SA clams up on its hunt for oil in world's largest animal migration corridor
Millions of antelope migrate through the wetlands and grasslands of South Sudan every year in a global wildlife spectacle that outshines the more famous wildebeest and zebra migration of East Africa.
Whereas the Serengeti-Mara migration in Tanzania and Kenya involves around 1.3 million wildebeest and several hundred thousand zebra and gazelles, the annual Great Nile migration in South Sudan boasts between five and seven million antelope species, including kob, tiang, gazelle and reedbuck.
It is the 'largest known land mammal migration on Earth' according to the Convention on Migratory Species (CMS), a United Nations conservation treaty to safeguard the world's fast diminishing migratory species.
And yet it is here — in the very heartland of this spectacular animal migration route and Africa's largest wetland (the Sudd) — that the South African National Petroleum Company (SANPC) is hoping to strike oil and to also support the development of new petroleum refineries and export pipelines at a potential cost of up to $1-billion (more than R18-billion).
Project maps depict a three-phase exploration process that could lead to production wells, pipelines, refineries and other infrastructure located within the Badingilo National Park and large areas of riverine and grassland habitat used by animals circuiting between the Boma, Shambe and Gambella national parks.
Last year, contractors were also invited to bid on redrilling an old oil exploration well in the Jonglei region. It was abandoned in 2007 after the drilling equipment got stuck 2,200m underground at Kedelai, in the environmentally-sensitive floodplain of the White Nile River.
The more recent exploration project is part of an agreement between the South Sudan government's Nile Petroleum company and South Africa's Strategic Fuel Fund (SFF) — now part of the newly established SANPC.
Various feasibility studies and exploration projects have been rumbling on behind the scenes since former energy minister Jeff Radebe announced in 2019 that South Africa and South Sudan had signed an exploration and production sharing agreement and were engaged in talks to set up a 60,000 barrel per day refinery to supply oil products to the local market in South Sudan, as well as to secure exports to Ethiopia and other neighbouring countries.
A government media release at the time stated that the SA Department of Energy had ' pledged to invest $1-billion into South Sudan's petroleum industry, with the aim of securing affordable energy supplies for South Africa'.
That announcement came shortly before High Court Judge Owen Rogers found that attorney and former acting SSF chief executive Sibusiso Gamede had been paid more than R2,6-million in bribes by companies in Dubai and elsewhere for his role in facilitating the sell-off of South Africa's strategic stock of 10 million barrels of crude oil early in 2016.
Radebe attempted to backpedal swiftly on the potentially massive costs of the South Sudan venture after the Sunday Times published a news article in March 2019 under the headline: 'Jeff Radebe's dodgy $1bn oil deal'.
In response, Radebe issued a detailed statement in which he said: 'The stated $1-billion is the estimated cost of the full project including the oil block, pipeline and refinery, which will be spread over a period of 10 years. A project of this magnitude passes through various phases of approval and execution.'
Recalling the ANC's historic relationship with the Sudanese People's Liberation Army in fighting for their respective political liberations, Radebe said that the $1-billion was just 'an indicative figure at this stage.
'As with similar projects of this nature, upon completing the feasibility study, the project has a potential to attract other strategic partners and/or investors, which may include South Sudanese and South African companies.'
Read Radebe's full response to that article here.
Daily Maverick has requested details of the state entity's total expenditure in the South Sudan exploration venture over the last six years, but SANPC spokesperson Jacky Mashapu did not provide any figures.
Daily Maverick also requested copies of any environmental and social impact assessment (ESIA) reports on the exploration project, at least one of which was commissioned by the SFF, but Mashapu asserted that these reports were 'confidential'.
And the SFF declined to provide any details of a recent agreement it signed with the British-based Wildcat Petroleum group (which published a statement though the London Stock Exchange on 20 March confirming that it had signed a collaboration agreement with the SFF to 'evaluate' the South Sudan petroleum assets recently relinquished by the Malaysian multinational oil and gas company Petronas).
