The Ministry of Petroleum has signed an agreement awarding oil exploration in block B3 to an international company, Oranto.

The agreement provides that exploration will start immediately in Block B, which covers parts of former Jonglei, Lakes, and Central Equatoria states.

On Monday, Petroleum Minister Ezekiel Lol Gatkuoth signed on behalf of the government, and chairman Prince Arthur Eze on behalf of his company, Oranto Oil Ltd.

According to the agreement, the block B3 has a potential of more than three billion barrels of oil.

“They are sharing this block with our National Company, Nile Petroleum Corporation, and the distribution of the shares of this block is, 90% will go to Oranto Petroleum Ltd and 10% will go to our the Nilepet,” Mr. Lol said after signing the deal.

The company will take 90 percent of the shares in the block and the government takes 10 percent through its oil firm, Nilepet.

The oil company is operating in several countries, including Nigeria, Equatorial Guinea,  Senegal , Uganda , Liberia ,Ghana, São Tomé, Ivory Coast, Sere Leon, United Kingdom, Benin Republic,  Namibia and USA.

Arthur also spoke on behalf of the company.

He said Oranto Petroleum will invest $500 million to develop Block B3, launching a comprehensive exploration campaign starting immediately.

“We are starting immediately, according to the contract; we have to do what we have agreed,” he said.  “This may coast between 2 to 3 billion dollars, and we shall employ your people.”

Currently, South Sudan produces 130 barrels per day in the oilfields in the former Upper Nile State.