william anyak

PRESENTATION TO THE EAST AFRICA OIL & GAS SUMMIT 2012

William Anyak DengNovember 15 & 16th 2012

Nairobi, Kenya

East Africa Oil & Gas Summit 2012 3

Officially known as the Republic of South Sudan, it is landlocked Country located in East Africa.

Bordered by Ethiopia to the East, Kenya to the South-East, Uganda to the South, DRC to the South-West , CAR (Central African Republic) to West and Sudan to the North.

South Sudan covers an area of about 644,329 Km2

Juba is the capital city of South Sudan with population of about 372,413.

Population of South Sudan is estimated to be 8,260,490 (as of July, 2010).

Languages: English is the official language, but over 60 indigenous languages are spoken in South Sudan. They are classified under the Nilo-saharan language family, which has two divisions eastern Sudanic and Central Sudanic.


https://www.cia.gov/cia/publications/factbook/rankorder/2119rank.html

Republic of South Sudan is divided into ten States, and States formed or subdivided into counties ( 86 Counties).

Level of Development: As new independent Country/Nation, South Sudan is faced with a lot of developmental challenges e.g infrastructures …etc


SOUTH SUDAN


The major tectonic and structural features of Central and East Africa Rifts influenced the tectonic evolution of South Sudan rifts.

The first major trend is the NW-SE or NNW-SSE corresponding to the majority of grabens.

The second trend is NS or NNE-SSW directions corresponding to old African lineaments.

There is huge difference in the tectonic and structural configuration of the two major basins of South Sudan.


Muglad Basin

Melut Basin


Source: MPM

The geology of South Sudan is extremely diverse with variety of rock types.

Mesozoic rift related basins in South Sudan have been explored and indicate basins filled up by thick pile of continental sediments.

Geological setting of the rifts basins are characterized by rift structures which formed intercontinental basins bordered on all sides by an orogenic terrain.


Based on Regional geology, rift related basins developed in South Sudan in the late Jurassic time as a results of separation of East and West Gondwana.

These rift basins are regionally linked to Central African Rift System.

The Cretaceous- Tertiary rift basins of CARS are extensional to transtensional and contain up to7500 m of Cretaceous continental clastics.

Oil and Gas discoveries have been made in most of these basins.

Heavy to light oil and gas accumulation are situated in lower and upper Cretaceous fluvial to lacustrine sandstone reservoirs.


The framework of the petroleum system and its components are highly recognized in South Sudan Basins, mainly, (Muglad & Melut)

The elements of petroleum system are linked with the tectono-stratigraphic evolution of the basins

Reservoir are characterized by multiple pay zones in sandstones (Ghazal, Zarga, Aradeiba, and Bentiu) formations of ( Senonian – Cenomanian) with depth ranging between 3,700 ft. - 8,300 ft in Muglad basin.

Abu Gabra shale (lacustrine)is the proven Source rocks developed in most basins and is a primary lower Cretaceous.

Seal are provided by intra-reservoir claystones and shale which provide the upper seal and fault while dip closures are provided by lateral seal.


Traps, faulted block is the main trap type controlled by faulted & tilted basement.


o Cretaceous deposition of Muglad basin is generally characterized by two sedimentary cycles; both coarsening upwards.

• Cycle I: Abu Gabra and Bentiu Formations.• Abu Gabra dominates the basin mainly as a source,

but never the less as a reservoir rock as seen in the Bentiu Formation.

• Cycle II: Darfur and Amal Formations.• Darfur (Aradeiba, Ghazal, Zarga and Baraka ) and

Amal Formations are all as reservoirs.

o Abu-Gabra is the main source rock in South Sudan, show large scale lacustrine deposition


Most of the oil is accumulated in the lower Cretaceous Bentiu formation and the Upper Cretaceous Aradeiba formation.

Melut basin stratigraphic sections is comprised of sandstones and claystones.

Yabus and Smaa Fm. in lower Palaeocene is the main pay zone.


