South Sudan and South Africa have signed a memorandum of understanding to construct an oil refinery in the Upper Nile region.
According to the Minister of Petroleum, the refinery planned to refine 60,000 barrels per day, will be situated either in Palouch or Pagak.
Ezekiel Lol said the aim is to supply Ethiopia with ready products for consumption.
“We will be having it in Palouch or Pagak so that we can supply Ethiopia with refined products,” he spoke on the state run TV-SSBC on Friday.
The two countries also agreed to explore more blocks with potential crude oil in the region.
“We will be also working together with South Africa to acquire need blocks.We have a lot of blocks that are empty; B1 and B2, E1 and E2, and A1 all the way to A6,” Minister Lol said.
For his part, the South African Energy Minister, Jeff Radebe said: “We are committing ourselves as South Africa to leave no stone unturned in ensuring that we cooperate with my brother Ezekiel and their department as well as our respective entities and consortium that signed the agreement today[Friday]
Both ministers signed the MOU on Friday in Juba.