South Sudan seeks funds to develop oil assets

Posted: September 22, 2011 by PaanLuel Wël Media Ltd. in Junub Sudan

September 22, 2011, 8:00 am

By Kwasi Kpodo and Clair Macdougall ACCRA (Reuters) –

South Sudan is taking control of vast oil resources previously managed by the North but the poor, two-month-old state needs urgent funds to boost infrastructure, a top oil ministry adviser told Reuters on Wednesday.

"We could say that about 50 percent of oil resources that were going to the North are southern assets and I can say that a greater part of this is coming to us now," Angelina Teny said in an interview on the margins of an energy conference in Ghana. "Our resources are being managed from the South, although not totally — but at least the (oil) companies are now beginning to move southwards," she said, adding the new government would soon establish a consortium to oversee oil production.

"But again, we should recognize that the South is starting from a bad situation — we’ve been described by many as the least developed — so despite these resources we’d still need huge support to make them useful to our people," she said on the sidelines of an African energy conference in Accra, Ghana. Teny, adviser on petroleum matters to the Energy and Mines Ministry, led negotiations over the oil assets with the northern government in Khartoum. She said the new state already controls most of the oil fields. "Two major blocks are entirely located in the South and about 65 percent of the remaining are also in the South," she said of oil assets controlled by the new state.

She said output from "those fields that are producing" was around 300,000 barrels per day. She said apart from embarking on a vigorous investment drive, there were plans to hold an international donors’ conference. The government had outlined a three-year development program to tackle some of the infrastructure needs, including the building of an oil refinery for the domestic market, Teny said. "Presently, we are importing oil products and its not easy having to import oil when you are a producer, but again it encourages us to think very fast in building a refinery to address domestic needs.

That is being discussed and the government is very serious about it." CONTRACT REVIEW A PRIORITY The government has also prioritized the enactment of a law to regulate the oil sector, Teny said, adding that work was almost completed and the law would soon be published. She said in addition to the need for infrastructure such as roads and pipelines and huge service requirements, the South required capital towards meeting the Millennium Development Goals.

Teny said after initial hesitation, oil exploration companies were responding positively to Juba’s control of the resources. "They have started coming down South and we’re beginning to talk," she said, noting that so far the new government had not awarded any new oil contract and that its priority was to review the existing contracts to ensure transparency. She said there had been a general lack of information on the oil assets which made it difficult for Juba to assess reserves.

Teny said that currently there was virtually no economic relationship with the North and that Khartoum had closed major trading borders between the two sides, leading to a spate of business bankruptcies on both sides. "The economic relationship between the North and the South at this point in time is a bit rough," she said.

  1. welpinynhom says:

