Names of the 15 South Sudanese oil Companies Sanctioned by the USA gov't
12 min readNames of the 15 South Sudanese Oil Operating Companies and Ministries Sanctioned by the USA gov’t
A Rule by the Industry and Security Bureau on 03/22/2018
This final rule adds the following [15] to the Entity List:
South Sudan
(1) Ascom Sudd Operating Company, a.k.a., the following one alias: —ASOC.
(2) Dar Petroleum Operating Company, a.k.a., the following one alias: —DPOC. Zhongnan Hotel, on UNMISS Road, South Sudan;
(3) DietsmannNile, Tomping District opposite Arkel Restaurant, two blocks north of Airport Road, Juba, South Sudan;
(4) Greater Pioneer Operating Co. Ltd, a.k.a., the following one alias: —GPOC.
(5) Juba Petrotech Technical Services Ltd, South Sudan;
(6) Nile Delta Petroleum Company, Hai Malakai neighborhood, Juba, South Sudan;
(7) Nile Drilling and Services Company, Hai Amarat, Airport Road, West Yat Building, Third Floor, Juba, South Sudan;Start Printed Page 12477
(8) Nile Petroleum Corporation, a.k.a., the following one alias: —Nilepet. Tomping District opposite Arkel Restaurant, two blocks north of Airport Road, Juba, South Sudan;
(9) Nyakek and Sons, Jubatown District near the Ivory Bank, Juba, South Sudan;
(10) Oranto Petroleum, Referendum Road, Juba, South Sudan;
(11) Safinat Group, South Sudan;
(12) SIPET Engineering and Consultancy Services, a.k.a., the following one alias: —SPECS. Tomping District opposite Arkel Restaurant, two blocks north of Airport Road, Juba, South Sudan;
(13) South Sudan Ministry of Mining, Nimra Talata, P.O. Box 376, Juba, South Sudan;
(14) South Sudan Ministry of Petroleum, Ministries Road, Opposite the Presidential Palace, P.O. Box 376, Juba, South Sudan; and
(15) Sudd Petroleum Operating Co., a.k.a., the following one alias: —SPOC. Tharjath, Unity State, South Sudan.
SUMMARY:
DATES:
This rule is effective March 22, 2018.
SUPPLEMENTARY INFORMATION:
Background
The Entity List (15 CFR, Subchapter C, part 744, Supplement No. 4) identifies entities reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The Export Administration Regulations (EAR) (15 CFR, Subchapter C, parts 730-774) imposes additional license requirements on, and limits the availability of most license exceptions for, exports, reexports, and transfers (in-country) to those listed. The license review policy for each listed entity is identified in the License Review Policy column on the Entity List, and the impact on the availability of license exceptions is described in the relevant Federal Register notice adding entities to the Entity List. BIS places entities on the Entity List pursuant to part 744 (Control Policy: End-User and End-Use Based) and part 746 (Embargoes and Other Special Controls) of the EAR.
Additions to the Entity List
This rule implements the decision of the ERC to add [15] persons to the Entity List. These twenty-three persons are being added on the basis of § 744.11 (License requirements that apply to entities acting contrary to the national security or foreign policy interests of the United States) of the EAR. The twenty-three entries added to the Entity List consist of seven entities located in Pakistan, one entity in Singapore and fifteen entities in South Sudan.
The ERC reviewed § 744.11(b) (Criteria for revising the Entity List) in Start Printed Page 12476 making the determination to add these [15] persons to the Entity List. Under that paragraph, persons for whom there is reasonable cause to believe, based on specific and articulable facts, that they have been involved, are involved, or pose a significant risk of being or becoming involved in, activities that are contrary to the national security or foreign policy interests of the United States, along with those acting on behalf of such persons, may be added to the Entity List. Paragraphs (b)(1) through (b)(5) of § 744.11 provide an illustrative list of activities that could be contrary to the national security or foreign policy interests of the United States.
The ERC determined that the fifteen entities being added to the Entity List under the destination of South Sudan—Ascom Sudd Operating Company; Dar Petroleum Operating Company; DietsmannNile; Greater Pioneer Operating Co. Ltd; Juba Petrotech Technical Services Ltd; Nile Delta Petroleum Company; Nile Drilling and Services Company; Nile Petroleum Corporation; Nyakek and Sons; Oranto Petroleum; Safinat Group; SIPET Engineering and Consultancy Services; South Sudan Ministry of Mining; South Sudan Ministry of Petroleum; and Sudd Petroleum Operating Co.—are government, parastatal and private entities in South Sudan that are involved in activities that are contrary to the foreign policy interests of the United States.
