Tharjiath oilfield in Unity State. (Photo: Courtesy).

The Council of Ministers has approved a $3 billion proposal to build a new oil refinery in Tharjiath, Unity State.

The decision was made during a Cabinet meeting on Friday, following a presentation by Finance Minister Marial Dongrin Ater, who highlighted the need for a larger facility to complement the existing smaller refinery in the area.

Information Minister Michael Makuei confirmed that the new refinery project will be a joint venture, with NILEPET holding a 30% stake and private company Quad Layer Holdings owning the remaining 70%.

While details regarding the refinery’s capacity and construction timeline were not provided, the project is seen as a significant step toward enhancing South Sudan’s oil production and refining capabilities.

It is expected to help reduce reliance on imported petroleum products and provide new job opportunities, further contributing to the country’s economic growth.

“We listened to a presentation from the Minister of Finance on building a new refinery in Tharjiath Unity State…  of course, as you know very well, there is already a refinery there, but that refinery is small,” Makuei addressed the media after the Cabinet meeting in Juba.

“That new refinery will be to a value of the sum of $3 billion, and this will be by 30% NILPET and 70% another company called Quad Layer Holdings. This recommendation was approved by the Cabinet,” he said.

In April 2024, the Bentiu Oil Refinery in Unity State was expected to become fully operational, with a capacity to supply local markets with 10,000 barrels of fuel per day, according to an official statement.

Furthermore, on August 24, 2024, a Chinese company signed an agreement with South Sudan’s state-owned Nile Petroleum Corporation (NILEPET) to build modern oil refinery and storage facilities, as reported by Xinhua.