In a brief statement in August 2024, Petronas attributed its decision to bail out of South Sudan to long-term investment strategies 'amid the changing industry environment and accelerated energy transition'.
But Wildcat chairperson Mandhir Singh hailed the new deal with South Africa as 'excellent news for Wildcat in its endeavours to secure a deal in South Sudan.
'A tie-up with the SFF can only enhance Wildcat opportunities as the SFF is one of only a handful of companies that has successfully signed a petroleum deal in South Sudan since the country gained independence. They have a well-established technical team in Juba which can assist Wildcat in any technical work it needs to conduct.'
However, Mashapu said the Wildcat deal was subject to a non-disclosure agreement and 'as a result, we cannot disclosure [sic] anything for now.'
Regarding our request for a copy of the environmental and social impact report, Mashapu stated: 'The report is confidential and as it is yet not published by the Ministry of Petroleum (MOP), South Sudan, on their website, hence the content cannot be provided for any publication and use.
'The study and analysis of samples (for the first phase of the exploration project) is completed and results were presented and approved by our partner, Nilepet. The communication is being sent to MOP South Sudan to provide us a time slot suitable so the team can present and submit the report to MOP for public consultation and approval.'
(South Sudan's petroleum minister, Puot Kang Chol, was arrested two months ago, while Vice-President Riek Machar was also placed under house arrest after being accused of plotting rebellion against long-time political rival President Salva Kiir.)
No details are available on who conducted the impact assessment study or how much it cost, though the South African taxpayer-funded SFF advertised the contract in October 2023, stating that tender documents could be downloaded from the National Treasury's e-Tender publication portal.
The Secretariat of the Bonn-based Convention on Migratory Species (CMS) confirmed that it had been unable to obtain a copy of the environmental impact study, while the South Sudan Wildlife Service head, General Khamis Adieng Ding, did not respond to requests for comment.
'We are aware that the ESIA study was conducted in May-July 2024, but unfortunately we have not seen it because the report has not been made public,' said a spokesperson for the CMS Secretariat.
The CMS Secretariat has raised several concerns about the South African/South Sudan exploration project, which covers a massive 47,000km2 area known as Block B2, north of the capital, Juba.
According to the CMS Secretariat, the Block B2 oil extraction plan 'poses a pressing concern' because it covers living spaces critical for both the kob and tiang migrations.
'Without careful and informed planning, the oil exploration set to begin in 2025 could seriously disrupt wildlife migration, increase human encroachment, and escalate illegal hunting. The rising incidence of illegal tiang harvesting along roads already shows how essential it is to plan infrastructure with wildlife protection in mind.
'Approximately five million kob and 400,000 tiang, alongside other hooved mammals also known as 'ungulates', undertake complex, long-distance journeys to access essential wet and dry-season habitats annually,' said the CMS, citing newly released migration maps developed by the Global Initiative on Ungulate Migration.
Their routes take them between Badingilo and Boma National Parks in South Sudan. Some also migrate further north to Gambella National Park in Ethiopia, an important dry-season refuge, particularly for kob, from February to May.
In response to these concerns, the SANPC said: 'We, as a responsible operator, will take due care for any interference in migration of fauna and flora regarding its magnitude, timing, and preventative measures which are required to be taken to make minimum impact on their movement. The issue was well dealt [with] in the ESIA report, and mitigation plans are being proposed, which will be adhered to while operating in the area.'
According to a Unesco World Heritage Site nomination fact sheet, the Sudd has a very high carrying capacity for wild herbivores that depends on unconstrained foraging movement across an intact and functioning landscape.
As a result, the Sudd and adjoining wetlands and grasslands are still able to support two of the largest ungulate migrations in the world, covering an area seven times larger than Serengeti National Park.
