A UAP Insurance South Sudan’s is angling for a
piece of the lucrative oil and power industry ahead of the first ever global
conference on energy and infrastructure to be held on 11TH -12TH October
The conference brings together industry experts, government officials from
the Transitional Government of National Unity and leaders from the private
sector will gather in Juba to tackle energy and infrastructure challenges
and showcase opportunities.
Among the key discussion points will be assessing the technology and
infrastructure needs for development of the upstream, midstream and
downstream sectors, as well as how to finance, build, implement and
operate new projects, taking on security challenges and overcoming
insecurity on the oilfields and the need for regional energy integration in
downstream infrastructure, including refineries and export routes
It has been commissioned and endorsed by the Ministry of Petroleum of
South Sudan and will feature keynote inaugural speeches from H.E. Gen.
Salva Kiir, President of South Sudan and H.E. Amb. Ezekiel Lol Gatkuoth,
Minister of Petroleum and a plenary session moderated by the UAP Old
Mutual Group Managing Director, General Insurance James Wambugu.
UAP has provided general insurance risks for Dar Petroleum Operating
Company (DPOC), Greater Pioneer Operating Company (GPOC) and
Sudd Petroleum Operating Company (SPOC).
“Based on the outcomes of the conference, UAP will be keen on
capitalizing on the potential insurable interest for the infrastructure both
upstream and downstream as well as the economic activity generated
from the multiplier effect of these investments”, said UAP South Sudan
Managing Director Kris Mbaya.
“Further, we also look forward to insuring existing (national) infrastructure
like the refinery, the pipeline and the operating wells that have already
been sunk and participating in structured financing instruments for the
necessary State infrastructure such as roads, bridges, pipelines &
communication systems”, Specific to existing businesses and infrastructure,
UAP conducts risk surveys and assessments to advice on the risk to be
insured and ways to mitigate on these risks” added Kris.
“For new investors in the country, we are able to leverage the collective
insight enabled by our wide network of strategic partners in order to advice
on investment processes, regulations and licensing in addition to providing
a seamless insurance portfolio”, he said.
Already, UAP has had successful joint ventures in South Sudan including an
iconic commercial property, UAP Equatoria Tower, a joint venture between
UAP and the Central Equatoria Development & Investment Authority.
“Possible options of partnership can be explored through our Investment
arm of the business, if aligned to our business strategies. Another option lies
in bringing together our investors to pool funds for investment into
public/private partnership projects that would be anchored on
concessions” Kris noted.
According him, the ongoing conflict in some parts of South Sudan has
made it difficult for reinsurance partners to support political and terrorism
covers due to the high probability of the risk occurring.
“From an insurance perspective, the country has been in conflict for the
last three years making it a great challenge for insurers to develop covers
that have acceptable risk profiles” he adds.
He said that UAP will also be seeking to provide covers for business
interruption to the players in the oil and gas sector.
Currently, 95 per cent of the South Sudan budget is financed by oil revenues
which has resulted in near a total collapse of the financial system with
corporates lacking access to hard currency and in this way impacting the
efficacy towards meeting business obligations.
“We encourage other investors to come to South Sudan because the
business community needs a strong ecosystem to support the players. We
serve in the service industry and without the support of other aspects of the
economy, this impacts us directly”.
Despite the conflict, UAP’s rates South Sudan’s outlook as positive and
promising based on the current state of the economy as well as the
government efforts in securing peace. “We are prepared to realize gains
of a peaceful environment”, the managing director said.
UAP Insurance has been in operation for 10 years in South Sudan. It is part
of the UAP Old Mutual group in East Africa and part of the wider Old Mutual
Plc Group which is a leading insurance and investment player with
involvement in all segments of the energy business, including working with
the three operating consortia.
UAP Insurance South Sudan completed the construction of its UAP
Equatoria Tower in 2017; a Grade ‘A’ office complex that is also Juba’s
Focusing on dynamic workshops, presentations, panels and keynotes, the
event will create an environment for networking and deal-making among
South Sudan’s energy leaders.