
Gainful Solutions: Press Release on Contract with the Government of South Sudan (07.05.2019)



South Africa today signed an exploration and production sharing agreement (EPSA) with South Sudan for Block B2.
JUBA, South Sudan, May 6, 2019 – South Africa’s state-owned oil company Strategic Fuel Fund (SFF) will own and operate Block B2; In 2018, South Africa agreed to invest $1billion into South Sudan’s energy infrastructure; South Sudan has the third-largest oil reserves in sub-Saharan Africa, estimated at 3.5 billion barrels, with just 30 percent of the country explored.
South Africa today signed an exploration and production sharing agreement (EPSA) with South Sudan for Block B2.
The deal – which is strategic for South Africa as an energy consumer – will see Block B2 operated by the state-owned Strategic Fuel Fund (SFF), the Ministry of Petroleum and Nilepet – the national oil company of the Republic of South Sudan. This is the second EPSA signed since South Sudan gained independence in 2012 and shows progress for the country’s oil industry as production resumes at existing oilfields and new exploration begins.
South Sudan is an established, world-class petroleum producing region, whose territory includes a large part of the Cretaceous rift basin system that has proved petroliferous in Chad and Niger as well as Sudan. It currently produces 160,000 bopd, and aims to increase production capacity to 270,000 bopd by the end of the year. The country has the third-largest oil reserves in sub-Saharan Africa, estimated at 3.5 billion barrels, with just 30 percent of the country explored to date.
Under this new EPSA which includes a six-year exploration period, the SFF alongside Nilepet, will launch a comprehensive aero gravity survey exploration campaign, seismic acquisition and drilling wells with great prospectivity. The SFF will also invest in capacity building initiatives, training of South Sudanese citizens, investing in social and community development projects and ensuring local content and women empowerment.
“The petroleum resources of Block B2 are vast. For South Sudan to reach its target of bringing back production levels of around 350,000 barrels of oil per day (bopd) and beyond, we need committed new entrants like the SFF,” said the Minister of Petroleum Hon. Amb. Ezekiel Lol Gatkuoth. “South Sudan has great potential, yet our country remains vastly under-explored, and we believe the entry of new players like the SFF will lead to new world-class discoveries very soon given the aggressive exploration program and great petroleum viability of Block B3. This will support South Sudan’s economic revival and improve trade with other African countries.”
“We are bullish about this strategic and unique opportunity into Block B2 with great petroleum potential. It provides South Africa with a chance to further strengthen its energy security while entering one of the top three most lucrative onshore oil and gas markets in Africa,” said Hon. Jeff Radebe, South African Energy Minister. “South Africa has supported peace and economic development in South Sudan since the country’s independence and this is the continuation of long-term cooperation between both our countries and people. Investment is key to guaranteeing the economic progress of South Sudan”
Last year, South Africa’s Department of Energy pledged to invest $1 billion into South Sudan’s petroleum industry, with the aim of securing affordable energy supplies for South Africa. The countries are now in talks to set up a 60,000 barrel per day refinery to supply oil products to the local market in South Sudan, as well as to secure exports to Ethiopia and other neighboring countries.
“SFF is looking forward to working with our partners in South Sudan to make discoveries on this block. We believe there are highly significant quantities of oil in Block B2. Our work program and acquisition of new seismic will reveal better information on various structures. We look forward to a few wildcats and appraisal wells in the near future. We are thankful to the Government of South Sudan for this opportunity,” stated Godfrey Moagi, acting CEO of SFF.
The B2 area includes productive parts of the Muglad Basin and is part of the 120,000km2 Block B which was split into three in 2012. There has been much interest in South Sudan’s Block B acreages since the entry of Oranto Petroleum to Block B3 in 2017. Much of South Sudan’s oil and gas blocks are yet to be fully explored and resources assessed.
The CEF group is responsible for discovering solutions that will meet South Africa’s energy needs. Through its subsidiaries, the Petroleum Oil and Gas Corporation of South Africa (PetroSA), Petroleum Agency South Africa (PASA), Strategic Fuel Fund (SFF), African Exploration Mining and Finance Corporation (AEMFC) and iGas, the group also manages the operations and development of the country’s oil and gas assets.


Today, I have to ask this question, because there been so many fault-lines, so many bothering revelations along the way. Since the Khartoum Declaration last year to the R-ARCSS agreement that was supposed to be initiated and finalized by May 12th 2019. However, this is not happening, as the stakeholders, parties and all sorts of functions are keeping pushing it away. If not the TGoNU is currently also paying lobbyist in the United States not to put pressure on them finalizing one piece of it, the Hybrid Court. Alas, there is the mere question from me today. Was it all built on the wrong foundation, on a false pretext and a false hope?
