US oil companies will soon be allowed to work in South Sudan: official
September 17, 2011 (KHARTOUM) – The newly established state of South Sudan may soon see American oil companies operating there, a US official disclosed on Friday.
Sudanese officials have lobbied Washington intensively to lift sanctions and also remove the country from list of states that sponsor terrorism. But so far only limited relief was granted to the East African nation.
Following the emergence of South Sudan as the world’s newest nation, the US indicated that it will be exempt from the sanctions imposed on its northern neighbour.
The Office of Foreign Assets Control (OFAC), which is the US agency that is responsible for issuing regulations related to implementation of sanctions, is expected to announce rules by which American companies can work in South Sudan.
“I’m sure we’re going to open that door, but the rules of the game are still being worked out and that is very frustrating to the South because they want American oil companies there,” US special envoy to Sudan Princeton Lyman told a trade briefing in Washington according to Reuters.
“There is a task force working on it and they will, God willing, have something soon” he added.
Lyman said the Treasury Department would define new criteria for licensing oil deals that would provide only “incidental” benefits to the North, making some deals with South Sudan possible.
The fact that the landlocked South has to use the North’s infrastructure to export its oil may have made slowed down OFAC’s rule-making process.
Sanctions drove out Chevron Corp, Marathon Oil Corp and other Western companies, but industry sources say many are keeping their options open about reviving investments in the oil-rich African country. China National Petroleum Corp, Malaysia’s Petronas and India’s Oil and Natural Gas Corp are among the oil firms now operating in South Sudan.
But Lyman said that totally lifting sanctions could not be done quickly as it requires congressional approval.
North Sudan lost 75 percent of the country’s oil production of 500,000 barrels per day after South Sudan gained independence. The impact of the loss is being felt in the country through chronic shortage in hard currency and tightened government spending.
Sudan has been hoping that transit fees for oil produced in South Sudan could provide a reliable source of revenue.
But the two sides have failed to agree on the figure to be assessed for using the pipelines in the North.
It has been reported that Sudan asked for $32 per barrel for the service, something which South Sudan vehemently rejected.
Despite the disagreement, Sudan has continued to allow the South to export its oil through Port Sudan which some attribute to fear of angering China which buys most of the country’s oil.
Lyman said US companies could provide valuable know-how and improved technologies to South Sudan’s oil sector to extend the life of wells that some experts say risk sharp production declines within the next five years.
But he warned that US interest in South Sudan’s oil opportunities was tempered by serious concerns over corruption and transparency, saying the new leaders in Juba had yet to act on pledges to put monitoring institutions in place.
“If they don’t meet that challenge, its going to be a big problem for everybody,” Lyman said.
(ST)
Kolong oo!
US oil companies will soon be allowed to work in South Sudan: official
I’ll be happy when seeing pipe lines are shifted from port sudan to other ports by new USA oil companies.let us develop our know how now.that step is welcom.
Bush
US oil companies will soon be allowed to work in South Sudan: official
The Americans are most welcome to explore the oil fields in South Sudan, the Arabs (terrorist mined)in the North had been stealing it day and night for decades for the development of the northern states.
borian-out
US oil companies will soon be allowed to work in South Sudan: official
that is Fabulous news which often comes along with creation of a better job opportunities for locals.may God bless RSS.
countryman
nhomachotdeng
US oil companies will soon be allowed to work in South Sudan: official
American companies are highly welcome to work in oil field than Chines who are heartly Arabs finaly our Minister of patoleum should go to the notherners looking for qualified in oil field because we need to build the capacity of our people than bring arabs for next generation problem.
Nhomachot
panda
US oil companies will soon be allowed to work in South Sudan: official
south sudan people you to have be very careful with american people but they are super power,their interest always oil look what happened in libya the richer country in africa south sudan is also one of the richer country in africa too.will you see
SSLA supporter
US oil companies will soon be allowed to work in South Sudan: official
Honestly speaking, it is very disturbing and even disgraceful to some extend seeing some myopic southern Sudanese behaving submissively as if they are USA and Israeli proxies in the African soil.
What is the point of being independ if you people are still behaving like USA slaves in Africa?
Do some of us really know the motive of USA companies to do business with us in RoSS at this very moment of time when many internal and external issues alike facing our new nation are not dealt with yet!!
Everyone was aware of the intentions of USA when they desperately wanted to divide Sudan into two weak countries!!to exploit the ignorance of southern Sudanese and carry out a one-sided business with RoSS!!
Shame on USA who sucked the blood of Latin Americans, black slaves and indigenous Red Indians to reach where they are right now!!
