Drilling rigs on way to south Sudan

JUBA – The British oil company White Nile has started moving drilling equipment from Kenya towards southern Sudan to begin exploration work in a disputed 67 000 square km concession, a company official said.

French energy giant Total SA disputes White Nile’s contract with the southern Sudan government, which has given the British company part of an oil exploration block that the central government had allocated to Total. White Nile is 50 per cent owned by south Sudan’s state petroleum firm Nilepet.Philip Ward, White Nile’s chief operations officer, told Reuters late on Wednesday: “Our drilling equipment has arrived in Mombasa (in Kenya).”It is now en route to our drilling area.”The government of southern Sudan will provide security for the convoy of about 100 trucks and has agreed to let in the equipment free of tax, he added.White Nile has subcontracted drilling to the Dafora Group of South Africa and drilling should start in early April, he said.”This is basically exploratory drilling.After we drill these wells we have to do 3D seismic, which will determine the size of the reservoir.”Then we have to do pre-development drilling.Two or three wells won’t produce 100 000 barrels a day.You need 20 or 30 wells,” he added.White Nile estimates that it has three billion to five billion barrels of oil in its block Ba concession, but it will take four years before any oil starts to flow from the concession.Ward said that in the meantime White Nile will allocate each county in the area US$20 000 a month for community development, as long as the local authorities can say how they are spending it.Nampa-ReutersWhite Nile is 50 per cent owned by south Sudan’s state petroleum firm Nilepet.Philip Ward, White Nile’s chief operations officer, told Reuters late on Wednesday: “Our drilling equipment has arrived in Mombasa (in Kenya).”It is now en route to our drilling area.”The government of southern Sudan will provide security for the convoy of about 100 trucks and has agreed to let in the equipment free of tax, he added.White Nile has subcontracted drilling to the Dafora Group of South Africa and drilling should start in early April, he said.”This is basically exploratory drilling.After we drill these wells we have to do 3D seismic, which will determine the size of the reservoir.”Then we have to do pre-development drilling.Two or three wells won’t produce 100 000 barrels a day.You need 20 or 30 wells,” he added.White Nile estimates that it has three billion to five billion barrels of oil in its block Ba concession, but it will take four years before any oil starts to flow from the concession.Ward said that in the meantime White Nile will allocate each county in the area US$20 000 a month for community development, as long as the local authorities can say how they are spending it.Nampa-Reuters