South Sudan plans to review oil contracts after independence
July 5, 2011 (JUBA) – The government of the oil-producing region of South Sudan on Tuesday July 5 said it will review all the contracts it said were signed by the Khartoum-based government with international companies specialising in oil exploration before the signing of the 2005 Comprehensive Peace Agreement.
The 2005 CPA mandates that the two regions split revenues from oil produced in the South 50-50 for the duration of the deal’s interim period (July 9, 2005 – July 9, 2011).
The soon to expire deal officially recognised contracts which the Khartoum government signed with international companies, to explore the oil prior to the CPA, which ended the over a decade long North-South conflict.
Sudan will loose around three quarters of the country’s known oil, when the South secedes. Senior South Sudan officials on Tuesday said the government would review all existing contracts in order to fit policies of the new nation on the management of the oil revenues.
“The policy of the government of South Sudan is every clear. We will not terminate any contract if there are no contractual concerns, but we will have to review them in order to see possibilities of working together with the companies under new policy, because these contracts were signed when Sudan was one country”, said Garang Diing Akuong, minister of energy and mining in the government of South Sudan in an interview with Sudan Tribune on Tuesday.
The minister’s statement confirmed a statement made by the minister of investment in the government of South Sudan in which he was quoted by the CNN as saying the government of the new nation would review oil contracts with international companies.
“Yes, comrade Oyai was right. The government of South Sudan as I have said earlier would review all the contracts because some contractors under these current contractual arrangements by the government of Khartoum are given large areas. Others are given small portions. This has been an issue of concern. So for these reasons we shall review all contracts,” explained minister Akuong.
On Sunday CNN quoted investment minister General Oyai Deng Ajak as saying: “We will review the contracts that have been signed, look at them critically, make sure that we remain happy.”
The US broadcaster also quoted Ajak as stressing that French company Total is not developing an enormous oil field it has held since the 1970s despite recent entreaties from South Sudan to do so.
”After the war we asked them to come in. They have not yet come in,” he said, suggesting that the newly independent country would break up the block Total holds and auction parts off to other companies.
“The block that was given to them is the whole of Jonglei state, the largest state here,” he said. “We are going to look at it. We are going to divide the block into two or three or four … there is no reason why we can allow one company to monopolize our resources.”
The French company interrupted, in 1983, its search in the Bor Basin Block B acreage, in Jonglei state, because of the outbreak of the rebellion.
After the signing of 2005 peace agreement, Total, which set foot in Sudan in 1980, had a legal row with UK White Nile Ltd (WNL.LN) as the later claimed rights on a large part of the block in deal signed with South Sudan government. But the Sudanese government confirmed the French firm in 2008.
Since then the operating company has announced several times its readiness to resume activities but it has to finalize the financial partnership of the block B consortium after the withdrawal of the American Marathon.
The company also said it has been hindered by the sharp rise in violence in Jonglei which witnessed tribal clashes during the post peace period.
(ST)
Lokorai
South Sudan plans to review oil contracts after independence
Thump up to Sudantribune for posting this poster!
Thanks my daughter for knowing your rights by holding your future (flag); we fought for you and time to celebrate!
Long live South Sudan Oh God!
Lokorai
Bush
South Sudan plans to review oil contracts after independence
We must tear up all the agreements sign by the NCP with Chinese Government about the oil and let China come and kneel in front of us to negotiate a new deal.
Thomas Andrew Hissen
South Sudan plans to review oil contracts after independence
BREAK NEWS,
Lets the government of south sudan grand the oil company to America I hope this country will dvelop very soon, not Chine,
JAMUS
South Sudan plans to review oil contracts after independence
Dear readers,
There is no point in keeping total as our partner in exploiting our resources. They should be asked to pack and go because during the long war, they had been acting as intelligence agent for Sudan Armed Forces in the South. They intercepted our communication using their SIGNAL INTELLIGENCE (SIGINT) and pass them to SAF to act on these intelligence, these led to many of our battle plans being thwarted and foiled by our enemy. Hence, it led to loss of materials and human lives on the side of the SPLA.