But if South Africa strikes oil, that picture is almost certain to change. DM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
5 hours ago
- IOL News
Unfazed: South Africa's stance on US visa policies impacting Zimbabwe
US President Donald Trump continues to disrupt global diplomacy after a recent visa ban imposed on Zimbabwe. Image: Picture: Evan Vucci/AP The South African government seems unaffected by the recent US visa ban imposed by the embassy in Harare, Zimbabwe, despite President Donald Trump's ongoing disruptions to global diplomacy through tariff increases and immigration policies. The US has suspended all routine immigrant and non-immigrant visa services to Zimbabwe due to concerns over misuse and overstays, although other visa types remain unaffected. Although South Africa was exempt from new Trump visa restrictions on SADC countries, a new policy has been implemented for Malawi and Zambia. Citizens of these nations are now required to pay a bond of $5 000 (R88 656) to $15 000 (R265 967) to travel to the US. Additionally, the citizens are required to use one of three airports—Boston's Logan International, New York's JFK International, or Dulles International near Washington D.C.—for both arrival and departure. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ When asked whether South African citizens should be worried, Department of International Relations and Cooperation (Dirco) spokesperson Chrispin Phiri gave a brief response: "We do not provide commentary on other countries' visa regimes, and this is our general position, it's not specific to the US." A senior government official, however, downplayed the likelihood of South Africans being affected by the US visa restrictions. "Remember Trump is only in our case because of the International Court of Justice case against Israel and our involvement in BRICS. Nothing more and nothing less," the official said. "South Africans visiting the US are mostly professionals who either go for business or a holiday. We seldom have citizens wanting to immigrate to the should have nothing to worry about,' he said. The US embassy explained that the reasons for the restrictions was because the administration was working to prevent visa overstay and misuse as part of national security. "The Trump administration is protecting our nation and citizens by upholding the highest standards of national security and public safety through our visa process," the embassy said. "We are always working to prevent visa overstay and misuse." In June, the US imposed travel bans on citizens from 12 countries, with seven of them located in Africa. Additionally, heightened restrictions were applied to seven other nations, three of which are African. The US has issued a demand to 36 countries, predominantly in Africa, to enhance their traveler vetting procedures. Failure to comply could result in a ban on their citizens visiting the US. International Relations analyst Rejoice Ngwenya said it was unfortunate that the US had an obsession with immigration issues. "All democratic countries must encourage international country movements. However it is incumbent upon citizens that they don't abuse regulations. But one thing to acknowledge in terms of implementation of immigration laws globally is not to interfere and dissuade inter country movements of students because knowledge sharing and education is a universal right,' Ngwenya said.
Daily Maverick
5 hours ago
- Daily Maverick
SA's vital marine manufacturing industry faces existential threat from new US tariffs
Almost $10-billion worth of South African goods exported annually to the United States are now subject to a 30% 'reciprocal' tariff. This move not only threatens production and job losses in local manufacturing and agriculture, but also affects the maritime sector as the provider of transport and logistics that moves these locally produced goods and raw materials to export markets. The overall impact will reshape South Africa's maritime trade flows as the country's goods become less competitive in the US, especially compared with suppliers in countries with lower tariffs. The new tariffs mainly target manufactured goods, including vehicles and components, machinery and equipment, and leisure craft, which have higher value added, while key mining commodities are exempt — effectively derailing South Africa's export-focused industrial growth path. This extends to the marine manufacturing sector, as South Africa's boat and yacht builders that export almost a third of their production to the US — their most important market that was previously duty free under the African Growth and Opportunity Act (Agoa) — are now also subject to the 30% tariff. Jobs and future investment at risk This has an immediate impact on the competitiveness of the South African marine manufacturing sector, putting jobs and future investment at risk in a growing, highly export-oriented sector that is considered one of the keys to unlocking SA's maritime economic potential. A near-collapse of South African vehicle exports to the US since the tariff hikes were first announced in April, with an 87% drop over three months, compared with Q2: 2024, is among the first signals of the impact