Total in talks to resume oil search in South Sudan

French-owned oil marketer Total has entered into negotiations to set up laws which will enable it to develop oil resources in South Sudan.

Speaking in Nairobi on Tuesday, Total Kenya managing director Alexis Vovk said officials are already in the southern country to assess the situation and develop a framework for submission to the South Sudan authorities.

“We have had an oil concession in South Sudan for several years but have not exercised our rights over it because of the political crisis the country was in. Following separation of South Sudan from the North, we intend to use the prevailing situation to resume exploration activities,” said Mr Vovk.

Records show that Total signed an exploration and production sharing agreement for Block B located near the Ethiopian border in 1980 together with US-owned Marathon Petroleum Sudan Limited (32.5 per cent), Kufpec Sudan Limited of Kuwait (25 per cent) and Sudan’s State-owned Sudapet (10 per cent).

Total, which has 32.5 per cent interest in the project, was in charge of exploration and developing the concession. However, not much activity has been going on due to the civil war that hit the country.

If successful, plans to resume exploration are expected to boost activity at the planned oil pipeline connecting oil fields in South Sudan and the Kenyan Coast for export and refining at proposed refineries to be set up as part of a Sh1.4 trillion Lamu Port project.