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South Sudanese lawmakers want oil production halted over ailing economy

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November 23, 2016 (JUBA) – South Sudan lawmakers proposed on Wednesday that the country’s oil production be halted due to what they described as “inappropriate financial assistance” given to Sudan.

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A pipeline that transports crude oil from the south to Port Sudan (Reuters)

During deliberation on the 2016/2017 financial budget, lawmakers on South Sudan’s Parliamentary Committee for Finance said Khartoum takes the chunk of the revenue from oil and Juba must re-consider continued production.

“The Committee has observed with dismay that Sudan is taking 80.33% of the government total oil revenue! (…)The Government of the Republic of South Sudan is getting only 19.67% of its total oil revenue,” said Goc Makuac Mayol, the chairperson for Finance Committee in the Transitional National Legislative Assembly.

Reading through a list of recommendations from his committee, Mayol said what Juba pays its northern neighbour is in compliance with the September 2012 Agreement between the two countries.

“This is because GRSS [Government of the Republic of South Sudan] continues to provide the inappropriately designed Transitional Financial Assistance/Arrangement (TFA), which gives Sudan USD15/bbl. being transported through Sudan,” said the lawmaker.

“In this regard, it would seem to the committee that South Sudan would be better off if she were to shut down oil production than continuing with the current arrangement with Sudan,” he added.

Mayol backed his argument on South Sudan’s financial woes, by citing a fiscal gap of 47% said to be in the budget before parliament.

“South Sudan is currently facing a resource gap of 47% in the proposed FY2016/2017 and yet she is providing a financial assistance to Sudan. Payment to Sudan must not exceed 30% of GRSS’ crude oil entitlement,” stressed the lawmaker.

South Sudan, it was agreed in 2012, would and Sudan $24 per barrel of as pipeline fee and other tariffs. However, the fall in the price of oil means South Sudan is unable to fetch substantial revenue from oil.

The budget will be presented to Parliament for third and final [fourth] reading next week. If MPs incorporate the recommendation to shut down oil production, fiscal gap would wider, according to analysts.

Oil accounts for 83% of the SSP 29.6 billion budget before parliament.

South Sudan first halted oil production in 2012 over accusation that Sudan was “stealing” crude oil. Sudan, at the time, said it was confiscating quantities of oil equivalent to the tariffs for pipeline use.

(ST)

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  • 23 November 2016 19:34, by Eastern

    This is what befalls a country ruled by MONKEYS clad in ill fitting suits. Serves South Sudan right!

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  • 24 November 2016 00:12, by Naath

    Look at these tribal chief Kiir’s personal lawmakers are talking bullshit! They do not worry very much about the well-being of the nation and her citizens but disturbance by the drop of the oil prices. South Sudan is a country blessed with curse and devil president with evil heart.

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    • 24 November 2016 06:40, by Akuma

      Shutting down oil production will be the best option otherwise South Sudanese citizens are benefiting at all. Pagan sign that September 2012 agreement with agenda of regime change and being help by Khartoum government.

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    • 25 November 2016 00:10, by Mawienmarko

      Keep on preaching tribalism but one day you will regret why you did it.I have seen most of your comments always sacks.#naath style up please.It is a good move made by these MPs who failed our economic.How can our pounds be useless like this?Something must be done urgently else the country is at brink of collapsing and citizens will nolonger afford a daily meals.The government has bring peace by ge

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  • 24 November 2016 02:26, by salah

    A very raw deal

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  • 24 November 2016 02:50, by Augustino

    A deal with Khartoum was just Pagan Amum deal and there is a need to be reviewed. Nothing bad about reviews of any agreement.

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  • 24 November 2016 04:51, by Eastern

    Khartoum is also feeling the heat of economic meltdown. Khartoum denied Dr Machar entry just to allow oil to continue flowing to all it to continue recieving the 80.33% of the oil output from the villagers in Juba. This arrangement won’t save the butts of those claiming to rule in Juba and Khartoum. The reality will overtake them soon!!!!!

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  • 24 November 2016 13:44, by du-guecdit

    Sudan is taking 80.33% of total oil revenue, the govt of south Sudan is getting 19.67% of its total oil revenue, what a calamity? why fixing the price per barrel,etc instead of percentage per quantity. Who could have signed this Agreement in 2012 with Sudan if not the chicken headed enemy of the People of South Sudan. I support the Rt. Hon. MP to shut down oil productn instead of spoon-feeding Sud

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  • 24 November 2016 13:58, by du-guecdit

    Hi brother Naath, your are always obsessed of insulting the person of President Salva Kiir, insults will never solve the bitterness and the pain you are going through rather than putting yourself together and pray for the best.

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  • 26 November 2016 17:03, by Dinka Fighter

    Law makers didn’t think well that time to propose shut down of oil fields, this is an abomination to country without any source of income apart from oil.But please brothers, let us not call them monkeys because you voted for your monkeys in the various constituencies.

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