on manufacturing production and exports. Reduced exports mean lower shipping volumes from South African ports to the US, affecting the capacity utilisation and revenues of the container and vehicle shipping lines that serve these routes. The only shipping line currently providing direct sailings from SA ports to the US east coast (Mediterranean Shipping Company, MSC) told Freight News that it would be maintaining its dedicated SA-US service of four vessels currently in weekly rotation, despite the potential impact of the tariffs on trade volumes. Logic, however, suggests that the number of vessels and/or frequency of sailings of any shipping line on a particular route are likely to be reduced if these are not sailing at capacity as the service becomes less profitable. Logistics bottlenecks and congestion at South African ports, a situation now slowly improving, have resulted in several shipping lines reducing their local ports of call in recent years, or excluding SA's ports altogether. Reduced export volumes as a result of the US tariffs may make South Africa an even less attractive destination to service, further reducing access to shipping capacity, and thus limiting the ability of SA manufacturers and other producers to secure new export business. For exporters, the challenge is not only producing the right goods at the right price, but also delivering them on time at a landed price not excessively inflated by import duties. While the impact of the US tariffs must accelerate efforts to seek new export markets, securing new business and complying with myriad associated regulations is not an overnight process; particularly in a global trading environment that now encourages isolationism and protectionism following the lead of the US. When those new markets are secured, the capacity to ship to them needs to be in place — in other words, we cannot afford to lose the confidence of the global shipping industry nor the capacity of our ports to handle cargo. Declining exports would lead to reduced throughput at South African ports and reduced capacity utilisation, which affects their global rankings and ability to attract shipping lines and generate revenue through port dues. Ports need to be busy, moving volumes at scale, which facilitates imports and competitiveness, enabling cost-effective exports and access for South African producers to global markets. Increased tariffs and trade barriers cause delays, cancellations and disruptions in maritime shipments, leading to higher insurance claims and logistical challenges for cargo insurers and shipping companies. All of these challenges in reduced volumes of trade and reduced export capacity would in turn affect employment in our ports, in the maritime logistics and transport value chain, and in the surrounding network of suppliers and service providers to the maritime sector. Marine manufacturing The SA boat-building industry, primarily focused on leisure craft, has shown impressive growth of over 20% annually in the years following Covid-19. South Africa is the world's second largest producer of catamarans, after France, with more than 90% of our leisure craft exported — and 29% of production exported to the US, which is SA's largest market valued at approximately R1.6-billion in 2024. These exports to the US were duty free under Agoa, which has now been nullified by the imposition of the 30% reciprocal tariff, placing a R3-billion industry that supports up to 10,000 jobs, under existential threat. The sector is characterised by high input and operating costs. Given that aluminium and steel are critical components and inputs in the construction of boats and superyachts, the imposition of the additional 50% tariff on these materials will further harm the sector's competitiveness in the US market. High-value exports stifled The US tariffs are reshaping South Africa's economy and maritime trade by stifling high-value exports, increasing costs for importers and redirecting cargo flows towards exempted raw materials — negating the drive for local beneficiation of raw materials to shift the proportion of exports to higher value finished goods. The US is South Africa's third-largest overall trading partner, after the European Union and China. However, the EU and the US are arguably more important markets than China, as they are destinations for diversified, high value-added manufactured goods, supporting local employment, while exports to China and other BRICS countries are largely low margin, unbeneficiated raw materials and a small basket of agricultural products. Strategies to support local manufacturing and pursue alternative markets, including boosting intra-Africa trade through the African Continental Free Trade Area (AfCFTA) and leveraging BRICS membership to unlock higher value trade, must incorporate measures to incentivise the local processing of minerals and other resources. While the government continues negotiations with the US towards a mutually beneficial trade deal, the announcement earlier this week by the ministers of Trade, Industry and Competition, and International Relations and Cooperation, of an Economic Response Package to assist businesses affected by the tariffs is most welcome. We trust that the Department of Trade, Industry and Competition's newly formed Export Support Desk will support not only businesses in manufacturing in finding and accessing new markets, but also those in maritime transport and logistics sectors adapting to altered volumes and trade flows. Businesses seeking to enter new markets will also need support in ensuring that shipping routes and capacity are available to service new destinations, and meeting logistics and policy requirements of those new markets. DM