They used their plans to fly over SPLA Frontlines and they will take images of our hard ware’s and military capability and passed the intelligence info to SAF, who act on them. This sort of intelligence is called IMINT, derived from image intelligence. By acting this way, they virtually gave SAF an advantage edge on the battle ground and making SPLA performed abysmally.
Besides, they sent some of their guys to go to SPLA liberated areas as relief workers and on the contrary, they were Human intelligence agent (HUMINT).They complied their reports about SPLA’s recruitment, strengths and operational plans and hands these to SAF, who will counter-act by bombing these sites to neutralise our strength. Therefore, there is no logic in keeping total in our midst because, they never cared about the welfare of our civilians and men in uniforms during our suffering.
Jamus
Chol de Kwot
South Sudan plans to review oil contracts after independence
It is critical to review oil contracts to put in place environment protection clause to ensure oil companies and GOSS are made environmentally accountable in all their operations in South Sudan oil industry. It is also important to review those contracts to ensure people whose land is taken up for oil drilling are adequately compensated and not just evicted from their land as witnessed in oil field areas before CPA was signed.
Bigcat
South Sudan plans to review oil contracts after independence
Dear SSR
Worning!
I worn the south sudan republic,to be carefully and be caution to review oil contracts after it idependent.Please GOSS must give the most oil contract to American contractor.american alway get shame and also repect human right but china never get shame after they steal money.
Consiquence
if american (US) miss to own south sudan oil contract,then there will be high chance of civil war in south sudan cited by CIA.
let’s thinks twic of who kill Dr.John Garang sudan 1st vice president (SPLA/M)Leader.? there is conflicted isues about that incident! some say may (US)america CIA killed John Garang! and some say maybe Arab world killed and final some falsely say it was an acident!
message to GOSS, the reality of who killed john garang was with uganda under INFLUENCY of america CIA.because Dr.john Garang refused to give oil contract to american and mentioned some countries like Norway and france plus china.
If Kiir or RSS miss to choose american oil contract.then there are high chance of an other south president death!!!
Matata
South Sudan plans to review oil contracts after independence
I think southerners need to be careful. Thinks are not easy as spoken. There may be blunders which will cause the whole life of the nation. We must learn from Botswana and have sober minds when it comes to issues of national interests.
The following questions needs to be answered:
– Who sponsored the peace deal?
– Why did he or she sponsored it?
– What is the priority of southern Sudan?
– Who are the partners etcs.
South Sudan should learn from the mistakes of other African countries.
Matata!
kuac Agol
South Sudan plans to review oil contracts after independence
Dear All.
We could not hinnder those who were acting as Northern Agents during the war, because they came to south sudan to make friendship with us,so be happy they can on the other hand bring necessary informations to us too and could help to develope and explore our resources sincerely.
Take for example China was working in the North and could be able to work in south too if you can look at the independent timetable you can find the head of delegation for China ,that is already a tie with government.
If you continoue doing that they can sell you to the government and be arrested for some days.
Abyei Soil
South Sudan plans to review oil contracts after independence
I finally agree with Bigcat, if this new country dont put the history into consideration then southern stability is in danger because US by seeing its interests in the south going away with another tycoon it will try its all corners to bring down the country under instability. They are capitalist capable of sponsoring any sort to topple what they want eliminate.
GoSS must try to avoid this warning scenario by considering West policies to the oil producing region of South Sudan.
Abyei.
Ito
South Sudan plans to review oil contracts after independence
Dear Readers,
Yes, all of the oil contracts–previous and past have to be properly and critically probe for future decision making proposes. Some of these companies are fake and those found to be so should be stripped off their license. We need to review and to seriously see which companies can truly do the job on time and effectively and with proper efficiency.
The prices of oil that use to be below the prices set by OPEC should be change to reflect international standard and companies that are resistance to the policies and procedures set by the national parliament should be ask to leave the country.
Thanks