of refined products to the market, said Minister of Information, Communication Technology and Postal Services Michael Makuei Lueth.

The new refinery aims to meet the fuel consumption needs of South Sudan and its construction will be financed through a public-private partnership, Makuei told reporters in Juba following a Council of Ministers meeting.

Nilepet, or Nile Petroleum Corporation, South Sudan's national oil and gas company, will hold a 30 percent stake in the new refinery, Makuei said.

Quad Layer Holdings, which will hold a 70 percent stake, will be responsible for constructing roads to connect the refinery to markets, ensuring efficient fuel distribution, he said. The two contracted companies will finance the entire project, and the government will reimburse their investment after the refinery begins production.

The official noted that after approval of the project by the government, it will be followed by feasibility studies to determine the capacity of the refinery before the contract is signed.

Oil production accounts for about 95 percent of South Sudan's annual fiscal expenditure. Currently, Juba depends on Sudan's oil infrastructure to transport crude through Port Sudan for export to international markets.

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