Daily Maverick
5 hours ago
- Daily Maverick
Key conversations at Naacam 2025 to address tariff pressures and growth
As Nelson Mandela Bay's automotive sector reels from ongoing challenges and a shrinking market, the 2025 Naacam Show provides a crucial opportunity for industry leaders to come together and explore ways to support growth and sustainability. With US tariffs adding fresh pressure, manufacturers of vehicles and automotive components in Nelson Mandela Bay face an uphill battle to stay competitive in an increasingly shrinking market. However, over the next two days, automotive roleplayers will have the opportunity to connect and network on ways to improve their businesses at the 2025 edition of the National Association of Automotive Component and Allied Manufacturers (Naacam) Show and Conference, which takes place at the Boardwalk Hotel International Convention Centre in Gqeberha. About 150 exhibitors will showcase their products and services, while a host of speakers will lead discussions related to the South African automotive industry on a local and global scale. Speaking at the media launch of the event on Tuesday, Naacam CEO Renai Moothilal said South Africa's automotive component manufacturers provided 80,000 direct jobs and about twice as many indirect jobs through suppliers and other auxiliary businesses. He said there was growing concern over the 'fluid global trade environment', referring to the 30% US tariffs and their impact on this sector. In 2024, the export value of South Africa's automotive industry, including vehicles and components, totalled R270-billion, of which just over 10% — R28.7-billion — went to the US. Breaking that figure down further, Moothilal said R4.4-billion worth of components were exported to the US. 'We live in interesting times, and this sector has faced distinct challenges in the recent past. We have observed a decline in the domestic market for vehicles assembled in South Africa, as well as increased import penetration in both vehicles and components. This led to reduced production from original equipment manufacturers (OEMs).' The panel pointed to two stark examples of mounting pressure on the sector — the withdrawal of Goodyear South Africa and the pending closure of its Kariega plant, and the announcement by Jendamark Automation that US tariffs could cost it R750-million in contracts. In addition to the blow delivered to Nelson Mandela Bay in June when the Goodyear announcement was made, a week ago, ROVD Engineering, also based in the metro, said it had lost hundreds of millions of rands in contracts because of the US tariffs. The company, which has operated in Gqeberha for 61 years, designing, manufacturing and exporting turnkey industrial automation systems to US customers, said it was looking at moving offshore to continue manufacturing. Political instability But global pressures aren't the only threat. Locally, Nelson Mandela Bay's political instability and crumbling infrastructure are disrupting the supply chains that manufacturers depend on. Pointing this out, the CEO of the Automotive Industry Development Centre in the Eastern Cape, Thabo Shenxane, said the political climate and service delivery in Nelson Mandela Bay were ongoing challenges. He said crumbling infrastructure had caused countless disruptions throughout the value chain as it led to unreliable energy, water outages and logistical issues as a result of poor roads and inoperable railway lines. He also referred to the well-documented political instability that has long plagued the metro. 'It's not just a Naacam member problem or a government problem. It is a societal problem, and we must look for opportunities to improve our business,' said Shenxane. He believes the Naacam show provides a unique opportunity for stakeholders in the automotive industry to engage constructively and develop solutions that will assist each other and add to the growth of the entire sector. Automotive Industry Transformation Fund (AITF) CEO Jabulani Selumane agreed with Shenxane, saying the show could prove to be a 'catalyst' for SME growth within the automotive sector. He said that since the AITF was founded in 2021, it had contributed to the establishment of 70 small businesses within the sector, creating 2,700 jobs in the process. 'SMEs are not just junior partners. They are the growth engine, and they bring agility, innovation and the capacity to localise component manufacturing to build resilience in our supply chain.' He said SMEs could not operate in isolation but required support, resources, skills and market access that larger corporations provided, which made the Nacaam Show a valuable platform for growth and development. DM
