This article was last updated on May 21, 2022
Canada: 
Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
”Amid reports of endemic corruption, escalating security concerns, and delays restarting crude oil production, South Sudan’s new oil laws offer grounds to be optimistic about the prospects for development and stability,” said Global Witness in a statement yesterday.
It has released a report dubbed ‘Blueprint for Prosperity: How South Sudan’s new laws hold the key to a transparent and accountable oil sector.’
The report according to the statement outlines the major opportunities and challenges the government faces in ensuring that management of the country’s oil wealth is responsible and open to public scrutiny.
South Sudan is involved in passing several laws aimed at ensuring transparency in the utilization of her resources particularly oil and other minerals.
It had already passed an Oil Petroleum Bill and is now deliberating on a Mining bill. It will also pass a Revenue Management bill aimed at ensuring how best the revenues from the oil shall be used.
“South Sudan’s new oil legislation contains strong public reporting, revenue management, and contract allocation requirements,” said Global Witness campaigner Dana Wilkins.
“But laws are only as good as their implementation. The real test will be in whether or not the government follows through with these commitments,” Wilkins added.
In July 2011, South Sudan became both the newest and the most oil dependent country in the world.
With the oil sector bringing in more than 98 per cent of the government’s revenues, South Sudan halted all production following a dispute with Sudan over transfer fees.
However, the two countries have now agreed on a deal for the export of South Sudan’s oil via Sudan’s pipeline infrastructure and operations are supposed expected to restart.
According to Wilkins, since independence there have been reports of new oil sector deals being negotiated and awarded outside transparent bidding processes.
No oil production data has been published, and it is not yet clear if exploration and production sharing contracts will be made public.
Wilkins said building a transparent and accountable oil sector in South Sudan will require serious political engagement from the government, major capacity building, and consistent implementation of the blueprint set out in the new legislation.
She said the report released yesterday seeks to support such efforts by providing an analysis of the new requirements and making recommendations to address major risks and challenges.
Among several key recommendations are; government should pass the draft Petroleum Revenue Management Bill without delay and ensure that strong provisions for the collection, management, auditing, and public reporting remain intact.
The Ministry of Petroleum and Mining and the Ministry of Finance and Economic Planning should immediately start implementing the requirements for transparent contract allocation, and for the publication of production data, contracts, quarterly, and annual oil revenue management reports.
It said the government and international donors must ensure that South Sudanese civil society groups, oversight bodies like the Audit Chamber and parliament have the resources, access, and technical expertise necessary to carry out effective checks on the oil sector.
“South Sudan’s new petroleum laws are a major achievement which, if implemented effectively, could ensure that South Sudanese citizens are able to see and trust in how their oil is being managed,” added Wilkins.
“Accountable management of the oil sector will be critical for the long-term development and stability of the nation,” she said.
Be the first to comment