    Aguer Rual 24th June 2014
    Statement regarding Salva Kiir’s betrayal of the people of South Sudan, and his unsuitability for the presidency.
    My name is Aguer Rual and I was born in Warrap State, Mayen Abun, in 1952. My primary school education was interrupted by the first civil war, when my school was attacked and the school’s teachers killed. At this time I joined Anyanya 1 (1964). In 1965 I went to Zaire and joined the southern Sudanese rebels and fought with them against Khartoum until 1972 (the Addis Ababa Accord).
    I resumed my schooling until finishing secondary school in Juba in 1982. When the war broke out again in 1983, I went to Malakal for family reasons. There I attended a military conference, comprising senior and junior officers of the southern Sudanese army, about the imminent violation of the Addis Ababa accord. The purpose of the conference, which was initiated by Kerubino Kuanyin Bol and William Nyuon Bany, and supported by other officers, was to discuss ways to protect the Accord and resist Nimiery’s decision to impose sharia law, begin the unpopular Jonglei Canal project, transfer the South Sudanese Army to the north and establish oil refineries in the north instead of in the oil-producing areas of South Sudan.
    During that conference in Malakal, I met Salva Kiir, who at that time was a military intelligence officer attached to Nimeiry’s administration.
    Nimeiry was opposed to the conference which he saw as a threat to his power. He ordered the Arab military commander based in Malakal, along with Salva Kiir, to prevent the conference from continuing. However, the conference concluded successfully, with a resolution that none of Nimiery’s decisions would be adhered to and that the southern Sudanese army was prepared to fight if necessary under the command of Kerubino and William.
    Salva Kiir was then assigned and paid to arrest the initiators (Kerubino and William) of the conference and send them to Khartoum to be tried at the military court. We know about this assignment because Salva Kiir talked about it to many people and was evidently in many events. He had earlier attended military training in Khartoum and after his graduation he asked to be transferred to the Intelligence unit in order to supply information about southern resistance directly to Nimeiry.
    Before seeking to take that role, Salva Kiir had developed resentment about his perception of being under-promoted when he returned from the guerrilla movement. He saw his colleagues being promoted above him and appeared to decide to move in another direction to obtain a higher rank in the army. He also saw his family as missing out on privileges and remunerations which other families enjoyed.
    When it became evident to Kerubinio and William that Salva had become an enemy to the southern Sudanese in general and themselves in particular, they mobilized the southern Sudanese people to join them to fight the twenty-one thousand-strong army Nimeiry had sent to attack them in Bor. The army marched from Juba to Bor, which took five days, and arrived on the fifteenth of May, 1983. They ransacked the town of Bor and the fighting began on the sixteenth of May.
    Kerubino was badly injured and his soldiers defeated, while those civilians who remained alive after being heavily attacked, including students, fled to the bush, leaving Bor empty.
    An additional army division came from the north to capture William Nyuon in Ayot, where he was commander of a battalion of the Sudanese armed forces. As organizer of the Malakal conference, he was on the black list targeted by Salva as an informant of Nimeiry, as I was also as an attendee. Understanding what was going to happen, William instigated a revolt within his battalion to eliminate the threat to his life by the northern soldiers in his battalion.
    Having left Malakal because of the threat to my life caused by Salva and his intelligence personnel, and arriving in Ayot to join William, I found the revolt already underway. The revolt was successful and there were many casualties of the northern army. Therefore we held Ayot for about two months, after which I left to the place where Kerubino was recovering from his wounds in the bush. The two battalions, those of Kerubino and William, were merged and moved to Bilpam just inside Ethiopia.
    While in Bilpam and Etang, a misunderstanding began between John Garang, Akuot Atem and Gai Tut about the formation of the movement.
    After the SPLA and SPLM were formed, Garang was appointed as temporary leader.
    After Malakal was deserted, Nimeiry sent Salva Kiir to complete his mission of destroying the movement and eliminate the founders and key politicians. By that time, Salva was known to be untrustworthy; he had created division and conflicts between Garang and the founders of the movement which had contributed to the deaths of Kerubino and William and many other leaders.
    In 2005, before the signing of the Comprehensive Peace Agreement, Salva Kiir managed to leach power from Garang by using deception and duplicity in accord with the regime in Khartoum, whose agenda was to deny the effective rights of the southern Sudanese people with the objective of maintaining de facto power and control of resources.
    In 2011, the tactics Salva Kiir had previously employed paid off in the sense of his personal ambitions when he was nominated president. The NCP had been required by the terms of the CPA to make unity attractive but few believed unity was possible. However, it is known that Salva himself preferred, lobbied for and voted for unity in a hide. He invited Muslims to spread Islam throughout southern Sudan within the CPA period, which struck a discordant quality note but was evidently in accord with the wishes of Khartoum. He also invited other troublemakers from other parts of Africa and within his poor clans to create insecurity and to profit from southern Sudan while contributing nothing.
    In conclusion, there is evidence that for thirty years, Salva Kiir has pursued an agenda entirely at odds with the wishes and well-being of the people of South Sudan, that is, an alliance with their traditional enemy.
    Solutions for the problems and devastation left by war and caused by him in South Sudan have depended on the always precarious unity of its tribal people. Salva Kiir’s allegiances, behavior during the war and poor leadership since assuming the presidency amount to a pattern of gross unsuitability for a position of responsibility. His actions in December 2013 and since can be seen to be consistent with his past conduct.

    Based on the above illustration of Salva Kiir’s character, I wish to declare that it is my recommendation that he be removed from office and tried in a Court of Justice within South Sudan. The South Sudanese people, who have suffered from his machinations, should be able to witness his trial and be satisfied that justice is done.
    Subsequently, the unity of the country must be the first priority of any interim government, and from there, the expectations of the people for peace, prosperity and equality must be addressed.
    Whatever system replaces the corrupt government which has hitherto held power, I believe the federal system to be preferable to any other. This must include the facility to reward those who struggled for the freedom and independence of their country Or the SPLA/M.
    I am calling the people of greater Bhar el-Ghazal, all South Sudan people, all civil societies organizations, police forces, farmers, students, teachers, all political parties, SPLA and Dinka to consider the evidence laid out above and support the truth rather than falling back on tribal allegiances. This crisis is too important to do otherwise.
    “Declare to join rebel under the leadership Dr Riek Machar”.

    Yours faithfully,
    Aguer Rual
    Mobile: 0469106648


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