Global Witness urges transparency in S. Sudan’s oil sector

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April 8, 2013 (JUBA) – As oil production resumes in South Sudan, the
campaign group, Global Witness, urges government to implement
transparency measures in the sector, as part of the oil legislation
passed last year.


A South Sudanese soldier walks past a crude oil reservoir tank at a
field processing facility in Unity State on November 10, 2010. (Getty)
“South Sudan’s oil legislation includes clear requirements for the
publication of oil sector data and contracts which, if implemented,
would enable citizens to monitor and verify the management of their
natural resources,” said Dana Wilkins, Global Witness campaigner.

Such measures, she stressed, should also include clarification from
South Sudan government on recent reports of “secretive” contract
allocations.

This week’s resumption of oil operations will test whether the
government’s commitment to transparency is genuine, Dana added.

Stephen Dhieu Dau, South Sudan’s Petroleum and Mining minister told
journalists on Monday that the new nation has started producing 10,000
barrels per day of oil from Unity state’s Tarjas oil field.

“We resumed normal production in Tarjas oil fields, with up to 10,000
barrels being produced per day,” Dau said.

The minister, while briefing journalists at Juba airport, also said he
expects oil production to resume within its Upper Nile oil fields by
end of April.

South Sudan shut down its oil production in January last year,
following a dispute over transit fees with neighbouring Sudan. Until
now, the young nation’s only route to export its crude oil is
currently via Sudan’s pipelines and port.

The two countries had spent more than a year and a half negotiating
new transit terms when Sudan began confiscating crude oil shipments at
the port in late 2011.

Oil revenues accounted for more than 98% of the South Sudan’s national budget.

The resumption of oil production, if managed well, could provide
desperately needed development and basic services for South Sudanese
citizens, the Global Witness campaigner, said.

“The oil legislation specifically includes the transparency and
accountability mechanisms necessary to help make that happen. Now is
the time for the government to demonstrate its commitment to openness
and public scrutiny,” she added.

The resumption of the oil production will be the first event in the
implementation of the economic deal of the cooperation agreement
signed in Addis Ababa, Ethiopia between the two regions in September
last year.

However, despite a six-year peace deal and almost 20 months passing
since the new nation gained independence, South Sudan and its northern
neighbour are yet to agree on the status of disputed areas, with large
areas of the oil-rich border remaining un-demarcated.

(ST)

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