Pursuant to § 744.11(b) of the EAR, the ERC determined that the conduct of these [15] persons raises sufficient concern that prior review of exports, reexports or transfers (in-country) of all items subject to the EAR involving these persons, and the possible imposition of license conditions or license denials on shipments to the persons, will enhance BIS’s ability to prevent violations of the EAR.
Assistant Secretary for Export Administration.
[FR Doc. 2018-05789 Filed 3-21-18; 8:45 am]
The listed entities are a source of substantial revenue for the Government of South Sudan. Unfortunately, the South Sudanese Government, and corrupt official actors, use this revenue to purchase weapons and fund irregular militias that undermine the peace, security, and stability of South Sudan rather than support the welfare and current emergency food needs of the South Sudanese people. We call on the region and broader international community to join us in limiting the financial flows that fuel the continuing violence in the country.
U.S. targets South Sudan oil firms with sanctions to choke off war funds
Lesley Wroughton, Timothy Gardner
WASHINGTON (Reuters) – The United States on Wednesday imposed sanctions on 15 South Sudanese oil operators that it said were important sources of cash for the government, an action aimed at increasing pressure on President Salva Kiir to end the country’s conflict and humanitarian crisis.
The companies and government bodies would in future require special licenses to do business in the United States, the State Department said.
“The South Sudanese Government, and corrupt official actors, use this revenue to purchase weapons and fund irregular militias that undermine the peace, security, and stability of South Sudan,” the department said in a statement.
The groups on the list “are involved in activities that are contrary to the foreign policy interests of the United States,” according to a related Department of Commerce document published on Wednesday.
The South Sudanese government was not immediately available to comment.
Washington has already placed sanctions on South Sudanese military and political figures, and in January imposed an arms embargo to halt the flow of weapons into the country, signaling that it had lost patience with South Sudan’s warring factions for ignoring ceasefires.
Last year, the South Sudanese government said it planned to more than double oil production to 290,000 barrels per day (bpd) in fiscal 2017/2018.
It is the most oil-dependent country in the world, with oil accounting for almost all of its exports and around 60 percent of gross domestic product, according to the World Bank.
The Department of Commerce’s so-called Entity List does not freeze assets but requires that U.S. and foreign companies doing business with those on the list first obtain a license.
The Commerce Department placed the South Sudan Ministry of Mining, the South Sudan Ministry of Petroleum, and state oil firm Nile Petroleum and associated companies on its list.
The list includes Dar Petroleum Operating Company, an oil and gas consortium led by China National Petroleum Corp and Malaysia’s state-run oil and gas firm Petronas, the two largest oil firms operating in South Sudan.
The restrictions also cover oil distributor Nyakek and Sons; Greater Pioneer Operating; Juba Petrotech Technical Services; Nigeria’s Oranto Petroleum, and Sudd Petroleum Operating.
South Sudan has been wrecked by civil war since 2013 when troops loyal to Kiir clashed with those loyal to then-Vice President Riek Machar.
Since then, the conflict has claimed tens of thousands of lives, slashed oil production and driven about a third of the population of 12 million from their homes.
Reporting by Lesley Wroughton and Timothy Gardner; Editing by Steve Orlofsky and Rosalba O’Brien
Our Standards:The Thomson Reuters Trust Principles.
South Sudan Says U.S. Oil Sanctions Will Undermine Search for Peace
March 22, 2018, at 8:51 a.m.
South Sudan Says U.S. Oil Sanctions Will Undermine Search for Peace
JUBA (REUTERS) – U.S. sanctions on 15 South Sudanese oil operators will work against efforts to restore peace and stability in the nation, the government said on Thursday.
The sanctions, which were announced on Wednesday, will require companies and government bodies to apply for special licenses to do business in the United States, an action designed to increase pressure on President Salva Kiir to end the conflict and humanitarian crisis in South Sudan.
“These measures are viewed by the Ministry of Petroleum as counterproductive to the shared mission of the Republic of South Sudan’s and the United States’ governments to bring peace and stability to South Sudan,” the ministry said in a statement.
