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S. Sudan threatens to terminate oil exploration contracts

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March 22, 2017 (JUBA) – South Sudan has threatened to terminate contacts awarded to oil exploration companies should they fail to start surveys by the end of April.

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A worker at the power plant of an oil processing facility in South Sudan’s Unity state on 22 April 2012 (Photo: Reuters)

Ezekiel Lol Gatkuoth, the Petroleum Minister, said companies have until the end of April to either implement the exploration contracts fully or leave the oil sector for those who were ready to engage with the government.

Gatkuoth gave the companies till the end of April to implement the exploration agreements. These companies include Total and Tullow. These companies were awarded two blocks, Block B1 and Block B2.

Minister Gatkuoth told reporters on Tuesday evening after a meeting with some of the oil companies in Juba that any company that fails to implement their contracts would have their contracts terminated.

“You cannot hold my block for 30 years and think that I will be celebrating and dancing with you. This is my resource and it is my country and it is my oil. You must do it my way and if you don’t do it my way, get out,” the minister told reporters.

It was not clear what prompted such unprecedented diplomatic remarks from the minister.

Total started oil exploration in Sudan, before South Sudan became independent, in the 1970s. Activities ceased following the outbreak of war in 1983 in Jonglei state. The giant oil company returned to Jonglei after the 2005 Sudanese Comprehensive Peace Agreement that guaranteed self-determination vote for South Sudan in 2011.

Since its independence, South Sudan has relied on oil for all income—a situation that has significantly compounded ongoing political and economic instability due to the fall in crude oil prices.

According to South Sudan officials, production in the past reached as high as 350,000 bpd but fell after a dispute with Sudan over fees for pumping South Sudan’s crude through Sudan’s export pipeline, which led South Sudan to halt production in 2012.

South Sudan got the lion’s share of the oil when it split from Sudan in 2011, but it’s only export route is through Sudan, giving Khartoum leverage and leading to ongoing pricing disputes.

(ST)

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  • 22 March 21:53, by Marco A. Wek

    I agree with you my brother but your government needs to make real peace for the sake of our suffering and dying people. We did not separate from North Sudan to come to finish off ourselves.
    It is shameful for politicians to make our people die and suffer more than when we were under United Sudan.

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    • 23 March 07:25, by Ayuiu Makuac Lam

      The government should secure the safety of oil companies around the oil field from the treating by the rebels of Riek Machar.

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      • 23 March 07:28, by Ayuiu Makuac Lam

        The Republic of South Sudan government should implement the agreement which had signed with other international oil companies instead of Sudan under Bashir

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  • 22 March 23:04, by Bolman

    a loser so call Lol keep lying about Unity State oil to be reopened this too big mouth running lie 24/7 hrs without stop sight, I will be deploy in Bentiu mimmm try me

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  • 23 March 02:38, by Gabriel KK

    Wonderful remarks from the Minister. Total has been hiding for years and it is now a time for them to act or get out of this old contract which I think is no longer valid.

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    • 23 March 05:03, by jubaone

      Gabriel KK,
      These are remarks of a frustrated "nyagat". Why fume? If you can then explore, drill and get out that oil yourself. You did not develop and train SS to become engineers in the oil industry except carry guns and running around like idiots. Drink your oil, you nyagat

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      • 23 March 07:21, by Gabriel KK

        Jubaone,
        We are all nyagats as per this endless conflict. Comprehensive compromise is the only solution.

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      • 23 March 07:50, by South South

        Jubaone,

        I think Gabriel KK is wasting his time to use logic with you. People like you don’t do well with logic, but slap on their faces. Do you want South Sudan to sit and wait to train engineers and then starts explore oil? Keep talking loser, we are walking.

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        • 23 March 09:23, by jubaone

          South South,
          Now again you have taken some red label "Johnnie Walker" and you just keep walking all day without getting tired and without direction. Sit down, think and then decide on direction, man! Try some monkey milk. It helps get your jienge brains straight, ya MTN

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          • 23 March 11:25, by South South

            Jubaone,

            I like to be called MTN, this means Iam more powerful than you and I can be anywhere in my country with too much power, sweet, sweet, sweet. We are working to develop South Sudan because it’s our duty as a government. I drink milk and I eat cow beef. This is how I was raised up, other tribes I know children drink alcohol at very young age because family does not own cows. Iam a Dinka man

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            • 23 March 15:57, by jubaone

              South South,
              Good luck. Just wondering, why your fellow MTNs in Aweil and Gogrial are starving to death when you have your skinny cows to eat. Some logic here! You are everywhere and nowhere at home, a real vagabond and squatter. That is the reason, you jienges have no nationalism cos you have no place to call home. Home is where food is. LOL

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              • 23 March 18:45, by South South

                Jubaone,

                Our home is called South Sudan, a country we liberated with our blood. We can move freely to any part of South Sudan at night and in the middle of the day. Go to Nile River and drink from it. Nationalism is that when someone spent 21 years fighting enemy to liberate his country, not coward people who hided, then when country is liberated they come out and say " give my tribe a minister".

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                • 23 March 20:29, by jubaone

                  South South,
                  Jienge bullshit. Most jienge fled to the bush cos they were unhappy with Kokora, some were fugitives and lawless criminals, some were bigots and cattle rustlers evading the law, some were pure tribalists and only a handful were for SS. Now you can clearly see, the very criminals have come back pretending to be liberators but indeed are "unknown gunmen" and thugs called mathiang anyors

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                • 24 March 18:21, by Force 1

                  South Sudan;

                  Well said and well-done I couldn’t agree more with everything you said to this pinhead called Juba-loser Juba-coward! He knows nothing about liberation. All he does is; when there is war in South Sudan; he claimed Uganda citizenship and when there is something to eat in S. Sudan, he claim S. Sudan nationality! Just a food minded.

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  • 23 March 04:07, by Bol Malual

    Lol and Taban created the tragedy of our country in 2013 because they didnt have positions in Government then. They faked to be supporters of Riek and foolish Riek believed them. In 2016, Taban was not appointed as Minister of Petroleum and Ezekiel was made an office manager of Riek. Then, they connived the 2016 July crisis and then they remained and took IO power. what a shame!

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    • 23 March 05:50, by Kuch

      Bol Malual, Taban Deng Gai was deep in the neck of their foiled of their 15/12/2013 coup with numerous others including some criminals in the US, the UK and their UN. We just want to get over this bullshit, but some criminals are going to be hanged or fire-squatted. Do you fellows know the reason the traitors like Pagan Amuom, Majak Agoot, Costi Manibe et al are not coming back to South Sudan?>>>

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      • 23 March 06:01, by Kuch

        We just need to get our country together first that was almost destroyed by some greedy fools. Do you fellows know, Mr. Lul later went and joined Riek Machar than his gang of the other thieves of the so-called G10 of Pagan Amuom? The US, the UK, the UN, the NGOs, their evil juus and some of their criminals in between have been experimenting our country and our people as their most foolish and>>>

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        • 23 March 06:11, by Kuch

          the most backward people on earth. And it is always shown by our Nuers and some of their Equatoria allies. We are back fellows. We are going to bomb the damn white Americans, the British people, their evil juus and some of their criminals in between out of our country. Once and for all. The Nuers and their Equatorians rubbish, are going to bomb the evils very badly and to near extension out>>>

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        • 23 March 06:16, by Kuch

          the most backward people on earth. And it is always shown by our Nuers and some of their Equatoria allies. We are back fellows. We are going to bomb the damn white Americans, the British people, their evil juus and some of their criminals in between out of our country. Once and for all. The Nuers and their Equatorians rubbish, are going to bomb the evils very badly and to near extinction out>>>

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          • 23 March 06:26, by Kuch

            of our country with their damn US, the UK, their UN, their so-called sleazy NGOs, their evil juus and some of their criminals in between. We have been inform you fools time and time and again that we are going to bomb the evils but you fools keep ignoring our warnings.

            Fellows, we don’t like white people most the evil evil juus, English people, the so-called cloned arabs of North Sudan and the>>>

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          • 23 March 07:47, by Tilo

            Dear Kuch,
            Are you imply that US, UK, UN, Nuer, Equatorians and the rest of the world are all Evil and the most backward people on earth?
            Accept you Dinkans?
            Your comments here is becoming pathetic, you need to understand what you re writing for most of it doesn’t make sense.
            There is no way on earth that everybody around me is bad accept myself, people need Education & orientation to real worl

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            • 24 March 05:33, by jubaone

              Tilo,
              It is perhaps easier to teach a monkey how to use a spoon but it is impossible to convince such unteachable jienges logic and sanity. Thats the way they are. Just be ready to take it at length with them. That is the reason they must be left alone. Just avoid and dont associate or socialize with them, then you are safe. You are done once you mix up with them.

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  • 23 March 05:34, by village leader

    Since 1970s that the company has been operating in S. Sudan bt didn’t train S. Sudanese to get skills. Anyway, I don’t have to blame it bt stakeholders & corrupt govt.Everything is not done in a sincere & systematic way in S. Sudan. P’ple mind and heart is always money even this minister wants to terminate the contract bcoz of monies.

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  • 23 March 07:17, by Tilo

    First of improve the security situation before you threaten to terminate the oil contract. The oil companies care more about the safety of their employee than you care about your citizens.
    Your country is in chaos, what you need now is peace,
    South Sudanese leaders seems care more about oil production to embezzle money than they care for the suffering citizen

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  • 23 March 08:59, by Kush Natives

    “You cannot hold my block for 30 years and think that I will be celebrating and dancing with you. This is my resource and it is my country and it is my oil. You must do it my way and if you don’t do it my way, get out,” the minister told reporters. Total, FYI, you must careful out there reviewing your contract! But, I haven’t heard one thing from the ministry of energy, an environmental safety!

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  • 23 March 09:17, by Kush Natives

    in my understanding, these returnees want a capital gain right away! whether, the share is available or not. Because of the reports itself, you can predict something here. The minister never mentioned the geographical area of the oil accordingly. That mean, there are those who’re here, making a short cuts and think that they’re different from Riek Machar. What I am saying here_con

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  • 23 March 09:29, by Kush Natives

    con_ is this, SS must be very careful, because these teams are here to loots as much as they could get, and cause more ever complicated problem ever in the coming future. If an oil location is not well located or identified correctly in geography, then we’re not ceasing from our own mess, an IO are dragging their feet deep.

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  • 23 March 10:11, by kuac Agol

    The Hon. Minister would have made it clear before these companies start messing up with our wells in and around the Country, now they will understand the word termination if fail to do so

    The only problem we have in South Sudan is lack of consistency in decision making, we easily change any decision we make so far, otherwise, we like the pressure being on the companies who are still adoring Bashi

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    • 23 March 12:02, by nuer food lovers

      Where will Malong get Dollars to sustain his 75 wives in Ug and Kenya?Lol must be careful otherwise Malong will deal with him accordingly. Millions of citizens are leaving the country just appeased this plogmy.. Kiir mayardit is foolish president we regret for the whole erra of our history.

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  • 25 March 09:13, by bol santino bol kuot

    i agreed to this action.if all the ministers in South Sudan should act in such away then there will be problems at all.
    some one can not just block the enable one and hold the position without any thing meaningful seen.

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