South Sudan receives $700 mln in 2005 oil money – official
Mar 15, 2006 (NAIROBI) — Southern Sudan received more than $700 million in oil revenues last year as part of a deal to end more than two decades of civil war in Africa’s largest country, an official said on Wednesday.
The southern administration, led by former rebels, had previously accused the north of failing to hand over its half of the oil money. But John Luk Jok, the south’s minister for youth, culture and sports, said his region was now receiving its share.
“People were not sure whether we were getting the right share we should get but there was a meeting. And they came out with a statement that the south has received the monies it should have received,” Jok told Reuters.
He was speaking on the sidelines of an investment conference for southern Sudan in neighbouring Kenya.
“The figure put was $702 million…50-50 share,” he added.
The vast south, devastated by what was Africa’s longest-running civil war, desperately needs money to rebuild a region lacking schools, hospitals, roads and water.
Aid workers warn that the anticipated return of up to four million southerners who fled the fighting will strain already flimsy facilities in towns and villages.
“About $100 million has been earmarked for roads, water, electricity in Juba for instance and other sectors,” Jok said, referring to the southern capital.
A copy of the 2006 budget for southern Sudan, seen by Reuters, shows that the southern government expects to receive a significantly increased $1.3 billion in oil money this year.
Sudan’s two main oilfields are in the south, but the refinery and oil pipelines are in the north.
Up to 500,000 barrels of crude oil are produced every day in Sudan, where Chinese, Malaysian and Indian companies are the big investors. Sudan expects to increase output by 150,000 barrels per day this year.
Industry experts estimate there are at least hundreds of millions of barrels of recoverable reserves in the south.
(Reuters)