South Sudan Instructs Oil Companies To Stop Operations

The Republic of South Sudan has instructed all foreign companies operating in its oil fields to prepare a shut down plan for halting the operation of its oil.

South Sudan Instructs Oil Companies To Stop Operations
(L-R) Hon. Benjamin Marial and Hon Stephen Dhieu Dau addressing the media [ ©Ajang Monychol]

JUBA, 22nd January 2012 – The Republic of South Sudan has instructed all foreign companies operating in its oil fields to prepare a shut down plan for halting the operation of its oil.

The order was announced by the Minister for Information and Broadcasting and the Official Spokesperson of the government of South Sudan, Dr. Barnaba Marial Benjamin to reporters last Friday in a press briefing at the Ministry of Information and Broadcasting headquarters.

He said that the Republic of South Sudan’s crude oil is now not safe in the Republic of Sudan saying that it is being stolen and prevented from reaching the international market by the government in Khartoum.

“In the last few days Khartoum has stolen approximately over $ 350million worth of oil from South Sudan using force while preventing over $ 400 million from being purchased and this is through restricting vessels from entering or leaving the port by using their security,” Dr Marial explained.

 He explained that the decision comes after series of violations from Khartoum. These include:
 
1. On the 24th Dec. 2011, government of Sudan (GOS) prevented loading of 600,000 bbls (approximately 8,000 tonnes) of South Sudan-Nile blend;
2. On the 30th, Dec. 2011, GOS detained 1000,000 bbls Dar blend sold to Vitol;
3. On the 31st, Dec. 2011, GOS prevented ships from loading 600,000 bbls of RSS Nile blend;
4. On the 3rd, Jan. 2012, GOS detained vessels loaded with 600,000 bbls of Dar blend of RSS which belongs to Petronile;
5. On the 8th, Jan. 2012, GOS detained Sinopec vessels loaded with 900,000bbls Dar blend of RSS;
6. On the 13th, Jan. 2012, GOS lifted 605,784 bbls Dar blend crude oil of RSS;
7. On the 16th, Jan. 2012, GOS lifted by force 618712 bbls Dar blend crude oil of RSS;
8. Also on the same date, GOS instructed PDOC to transfer 120,000 bbls of Dar blend crude oil of RSS to be delivered to Khartoum refinery directly from the illegal pipeline tie into KRC which was partly constructed and operated by GOS;
9. On the 19th, Jan. 2012, GOS lifted by force 600,000 bbls of RSS’ Nile blend crude oil.

“Indeed, the option of shutting down the oil companies is not the best but the Republic of South Sudan is a sovereign nation and must protect its resources”, said the minister for Petroleum and Mining Hon Stephen Dhieu Dau.

He stated that the oil operations will remain shut until a fair deal is reached with Khartoum or else it will remain so till South Sudan develops its own oil infrastructure that will ensure the people reap the true benefits of their oil.

He also promised to return the oil stolen by Khartoum right from the 24th Dec. 2011 till the last day of the theft. He stressed that he will never give up until the stolen oil is brought back to its rightful owners, the people of the Republic of South Sudan.

He further warned the oil companies involved in buying the stolen that the government of South Sudan has already taken legal procedures to trace them and will take drastic legal action against them.

“I know challenges are there after shutting the oil fields but the government through the Ministry of Finance and Economic Planning has taken measures to address them; we will soon be building our own pipeline to transport oil through the Republic of Kenya,” he said.

Source: goss.org

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22/01/2012, 10:39 PM
 - Posted by justin Chicago Opiny
The decision to shutdown the oil production by GOSS is the right decision ever taken.The Oil pipeline that the GOS is taking as a point of its own insfracture should be the one to shared as the pipeline was built when the two sudan was together,Khartoum should understand this and it was the oil from south sudan that made that pipeline to reach port sudan, Greediness does not help diverting the crude to refineries in the west of the country is immoral before God and Islam." Aram alekum" my northern brothers by stealing from your brothers in the South.

Building a a pipeline from a landlocked RSS to the port of Lamu in Kenya must be studied properly and a binding agreement reached that will remain permanent as long as the oil is still under the ground in south sudan. You must not forget Kenya used to import Electricity from Uganda but when things fell apart Uganda decided to use the port of Dar el Salam through lake victoria to Port Bell in Uganda.

If you want to benefit from the pipeline to Kenya, South sudan should built their part of the pipeline upto the border with kenya and the remaining distance must be co-sponsored by both Government. Built the refinery inside south sudan and pipe only the crude to the port of Lamu.You should have a clear picture of what is happening now and it should be a lesson to learn from. Port Lamu should not be the last resort and solution have some alternatives to ferry the crude for export. Start the pipeline now action speaks louder than words. Who knows tomorrow another source of energy might be developed that will bring the oil price down although we may not do away with oil totally as oil is needed to lubricate the machineries and minor things. Solar and Wind Power green energy are on the way to replenish oil in all aspect of the energy as improvement are being made. Act fast wind and tide wait for no man.
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