It pledged to work with the U.S. Department of Commerce “to remove these restrictions and resume normal relations with the U.S.”.
South Sudan has been torn by civil war since 2013 when fighting erupted between troops loyal to Kiir and those loyal to then-Vice President Riek Machar. The conflict has claimed tens of thousands of lives, slashed oil production and driven about a third of the population of 12 million from their homes.
Earlier this month, activists accused the government of funneling cash from the state oil company to militias responsible for atrocities and attacks on civilians.
Announcing the sanctions, the U.S. State Department also said the government and corrupt officials were using oil revenue to buy weapons and fund militias.
Washington has already placed sanctions on South Sudanese military and political figures, and in January imposed an arms embargo to try to halt the flow of weapons into the country, signaling that it had lost patience with the warring factions for ignoring ceasefires.
Last year, the government said it planned to more than double oil production to 290,000 barrels per day in fiscal 2017-2018.
South Sudan is the most oil-dependent country in the world, with oil accounting for almost all its exports and around 60 percent of its gross domestic product, according to the World Bank.
The government said on Thursday it will encourage more investments in the petroleum sector.
Petroleum minister Ezekiel Lol Gatkuoth extended an exploration and production sharing agreement with Petronas of Malaysia [PETR.UL] for six years.
The deal covers blocks 3 and 7 in Unity oilfield which have been shut down due to the conflict. The government said it had secured a commitment from Petronas to resume operations soon.
“Bringing back production at Unity and other fields, and increasing production overall, are the priorities of this ministry,” the minister said in a statement.
(Writing by Duncan Miriri; editing by David Stamp)
Copyright 2018 Thomson Reuters.
US Targets South Sudan Oil Sector, Ministries Over Civil War
US targets South Sudan’s oil sector, ministries over revenues fueling 5-year civil war.
March 21, 2018, at 12:47 p.m.
US Targets South Sudan Oil Sector, Ministries Over Civil War
BY SAM MEDNICK, Associated Press
JUBA, South Sudan (AP) — The United States is targeting South Sudan’s state-owned oil company, its oil and mining ministries and a dozen other oil-related entities in an attempt to stem the financial flow fuelling the country’s civil war.
South Sudan’s government and “corrupt official actors” are using the revenue to purchase weapons, fund militias and undermine peace, the State Department said in a statement Wednesday.
This is the latest attempt to hold accountable those accused of blocking the path to an end to the five-year conflict, which has created Africa’s fastest-growing refugee crisis since the Rwandan genocide in 1994.
The U.S. earlier imposed an arms embargo on South Sudan. “We remain prepared to take additional actions” including more sanctions, State Department spokeswoman Heather Nauert said.
South Sudan’s government responded angrily. The U.S. “is trying to destroy South Sudan’s economy and shut down the oil. It’s an attempt to oust the government because they know our only source of revenue is oil,” spokesman Michael Makuei told The Associated Press.
The list of entities was obtained by the AP. Their placement on the Department of Commerce’s Entity List means the U.S. will impose a license requirement on all exports, re-exports and transfers of items coming from the United States.
“We cannot stand by while the government uses the country’s resources to foment violence and war,” Mark Weinberg, spokesman for the U.S. Embassy in South Sudan, told the AP.
The U.S. is the largest donor of humanitarian aid to South Sudan, but it urged the country’s government not to “squander” the generosity.
Advocacy groups praised the new pressure on oil-rich South Sudan.
The U.S. announcement comes shortly after two reports by investigative groups that allege that South Sudan’s state-owned oil company, Nile Petroleum, is spending millions of dollars to fund the civil war as well as militias accused of committing atrocities.
The U.S. should continue the strategy of increasing pressure on “the leaders and spoilers who have hijacked the oil sector, as well as on the networks that have allowed them to use oil revenue to finance the war, line their pockets, and move money abroad,” said J.R. Mailey, special investigations director at The Sentry, one of the investigative groups.
Advocacy groups said the international community should play a stronger role in fighting the oil sector corruption that keeps the civil war going.
“International oil companies and commodity traders can play an important role in ensuring South Sudan’s oil is traded on transparent terms and in accordance with the law,” said Michael Gibb, campaign leader for conflict resources at Global Witness, which published the other recent report.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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