Govt demands $3 billion from oil companies

The government of South Sudan is demanding $3 billion from the oil companies operating in the oil fields, an amount it says went missing from the government share.

The demand comes in the wake of an audit that was conducted to review the petroleum agreements signed between the government and the oil companies following a resolution that was passed by the Council of Ministers this year.

The resolution provided for equal pay that under the unified salary structure for the staff working for the oil companies, an environmental audit and the $3 billion.

Speaking to journalists on Friday, Information Minister Michael Makuei revealed the sum of $ 3,334,762,170 the government is demanding was discovered to have been illegally taken by the oil companies from the share due to the government.

“The result of the audit was the one that gave us the report that this amount is missing and should have been paid by the companies to the government. So this is how we got the amount and this is what we want oil companies to refund the amount,” said Makuei in a briefing.

Makuei said that the Minister of Petroleum Puot Kang was also directed by the cabinet to immediately implement the result of the environmental audit which is being resisted by the oil companies. Mr Chuol is also to keep the cabinet updated on the implementation progress before presenting the final report.

“These three issues ought to be implemented and the minister should keep the cabinet informed on the progress of this resolution,” he stressed.

He told the press that the minister of petroleum had briefed the cabinet about the resistance by the oil companies to implement the unified salary structure and the environmental audit in the oil fields.

“The cabinet affirmed and reinforced its resolution number 26, 2021, and directed the minister to ensure the operationalisation and implementation of the resolution in later and spirit, and that is to make sure the salary structure is unified and that the company accept and pays staff accordingly,” Makuei said.

South Sudan Petroleum Act 2012 provides for the protection of the environment by oil companies in the oil production field but this has been ignored by the companies due to failure by the government to follow agreements it signed with the oil companies.

The government launched an audit of oil sides in February this year to study the environmental impact caused by oil production to safeguard the local communities leaving around the oil field and the ecosystem after years of financial mismanagement and reports of poor environmental practice by oil companies.

Staff working for the oil companies have also demanded equal pay by the companies, a demand that has not been fulfilled by the companies update despite strikes by the local staff to lay down their tools.