South Africa Seeks Survey of South Sudan Oil Block B2
ENERGY · SOUTH AFRICA
Key Facts
- —The country South Africa. Its new state oil company SANPC controls Block B2 in South Sudan’s Jonglei State, with a 90% stake per Business Times.
- —Why it matters Nearly US$20 million of South African public money has gone into the block since a deal over seven years ago. No oil has flowed.
- —Why now SANPC briefed bidders on Friday 9 October. Two days earlier, President Cyril Ramaphosa hosted South Sudan’s President Salva Kiir in Pretoria.
- —What happened SANPC is seeking a contractor to scout about 1,700 square kilometres of floodplain north of Bor before a seismic survey. Bids close on Wednesday 21 October.
- —The numbers About R330 million (nearly US$20 million) spent so far, Business Times reported, citing SANPC’s spokesperson. South Sudan is said to hold about 3.5 billion barrels of proven reserves.
- —What it means for US readers No US-listed company is involved. The project is a test of oil exploration in a country whose exports depend on a pipeline through war-torn Sudan.
- —Still open Whether any contractor bids, what the survey will cost, and whether exploration wells will ever be drilled. Results of exploration decide production, SANPC says.
South Africa’s state oil company is pushing ahead with a long-stalled South Sudan oil block. Floods, swamps and unexploded bombs stand in the way. The South African National Petroleum Company (SANPC) has invited bids for a terrain survey of Block B2 in Jonglei State. For foreign readers, it is a small window on how African state oil firms chase reserves in conflict zones.
The request for proposals, number SANPC/2026/015, was issued on Wednesday 30 September and is listed on South Africa’s national eTenders portal. A compulsory online briefing for bidders took place on Friday 9 October. Proposals close at 11:00 on Wednesday 21 October.
Johannesburg’s Business Times, which reported the tender on Saturday 10 October, said about R330 million (nearly US$20 million) has already been spent on the project, citing SANPC’s spokesperson. At the Reserve Bank’s rate of R16.53 per dollar on Friday 9 October, that sum equals about US$19.96 million.
What the Tender Asks For
SANPC is a new state-owned company formed by merging PetroSA, the gas developer iGas and the Strategic Fuel Fund. The tender says it took over all of their operations, including the Block B2 exploration and production sharing agreement.
Its partners in that agreement are the Government of South Sudan and Nile Petroleum Corporation, South Sudan’s national oil company. Business Times reported that the Strategic Fuel Fund holds 90% of the block and Nile Petroleum the remaining 10%.
The contractor would study an area in the Bor–Twic region north of Bor town, stretching east from the White Nile. The work combines satellite imagery covering about 1,700 square kilometres with limited ground checks. Crews are expected to work from access points on the Pibor highway.
The outputs are meant to guide a later 2D seismic survey, the first step in mapping rock layers that might hold oil. SANPC wants to know where base camps, airstrips and heavy vehicles can go. It also wants advice on whether to use vibration trucks or dynamite as the seismic source.
The document is frank about the obstacles. It lists seasonal flooding, poor roads, heavy clay soils, the Sudd wetlands, crocodiles and hippos, and security risks including unexploded ordnance. Any field locations must be checked against ordnance maps supplied by South Sudanese authorities.
A Deal With a Long History
Business Times said the agreement was struck more than seven years ago under Jeff Radebe, then South Africa’s energy minister. The paper recalled Sunday Times reports that the Central Energy Fund, the state energy holding company, had advised Radebe against it. It also reported that the original deal envisaged a 60,000 barrel-a-day refinery.
SANPC rejects the idea that the project is failing. Its spokesperson, Jacky Mashapu, told Business Times the work is funded solely from the Strategic Fuel Fund’s approved budget. He said the project was put on hold for three years during Covid, which South Sudan recognised as force majeure.
“The project is in the exploration phase,” Mashapu said. After successful exploration ending in drilled wells, he added, it would move to an appraisal phase. He added that the block “has a very high potential of success subject to inherent exploration risk.”
The Diplomatic Backdrop
The tender briefing came two days after a meeting between the two presidents. Cyril Ramaphosa is South Africa’s president and leader of the African National Congress. He received South Sudan’s president, Salva Kiir Mayardit, in Pretoria on Wednesday 7 October.
The Presidency said Ramaphosa stressed full adherence to South Sudan’s 2018 peace agreement, known by its initials R-ARCSS. He called for an inclusive electoral process ahead of the December elections. The statement did not mention oil.
Juba broadcaster Eye Radio reported the same message, quoting presidential spokesperson Vincent Magwenya. Background on the vote is in South Sudan Election 2026 Faces a Credibility Test.
What It Means for US Readers
There is no direct exposure for US investors. SANPC is wholly state-owned and not listed, and no American company is named in the tender.
The wider point is risk. South Sudan is landlocked and ships almost all its crude through pipelines across Sudan. There, the army and the Rapid Support Forces are at war. Business Times noted that fighting has damaged pipelines and pump stations and repeatedly choked output.
That makes any new barrels from this South Sudan oil block a long-dated prospect. For US oil markets the volumes involved are small. For readers following US policy in the region, the bigger test is the December vote that Ramaphosa raised with Kiir. For a primer on the country, see South Sudan Explained 2026, the World’s Youngest Country.
What Is Not Known
The tender does not give a budget for the survey, and SANPC has not said when seismic work might begin. It is not known how many firms attended the briefing on 9 October.
The 90% stake, the refinery plan and the reserve estimate come from Business Times. No primary document confirming them was available. The terms of the production sharing agreement have not been published. Whether any oil will be found remains the central uncertainty, as with all exploration.
Frequently Asked Questions
What is Block B2 in South Sudan?
An oil exploration block in Jonglei State, north of Bor town. South Africa’s state oil company SANPC runs it under a production sharing agreement with South Sudan’s government and Nile Petroleum Corporation.
What has SANPC tendered for?
A terrain reconnaissance of about 1,700 square kilometres, using satellite data and limited ground checks, to plan a later 2D seismic survey. Bids close on Wednesday 21 October 2026.
How much has South Africa spent on the project?
About R330 million (nearly US$20 million), Business Times reported, citing SANPC’s spokesperson. It came from the Strategic Fuel Fund’s approved budget.
Is the South Sudan oil block producing oil?
No. SANPC says the project is still in the exploration phase. Wells would have to be drilled and appraised before any decision on production.
Does this affect US investors?
Not directly. SANPC is state-owned and unlisted, and no US company is named in the tender. The main relevance is as a gauge of oil investment risk in South Sudan.
Sources: South African National Petroleum Company, RFP SANPC/2026/015 on the National Treasury eTenders portal (issued 30 September 2026); The Presidency, President Ramaphosa meets President Salva Kiir of South Sudan (7 October 2026); Business Times, SA pushes ahead with troubled South Sudan oil deal (10 October 2026); Eye Radio, Ramaphosa stresses inclusive elections during meeting with Kiir in Pretoria (8 October 2026); South African Reserve Bank, rand per US dollar, 9 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief