South Sudan Shuts Down Oil Production

The national council of ministers in its regular meeting held yesterday under the chairmanship of the President Salva Kiir Mayardit directed the Minister for Petroleum and Mining to shut down oil production in the Republic of South Sudan.

South Sudan Shuts Down Oil Production
The council of ministers meeting [©Thomas K.]

JUBA, 21st January 2012 – The national council of ministers in its regular meeting held yesterday under the chairmanship of the President Salva Kiir Mayardit directed the Minister for Petroleum and Mining to shut down oil production in the Republic of South Sudan.

This directive was in response to the continuous stealing of South Sudan’s oil by the Khartoum government as well as the blockage of South Sudan’s oil from going to the international markets. Reports indicate that Sudan has stolen Republic of South Sudan’s oil worth 350 million US dollars.

According to the minister for Information and Broadcasting Dr Barnaba Marial Benjamin who is also the official government spokesperson, the cabinet directive followed a report tabled by the minister in the Office of the President Hon Emmanuel LoWilla and the minister for Petroleum and Mining Hon Stephen Dhieu who had been sent by the President to the neighbouring countries such as Uganda, Kenya and Ethiopia to consult over the oil crisis between Juba and Khartoum.

Dr Marial announced that through the report the council made the following resolutions:
 
1. The minister for Petroleum and Mining is directed to take appropriate steps to shut down oil production and avoid any environmental impacts in the area;
2. The Ministry of Petroleum and Mining is directed to proceed immediately with the construction of an alternative pipeline and refineries so that the Republic of South Sudan can mitigate these problems initiated by the Khartoum government;
3. The African Union High Implementation Panel (AUHIP) will continue to be the forum for dialogue on all the outstanding issues between Juba and Khartoum;
4. The minister for Foreign Affairs and International Cooperation is directed to brief all the friends of the Republic of South Sudan about the situation.

Dr Marial also reported that the council passed a report presented by the Vice President Hon Dr Riek Machar Teny about a Memorandum of Understanding (MOU) he recently signed on behalf of the Republic of South Sudan with Abu Dhabi Investment Company. \

Dr Marial also announced that the council deliberated on a memo from the minister for Finance and Economic Planning Hon Kosti Manibe on the adoption of the recommendations of the inter-governmental fiscal relations taskforce especially on the issues of taxes. He said that the council specifically approved that:
 
1. Customs are under the national government;
2. Business profit tax is under the national government;
3. Personal income tax is under the national and the state governments;
4. General sales tax is under the national and the state governments;
5. Excise duty is under the national and the state governments;
6. Stamp duty is under the state government;
7. Real property tax is under the state government;
8. Land registration tax is under the state government;
9. Motor vehicle tax is under the state government;
10. National resources taxes are under the national and the state governments; and
11. User charges are under the national and the state governments.

Dr Marial also said that Khartoum backed the militias which kidnapped two priests from South Sudan in Rabak town. He identified the priests as Fr. Jospeh Malau and Fr. Silvester Moga. He said those militia groups have sentenced the two priests to death if a ransom of 500,000 is not paid to them.

He added that the issue is being handled by the Ministry of Foreign Affairs and International Cooperation and that the deputy minister for the ministry has travelled to Khartoum to discuss the issue with the government there.

Source: goss.org


 

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22/01/2012, 6:15 AM
 - Posted by James Monde
An infant country that depends entirely on oil revenue as its economy backbone, should not has rushed the decision to halt oil production, unless otherwise, it has a well orchestrated contingences to contain the aftermath of its decision. Directing the minster of petroleum to embark on constructing an alternative pipeline, without assuring the other institutions on how they will survive in the short-run does not neccessary suggest a careful and proactive decision taken in the light other variables. Even if this decision was intended to leverage the negotiating position of South Sudan government on outstanding issues, I do tend to think that there are myraid of issues whose unforeseen repercussions will stubbornly embarrass not only the executive and bureaucrats , but also citizens. And if that happen, it will always be a political loophole through, which the evil Arab-in the North will use to score its malicious point. But for now let's give it a wait and see attitudes. Thonchamkelei
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