South Sudan to return to pre-war oil production levels ‘by 2020’

The country has one of the largest reserves of crude oil in the region. (Reuters)
Updated 11 February 2019

South Sudan to return to pre-war oil production levels ‘by 2020’

  • The world’s youngest country, which split from Sudan in 2011, has one of the largest reserves of crude in sub-Saharan Africa, only a third of which have been explored so far

GREATER NOIDA, India: South Sudan will return to producing more than 350,000 barrels of crude per day by the middle of 2020, up from current levels of just over 140,000 barrels per day (bpd) currently, the country’s oil minister said on Sunday.
Production is expected to rise to 270,000 bpd by the end of 2019, Oil Minister Ezekiel Lul Gatkuoth told Reuters. He was speaking on the sidelines of the Petrotech conference in Greater Noida, a satellite city of India’s capital New Delhi.
The world’s youngest country, which split from Sudan in 2011, has one of the largest reserves of crude in sub-Saharan Africa, only a third of which have been explored so far. The country lost many oilfields to a civil war that broke out two years after its independence. A September peace agreement is largely holding.
“By the end of the year, block 3 and 7 will be hitting 180,000 bpd, blocks 1, 2 and 4 will be producing 70,000 bpd, and block 5A will be producing 20,000 bpd,” Gatkuoth said.
“We used to produce 350,000 to 400,000 bpd. We expect to go back to those levels by the middle of next year,” he said.
South Sudan has signed a preliminary agreement with Russia’s Zarubezhneft for exploring some of the blocks, Gatkuoth said.
“They are interested in block B1, B2, E1 and E2. We will be working to see where they are likely to be interested in the most,” he said.
South Africa, which has committed to investing $1 billion in the country, would collaborate with South Sudan on the construction of pipelines and a new refinery along the border with Ethiopia, the minister said.
“We have agreed to build a refinery on the border of Ethiopia, we have already signed an agreement with Ethiopia to offtake refined products,” Gatkuoth said.
Land-locked South Sudan is looking to boost its export options as it looks beyond its neighbor Sudan, the minister said: “We have new blocks in the southern part of South Sudan, oil from which will be exported to East Africa (through the new pipelines).”
American oil majors such as Exxon Mobil and Chevron showed interest in investing in South Sudan, but are currently not interested because of the conflict, he said.
“We have been approaching Exxon officials, and I will be meeting them in Houston next month,” he said.


Nvidia deal for Arm will drive computing power growth, says SoftBank’s CEO

Updated 23 October 2020

Nvidia deal for Arm will drive computing power growth, says SoftBank’s CEO

  • Saudi Arabia's Public Investment Fund (PIF) is an anchor investor in the $100 billion Vision Fund

TOKYO/DUBAI: SoftBank Group Corp. CEO Masayoshi Son said on Thursday the sale of chip designer Arm to Nvidia Corp. will drive growth in computing power, in his first public comments since the $40 billion deal was announced in September.
Son made the comments at a virtual summit about artificial intelligence hosted by Saudi Arabia, an anchor investor in the $100 billion Vision Fund, at which he reiterated his belief that AI would transform society.
The Nvidia deal, part of a series of asset sales by Son, whose group has been shaken by soured investments and the COVID-19 pandemic, has raised concerns it will threaten Arm’s role as a neutral supplier in the industry.
Son is set to speak next week with Nvidia CEO Jensen Huang at SoftBank World, the group’s annual event for customers and suppliers that is being retooled as it focuses on investing.
SoftBank’s growing cash pile is driving speculation about future investment plans, with the Vision Fund targeting external funding for a blank-check company, a source said, in a sign the group is regaining its mojo.
“I am a risk taker,” Son said on Thursday.
Rajeev Misra, CEO of SoftBank Investment Advisers which oversees the Vision Fund, said the market share gained by online commerce companies in the last six to eight months is more than what they gained in the previous four years put together.
“COVID has accelerated the acceleration of AI even further,” Misra told the same conference, adding in the 105 companies Vision Fund 1 and 2 have invested in, artificial intelligence is the core of their businesses.