By all means, I wish it isn’t so. Because the Republic of South Sudan. Needs peace, needs diplomatic efforts and need to be rebuilt. This will be painful, as the suffering and time of warlords are in the veins of the current leadership. Where everyone who disagrees starts their own armed rebellion and besiege any given territory, instead of building up a function and institutionalized state. Maybe, the stakeholders wasn’t interested in that, if they were, maybe they wouldn’t have invested so much in guns and training of personnel, right?
This is what it all seems, that the ones steering the ship has been buying time. Establishing networks for trade of resources, to again secure the ability for more prosperous warfare. Because, why the hassle of talk, when you can get rid of the person your supposed to talk too. I know it is sinister, raw and brutal, but for a Republic to have such vast amounts of people in Refugee camps in the neighbour countries, for Protection of Civilians (PoC) sites and Peacekeepers. Surely, they are amass in issues, which needs to be resolved. Not only knit-picking illegal gold smuggling for the heist of the stakeholders at this current day. But the whole system created by the warlords, the ones who used their armies and their rebels. Who are all now nearly together, accept a few chosen groups who isn’t there or saying it is dying already.
I don’t know, but if this seems like buying time. It seems more likely now. That the ones who are getting their spears, their shields and the cash-flow for more possible violence later. Who knows right? But why didn’t the TGoNU work harder with the stakeholders like SPLM/A-IO, SPLM-FD, SSOA or anyone else.
Let me say this again. I hope I am dead wrong, that they are really serious and want to finalize the implementation of the R-ARCSS. Since, it seems like this. The only good is that they are together in Addis Ababa declaring the resolution today, but does it has any value? Or is the asking for money for implementation the key aspect of it all?
Because, the state was together with all parties was supposed to be finished next week, but now has postponed it six more months. This is really a sign to come, unless there are some signals and proofs of implementation, that is showing pure intent. Not just paying Gainful Solutions or anyone to stifle the process. Having illegal deployment of foreign forces in parts of the Republic. Therefore, there is enough warning signs, which isn’t only the lack of will to implement it.
So, lets hope this is not to buy time… not to buy time, but to actually do this correctly. Peace.











Another day, another revealing story from the Republic of South Sudan. I will bring especially some few extract from a report to shed a light on some misgivings in the Republic. This as the state is still preparing and building on the R-ARCSS agreement and cease-fire. Therefore, the Transitional Government of National Unity (TGoNU) under the leadership of President Salva Kiir Mayardit.
What this report is doing is verifying existing news, also showing the systemic inefficiencies by the authorities itself. As they have not moved forward or not swiftly enough. However, there are several of revelations in the report, but I will just show three of them. First the way the NSS got rid of two government dissidents, as they kidnapped in Kenya and executed at the detention facilities in Luri. Also, showing how the UPDF is inside South Sudan and also the illegal gold export from the Republic. Finally dropping the conclusions of the experts, because that is important.
Execution of Idri and Luak in January 2018:
“The Panel has received and reviewed a number of independent reports from multiple, highly credible and well-placed sources. These accounts corroborate each other across a number of key details, leading the Panel to conclude that it is highly probable that Aggrey Idri and Dong Samuel Luak were executed by Internal Security Bureau agents at the Luri facility on 30 January 2017, on orders from the commander of the National Security Service training and detention facilities in Luri, the Commander of the National Security Service Central Division and, ultimately, Lieutenant General Akol Koor Kuc. Their tragic deaths offer a sobering reflection of the challenges posed to the implementation of the revitalized peace agreement by the violent legacy of South Sudan’s conflicts, while highlighting the increasingly unchecked discretionary power of the National Security Service” (UNSC, P: 15, 2019).
UPDF inside South Sudan:
“Also in its interim report, the Panel noted the presence of armed Uganda People’s Defence Forces in the Equatorias. Soldiers from these Forces continued to be present in Yei River State in subsequent months, including in Yei town and along its connecting roads between 18 and 21 January 2019. Reports suggest the presence of a significant number of troops (40-50) as well as around six military vehicles. The Panel is not aware of any exemption having been sought for this deployment, as required by paragraph 5 of resolution 2428 (2018). In a meeting with the Panel, representatives of the Uganda People’s Defence Forces confirmed the presence of these forces in Yei, noting that they were providing protection to Ugandan engineers who were surveying the road between Yei and Uganda. The Panel also discussed this deployment with the Minister of Defence of South Sudan, who reiterated that the Uganda People’s Defence Forces were there for the purpose of protecting engineers” (UNSC, P: 26, 2019).
Illegal Gold Trade:
“The trade in gold in South Sudan is almost entirely unregulated and there is no effective legal framework to regulate the export of South Sudanese gold. Few export certificates have been issued and no gold exports are recorded. While also partly the consequence of limited state capacity, all of South Sudan’s gold exports are therefore, in principle, illegal” (…) “A significant number of these traders are foreign nationals, with the majority of gold “smuggled” across the border into Uganda where it is sold in border towns such as Arua and Koboko, but also in Entebbe and Kampala. Members of both SPLM/A-IO and NAS confirmed to the Panel that they had sold gold mined in South Sudan in Uganda. Some smaller volumes are also traded directly to Dubai via Juba International Airport. As is common in the region, most gold is hand-carried and transported by road or on civilian flights” (UNSC, P: 37, 2019).
