South Sudan has announced plans to build a new US$3 billion oil refinery at the Tharjiath field in Unity State, one of the country’s most productive oil regions. Although Tharjiath already hosts a refinery, its limited processing capacity and poor road access have restricted the efficient transport of refined products, according to Information Minister Michael Makuei Lueth. The initiative adds to a growing list of energy infrastructure projects across Africa aimed at achieving greater self-sufficiency.
The refinery will be developed under a public-private partnership, with South Sudan’s national oil company, Nilepet, holding a 30% share. The remaining 70% will be owned by Quad Layer Holdings, which will also construct the critical road networks needed to transport fuel from the facility to domestic and regional markets. Both companies will fully finance the refinery, with the government expected to repay its portion once production begins.
Following Cabinet approval, detailed feasibility studies will determine the refinery’s final processing capacity and technical design before any contracts are finalized. The project is strategically important for South Sudan, where oil revenue represents about 95% of public expenditure. By enhancing domestic refining capabilities, the government hopes to reduce reliance on Sudan’s export infrastructure and increase the country’s control over its own energy value chain.
Momentum is also growing through international partnerships. Chinese engineering company Shengli Oilfield Keer Engineering and Construction Company (Sokec) recently signed an MoU with Nilepet to build modern refinery and storage facilities. At the signing ceremony in Juba, Sokec President Wu Song said the company will “embark on investment without hesitation,” emphasizing its goal of strengthening production capacity and operational efficiency.
Meanwhile, South Sudan is revisiting long-standing plans to diversify its crude oil transport routes. The government has revived proposals to build or truck oil through Kenya, Djibouti, Ethiopia, and Sudan. Currently, Port Sudan remains the only route for South Sudanese crude to reach the international market. Earlier discussions included a feasibility study by a Toyota Group affiliate for a pipeline through Kenya, though analysts note it would require additional crude reserves to be economically viable.
Regional cooperation is also shaping the future of South Sudan’s oil sector. On July 7, 2024, South Sudan and Ethiopia agreed to strengthen border security and expand trade, including developing new oil transportation infrastructure. Officials from both countries described the talks as “cordial and honest,” focusing on shared priorities such as infrastructure, commerce, and security.
A key outcome of the meeting was a joint plan to build a highway linking South Sudan’s Upper Nile State to Ethiopia’s Gambella region and onward to Djibouti’s port. South Sudan’s parliament recently approved $778 million for the construction of this cross-border highway. The project aims to reduce smuggling, improve border management, and increase legal trade between the two countries.
“This project represents an opportunity to consolidate peace and stability in the region through economic cooperation,” said Semaya K. Kumba, the country’s Deputy Minister of Foreign Affairs and International Cooperation. With improved roads and security measures, officials expect border trade to expand significantly.
South Sudan’s new refinery and infrastructure initiatives signal a broader effort to strengthen the country’s energy independence, modernize its oil sector, and build more resilient trade routes—key steps toward stabilizing the young nation’s economy.