South Sudan, Chinese Firm Ink Landmark Deal for Modern Oil Refinery, Storage Facilities
The Chinese firm Shengli Oilfield Keer Engineering and Construction Company (Sokec) has signed an agreement with the state-owned Nile Petroleum Corporation (Nilepet) to construct a modern oil refinery and storage facilities in the country.
The Memorandum of Understanding (MoU) was signed on Friday in Juba by Wu Song, President of Sokec, and Muhammad Lino Benjamin, Managing Director of Nilepet, marking a new chapter in South Sudan’s energy sector.
The agreement signals a strong commitment from Sokec to invest immediately in South Sudan, a nation that has been striving to harness its vast oil reserves to fuel economic development.
During the signing ceremony, Benjamin praised Sokec for its role in the development of the world’s youngest nation, expressing hope that the MoU would pave the way for further collaboration.
“With this MoU, we hope you will be able to translate it into agreements and projects that we will do together,” Benjamin stated, underscoring the importance of the partnership.
Wu Song affirmed Sokec’s readiness to embark on the ambitious project without delay, with a focus on enhancing production capabilities and operational efficiency.
“We will start our preparation work as soon as possible on the refinery and storage facilities,” Wu said, highlighting Sokec’s commitment to strengthening South Sudan’s oil infrastructure.
The MoU comes on the heels of a high-level visit by Sokec’s delegation to South Sudan’s oil fields in Tharjiath, Unity State.
The two-day visit, which began on Monday, allowed the Chinese firm to inspect existing facilities and assess the current state of refinery operations.
Kuol Deng Maleith, Director General of Midstream at Nilepet, emphasised the significance of the visit, noting that it represents a crucial step towards modernising and expanding South Sudan’s oil industry.
He also highlighted the vital role international investors play in driving the growth of the country’s oil sector and, by extension, its broader economy.
This partnership between Sokec and Nilepet is expected to bring much-needed expertise and investment to South Sudan, potentially boosting the nation’s oil production and positioning it as a key player in the regional energy market.
