South Sudan to Sign Contracts with More Oil Companies

JUBA – Following a number of months of discussion with Foreign Oil Companies, the Government of South Sudan had signed Oil contracts with five Oil Companies representing different countries’ investors from China, Malaysia and others.

The Secretary General of Sudan People’s Liberation Movement (SPLM) Pagan Amum Okiech in a press conference at the Party’s Headquarters in Juba yesterday said the signing of the contracts with the companies is a part of a larger strategy to develop a world-class petroleum industry for the benefit of South Sudan citizens and international partners.

He said the contracts further represent a new way forward for South Sudan’s oil industry and a new path where the foreign oil companies have a deepening relationship with the country and its people.

The Foreign Oil Companies which signed the contracts included Petroliam National Berhad (PETRONAS), Oil and Neutral Gas Corporation Limited (ONGC), China Petroleum and Chemical Corporation (SINOPEC), Triocean energy and Nile Petroleum (NILEPET) a locally owned company.

Amum said the Government of Sudan’s past control over South Sudan resources formally and “legally” ended with the signing of the contracts, “hence the Government of South Sudan becomes a sole authority over Oil companies” he said in a well attended press conference.

The SG said the signing of the new contracts with the Foreign Oil Companies signaled a new Chapter in the development and exploration of Oil within South Sudan.

He further said to avoid corruption, the financial management of oil revenue had been divided into three parts which include:  1-Future generations’ funds, which will be kept in a separate account and meant for the future up-coming generations, 2-Oil Stabilization funds that will be used to counter the negative effects of oil production, 3-Government funds or budget, which is meant for development, government administrative issues etc.

Chinese Companies are among the best oil companies which signed the contracts with South Sudan.

When asked about the political complications of South Sudan from point of view of the country wanting to be more close to West and at the same time to the East part of the World, Amum replied that South Sudan wants to be a friend to all the countries in the World and if China came first no need to wait for America and if the US will come tomorrow they will still invest in oil dealings since they were invited before by South Sudan.

“SPLM and South Sudan is not turning East or West we are going to all directions of the World. We invited the Americans and we invited Chinese to invest in our country and when China asked us to come to South Sudan we welcomed it because we cannot wait for those who have not yet come and if they come they are welcome to invest,” Amum explained to remove what some observers have seen as political complications of oil investment between China and United States of America.

He said the Government of South Sudan was looking forward to concluding new contracts with remaining oil companies in the territory of South Sudan in blocks that are yet producing crude oil.