South Sudan Hopes to Attract New Oil Investment

The South Sudanese Energy Ministry's Oct. 29 announcement that it will auction off a number of oil concessions by the end of 2013 illustrates the country's need to attract foreign oil companies in order to increase oil production and investments. South Sudan's economic dependence on its energy resources, as well as its ability to move oil exports through Sudan's pipelines, has set the stage for Juba to try to initiate development of its largest oil block. However, uncertainties about the size of the block's reserves, infrastructure limitations and the time required to develop these concessions could make this auction little more than a short-term influx of foreign funds.