With all that in mind, I bid you that US companies will never ever be fair, cheaper and more honest than the Chinese and Malaysian companies!! wait and see!!
SSLA supporter
US oil companies will soon be allowed to work in South Sudan: official
I meant to say what is the point of being independent!!
kimo
US oil companies will soon be allowed to work in South Sudan: official
good news,the new state is becoming rich then
borian-out
US oil companies will soon be allowed to work in South Sudan: official
SSLR
I think you’re in a need for serious help or may be a psychiatrist, no one is behaving or would like to be an American, we’re all supportive of American’s companies due quality of service that they offer. The point is that the people and the government of SSR are seeking for what best interest of their nation.
Garang
US oil companies will soon be allowed to work in South Sudan: official
You are welcome to invest in the new nation Uncle Sam.Expensive quality services are far much better than cheap short live ones.
borian-out
US oil companies will soon be allowed to work in South Sudan: official
SSLA
independent from having someone( those fake arabs) making decisions on our behalf about our God given resources, that’s very unacceptable in todays world.
Jay
US oil companies will soon be allowed to work in South Sudan: official
SSLA supporter, your name and what you’re saying is irrelevant to Southerners.
You seems not to know that South Sudan is now a different country, and they have the choice to choose whoever they want to do business with.
Do you think you’re fooling anybody with your alias?
You’re making yourself highly irrational in the media, just collect your emotion and go cry somewhere else.
SSLA supporter
US oil companies will soon be allowed to work in South Sudan: official
With my due respect to you (even though you don’t it) I would like to point it out that is you that need a psychiatric help given the signs and symptoms of dementia that are causing you to misspell RSS as SSR and my liaison name SSLA as SSLR so, what do you mean by those nonsense abbreviations!
What sense it makes to look for high quality service when you don’t even have the basic!! Honestly, what do we have right now in southern Sudan?? Based on the statistic, about 95% of our people in both rural and urban areas are still drinking untreated water directly from the river, are still surviving with less than a dollar a day, are still living in their mudy huts just like when this planet earth created itself more than 10 billion years ago, are still travelling on foot for hundreds of miles while carrying heavy loads on their heads, majority of our people including those who live in the so-called cities in RSS are still defecating and urinating (excuse my language) in any open space available to their reach, be it open air between houses, fields, in the forest or even on the roads or streets sides!!
About 99% of our kids and elderly are still dying from curable or even preventable diseases, the illiteracy in RoSS is as high as 70%, so, with ball this in mind, what should be your priority, expensive American service or reasonable service provided by Chinese and so on ?? No wonder why people of your type are importing fancy cars and furniture from Dubai while our masses are going without food!! Shame on you Pathetic and hypercritic people!!
Michael Angelo
US oil companies will soon be allowed to work in South Sudan: official
United States of America oil companies are highly welcome to operate in Southern Sudan. As a new nation, South Sudan should allow foriegn companies to operate in South Sudan.
Gogrialboys
US oil companies will soon be allowed to work in South Sudan: official
Southsudanese, America has been with us directly and indirectly helping us achieved our independent, although some of you might have not seen it. Americans shoud not be ignored, if they want to partner with us given the challenges we are facing now. It is true that we should be mindful of how we do business with all the oil companies, so that our resources should not get depleted within short time and our environment protected.
For me, I would be happy to see American companies contributing to our development, and it is something they are good at. They have already shown their commitment in helping us developed our new nation. If those Chinese companies or Asians were Americans, you could have seen some sort of development in those oil states regarding hospitals, schools and roads. Americans are the people who knows how services are delivered to people and I hope, if they are contracted to work in our oilfield, I think they will be better than those Chinese companies whose their interest lie in the North. Again, I’m not saying they should be freely allowed without restricted regulations, but we are indeed, in need of them. They can trained our young people of technical know how, and I hope we have alot to gain than what they can take away from us.
Invincible411
US oil companies will soon be allowed to work in South Sudan: official
Well, dimo or what ever yo name is; Actually just to remind u this is rich country since it’s creation….unless, our government commits it self to protect these riches which soon the US make take advantage.
Junub
US oil companies will soon be allowed to work in South Sudan: official
Great news because the new state will receives, a new missile from
U.S.A us the America self them to Saudi Arab to prevent Iran
From harming middle east. RSS welcome America to join oil
Companies soon.
ANTI_GOVERNMENT
US oil companies will soon be allowed to work in South Sudan: official
that is correct your execellency it is wise discesion to welcome US COPANIES TO OPerate in the south sudan then this china who are intersting in what arab is telling them, we need poepl who can train us then poepl who like milking our oil and refuse to train us