Oranto Petroleum, a Nigerian oil firm, has entered an agreement with the government of South Sudan to develop its Block B3 oil exploration block.
Basically, it is an exploration and production sharing agreement (EPSA) where Oranto is set to invest around $500 million in developing the oil block that covers an area of 25,150 square kilometers across the former Jonglei, Lakes and Central Equatoria states. Commenting on the project, South Sudan petroleum minister Ezekiel Lol Gatkuoth said:
“The government is working hard to reinvigorate the petroleum industry in South Sudan by creating an enabling environment for International oil and gas companies to invest and operate. It is up to the oil companies to come in, explore and produce.”
Oranto has already started a comprehensive exploration campaign at the block, which is believed to hold reserves of around three billion barrels. For the first three years of its operation, the company plans to complete an airborne geophysical survey and generate 2D seismic data of the region. It will also study collected data from previous operators and the government.
Under the agreement, Oranto is the technical operator having 90% stake in the oil exploration block, while Nile Petroleum Corporation (Nilepet) owns the remaining 10% stake.
Expressing his contentment with the project, Oranto founder Prince Arthur Eze said:
“This is the beginning of a long-term collaboration with Nilepet, the people of South Sudan and our partners to bring to light the immense potential of Block B3.”
South Sudan is one of the most established petroleum producers in the world. Here, Oranto and Nilepet will have huge oil and gas acreages to invest and operate in.