Home | News    Thursday 24 November 2016

South Sudanese lawmakers want oil production halted over ailing economy


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.

JPEG - 10.1 kb
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.


Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 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!

    repondre message

  • 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.

    repondre message

    • 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.

      repondre message

    • 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

      repondre message

  • 24 November 2016 02:26, by salah

    A very raw deal

    repondre message

  • 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.

    repondre message

  • 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!!!!!

    repondre message

  • 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

    repondre message

  • 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.

    repondre message

  • 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.

    repondre message

Comment on this article

The following ads are provided by Google. SudanTribune has no authority on it.

Sudan Tribune

Promote your Page too

Latest Comments & Analysis

Wedding in Juba - How can you tell if a bridegroom works for Nilepet? 2017-02-24 05:25:41 By Deng Kiir Akok The Nile Petroleum Corporation is a national Oil and Gas Corporation, which engages in oil exploration, production and marketing. Famous for its abbreviation Nilepet has been a (...)

Bashir’s congratulation for Trump remains double-edged sword 2017-02-21 08:47:41 By Mahmoud A. Suleiman This is a note to the readers of this article about my use of the phrase double-edged sword. It means that Omar al-Bashir’s Speedy congratulation offer to Donald Trump (...)

South Sudan: Why ’NO’ for peace and ’YES’ for war 2017-02-20 20:45:12 By Tor Madira Machier The region and the International community has been on a campaign in a bid to end the civil war in South Sudan right after its inception in December 2013, yet the very (...)


Latest Press Releases

Militias of Bashir’s Regime and the Proxy War (1) 2017-02-08 21:49:09 Sudan Democracy First Group Militias of Bashir’s Regime and the Proxy War (1) War in the Blue Nile: Militias in the hunt of refugees and displaced population Introduction Throughout its rule, (...)

More refugees flee to Uganda than across Mediterranean 2017-01-25 09:15:39 January 25, 2017 Uganda welcomed more refugees last year than the total number of refugees and migrants crossing the Mediterranean into Europe. “Europe should learn from the way Uganda and other (...)

Carter Center welcomes new regulations on humanitarian affairs 2017-01-12 07:53:16 The Carter Center ATLANTA, Januarg 11, 2017 – The Carter Center welcomes the recent regulations issued by the government of Sudan aimed at facilitating humanitarian relief throughout the country (...)


Copyright © 2003-2017 SudanTribune - All rights reserved.