Source: MPM East Africa Oil & Gas Summit 2012 15

With South Sudan independence on 9th /July/2012 existing oil contracts were renegotiated and revised.

Three blocks signed Transition Agreement (TA), with the producing companies, in name, Dar Petroleum Operating Company (DPOC), Greater Pioneer Operating Company (GPOC), and Sudd Operating Company (SPOC).


• Block 1, 2&4• This contract was signed on first March 1997, effectively from 29 th

/Nov/1996.• The contract was divided into two categories• (a) Exploration blocks ( Blocks 1a,2a,4)• (b) Development blocks ( Blocks 1b, 2b)

• Block 3 & 7• This block contract was signed on 12th / March/ 2000• The contract also divided into Exploration & Development blocks.• The contract area is 74,421Km2.

• Block 5A• This contract was signed on 6th /Feb/1997 (EPSA).• Covers Unity state, west of White Nile, Warrap State West and

Jonglei State to the east with 20,917 Km2.


• Block B:

• Total AS, signed an exploration and production sharing agreement in 1980.• This block covers most of the Jonglei State with 74,000 square-mile.

• Block E:

• Star Petroleum S.A. has signed and EPSA on 6th August 2010.• This Block Covers an area of 50.000Km2 located in Muglad Basin .

• Block 5B:

• June 2005, Nile Petroleum Corporation and ASCOM S.A., signed an agreement [ P.S.C.],

• The Block has an area of 20119 Km2 located in Muglad basin.• The Block is under exploration, acquisition of gravimetric, seismic and drilling

are under progress.



• Greater Nile Oil Pipeline:• Extends for 1600

Kilometers (990 mil).• Petrodar Pipeline:

• Extends for about 1400 kilometers (850 mil), with capacity of 500,000 bbl./d.

STOOIP

RECOVERY FACTOR EUR

PROD. CUM

RESERVES

GPOC 2587 34% 886 656 230

SPOC 2655 8% 221 42 179

DPOC 553 22% 1211 437 774

TOTAL 10745 22% 2318 1135 1183

Table: STOIIP in South Sudan ,2011


Estimated Ultimate Recovery at 2P. Production up to the end of 2011. Remain reserves (2P). Production before shut down,

recovery factor was 22%.

South Sudan proven oil reserves estimated to be about 7 billion barrels with daily production of 358000 bpd.

The highest production was in 2006/2007 in GPOC fields.

Production peaked and then declined .

January 2012 South Sudan Stop Production.


Average Daily Production in South Sudan Per Year


Table: Historical Production Figures

East Africa Oil & Gas Summit 2012

• Stability:

• Political stability is the corner stone for any oil exploration and development in South Sudan.

• Some of the oil fields fall a long the disputed border between Republic of South Sudan & Sudan.

• Risk to Investment:

• South Sudan has the possibilities for oil and gas exploration activities.

• Resources are available but lack of technical knowledge to evaluate.• Infrastructure:

• Pipeline: absence of pipeline represent great challenge to oil production.

• Refinery: lack of refinery causes great challenge to development.

23


Pipeline options proposed. S. Sudan Kenya Lamu . S. Sudan via Ethiopia to Dejibouti

Refineries Options proposed. Thiangrial, Located in Melut, Capacity of 20,000 bpd. Unity Refinery, located in UnityDesign capacity 5000 bpd. Tharjath Refinery, located in UnityWith capacity of 10,000 bpd. Akon Refinery, located in Warrap

• The costs and difficulties in planning and operating logistics for fields that lies in the sudd region.

• Shortages in skill technical labour force in the upstream sector.

• Produced water containing dissolved and emulsified crude oil constituents, natural salts, organic chemicals and trace metals.


South Sudan Basins, Gravity Map


South Sudan holds some of the most prospective and prolific hydrocarbon basins in the region.

Establish and develop strong in-house R&D to meet the challenges & problems of E&P.

Development of the infrastructures mainly the pipeline is important for the growth of E&P sector .

With diversity of resources also diversity in private foreign investment in the oil sector is highly recommended.


william anyak

Investor Relations