In early May 2019, the South African state-owned Strategic Fuel Fund (SFF) was awarded Block B2 in Muglad/Melut basin, South Sudan. SFF will operate the block in partnership with Nilepet and the Ministry of Petroleum. The EPSA includes a six-year exploration period through which both aerogravity and seismic surveys will be acquired, likely followed by drilling operations. SFFâs CEO, Mr Godfrey Moagi stated that âthere 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,"  Block B2 is located in southern South Sudan between the Muglad and Melut basins and has a surface of approximately 47,800 sq km. There is only one well drilled in the block to test the southern extension of the Muglad Basin in April 2007 by White Nile Ltd to a TD of 2,408 m the with LowerâUpper Cretaceous horizons as primary objectives. The well was suspended and abandoned with non-reported results. Block B2 is also covered by one gravity and one magnetic surveys acquired by Total in the 1980s.   Timeline  Block B was awarded to Total in 1980 by the Republic of Sudan (north) with an area of 118,348 sq km for a 40-year E&P period.   Between 1985 and 2004, Total suspended its exploration activities in Sudan due to security issues. However, the company was paying USD 1.5 million per year to the Republic of Sudan to keep the exploration rights in Block B.   South Sudan gained its independence in 2011.  In 2012, the government of South Sudan decided to divide Block B into three smaller blocks: B1, B2 and B3. The government said that the area âcontained the nationâs largest untapped oil depositâ and wanted to promote the exploration with the entrance of new players following the conflict. In June 2013, it was understood that Total was going to be awarded the Block B1 and that it would be operated under a joint venture between Exxon Mobil and Kufpec. However, negotiations were never reported as completed.   In December 2013, war broke out in South Sudan between the Government and Sudan Peopleâs Liberation Movement. The conflict interrupted the investment of foreign companies in the country and led to tough conditions to operate (lack of security, poor infrastructure, weak communication system, etc.)   In its 2016 annual report published in March 2017, Total addressed that it was still in negotiations with the South Sudanese government to resume exploration activities in the blocks B1 and B2.   Press of 24 April 2017 reported that South Sudanâs minister of Petroleum, Ezekiel Lol Gatkuoth, said that Blocks B1 and B2 were open for direct negotiations. This was after talks with Total SA, Tullow Oil and Kufpec were over âirreconcilable differencesâ. Mr Gatkuoth said that discrepancies were related to the recovery costs, taxes and exploration periods.   Block B3 was awarded to Oranto Petroleum in early March 2017.   In late February 2018, Lol Gatkuoth announced in an interview that a deal with Tullow, Total and Kufpec over blocks B1 and B2 had been almost reached. According to Lol Gatkuoth, Total would get the 32.5% of working interest, Tullow the 27.5%, Kufpec the 30% and the Nilepet the remaining 10% on blocks B1 and B2 under a PSA signed before the end of 2018.   In July 2018, the Minister announced that talks with Total, Tullow and Kufpec about blocks B1 and B2 were called off. Conversations were broken down several times in 2017 as the companies were supposed to have imposed strict contract terms to South Sudan.  In early April 2019, Lol Gatkuoth reiterated that blocks B1 and B2 in were open for international companies. Lol Gatkuoth also reported that contract terms were changed on respect to previous ones with a new three to five-year exploration period as well as approximately 50% of cost recovery limit.
South Sudan, Block B3