Conclusions:
“The revitalized peace agreement represents a significant milestone in efforts to bring an end to the conflict in South Sudan. The outcome of the agreement, however, remains uncertain, as challenges continue to face its implementation, particularly with regard to accountability, security provisions, financial transparency and the devolution of centralized power. Careful monitoring of the implementation process will therefore be essential to providing effective and meaningful support to the accord” (UNSC, P: 44, 2019).
This is a lot of information, also very striking. That is the sort of stories, that break a heart. This shows the acts of the government, the techniques and choices of oppression. The execution of these two gentlemen are really proof of how far the government goes to get rid of dissidents and activists.
Also, how it decides not to follow protocol to have a foreign force within its borders. Even for the most noble causes, the UPDF shouldn’t be there, unless the TGoNU had sought the exemption as it should. Therefore, the deployment is illegal.
Just like the gold-trade from South Sudan, which is hugely exported through Entebbe and Kampala. This meaning the Ugandan traders are earning fortunes on the illegal gold trade from South Sudan. That shows the reasons for the closeness between Juba and Kampala. As they are both earning on the misfortune there. It seems also intentionally from the state, as they have no legislation or certification of it. This is so, that its not traceable.
Surely, this report is damaging to the regime in Juba. This whole report is not a good look, but should be a reality check, if it want to be transparent and be just. The stories told in this report is really heartbreaking. All the various testimonies done to the UN Experts are really shattering.
Like this one: “When we arrived here we thought we were safe. Women go out to fetch water or fire wood they are raped. Recently, in late January, a 30-year-old and a 13-year-old left the POC and just outside they were both raped. You can talk to both survivors – they are in this camp. We are humiliated and we have scars and mine has not healed since that time, a reminder that we are hunted like animals to be humiliated.” (…) “Interviews with confidential sources, in Bentiu, February 2019” (UNSC, P: 23, 2019).
Still, in the midst of the Republic, the innocent civilians are still suffering. The rebels, the state officials and the authorities are still not keeping them safe. The United Nations are also not able or capable to keep them safe either. This is all troublesome and its just sad to read, that even more people are scorn by the ones with weapons. There is no end and the cycle of violence has to end.
Still, there are people working for the cease-fire for the peace. To Save the Last Train. However, these people combined with the ones in power, need to step-up and show their intentions. Government of South Sudan should address the concerns and recommendations of the UN Experts Reports of April 2019. Not just talk, but actually do something about it. Peace.
Reference:
United Nations Security Council (UNSC) Report – ‘Final report of the Panel of Experts on South Sudan submitted pursuant to resolution 2428 (2018)’ – S/2019/301

The members of the troika (Norway, the United Kingdom and the United States) have made a new statement on the South Sudan peace process.
OSLO, Norway, April 30, 2019 – Read the statement here:
The members of the Troika (Norway, the United Kingdom, and the United States) express their appreciation of IGAD’s role in advancing the South Sudan peace process. The September 2018 Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS), represents an opportunity to build peace and stability in South Sudan.
The R-ARCSS is at a critical juncture, with the scheduled date for the formation of the transitional government days away. The parties to the conflict and in the region need to redouble their efforts to move the peace process forward. To demonstrate political will, we urge the parties to work together in a spirit of compromise to build trust among South Sudanese leaders and the South Sudanese people.
The agreement has brought a welcome reduction in violence in most parts of the country; but civilians are bearing the brunt of continued fighting, and a troubling pattern of sexual violence persists.
The implementation of the R-ARCSS is behind schedule and key benchmarks have been missed. We urge the parties to agree on priorities and implement their commitments. Any decision on forming the transitional government as scheduled or delaying to a later date should be made through consensus of the parties. If the parties come to a consensus that a delay is required, they should develop an achievable plan to resolve outstanding issues and move forward in a defined timeframe. An open-ended delay could slow momentum and put the peace process at risk. Regardless of a delay in the formation of the transitional government, elections should be held by March 13, 2022, as originally scheduled under the R-ARCSS.
We support IGAD’s Special Envoy Ismail Wais in his efforts to engage non-signatories of R-ARCSS. It is crucial that all South Sudanese support this opportunity for peace and make the process inclusive. IGAD will also have a key role in overseeing discussions about the formation of the transitional government, including at the forthcoming summit in Addis Ababa. We appeal to IGAD to appoint a permanent chair to the Revitalized-Joint Monitoring and Evaluation Committee, which monitors the agreement’s implementation.
The Troika reiterates its commitment to the people of South Sudan and urges the parties and the region to seize this opportunity for Peace.