This archive report was first published on 12 August 2019.
South Sudan is working to boost its oil production, currently at 150,000 barrels per day, and has enlisted the help of the African Development Bank's African Legal Support Facility to fix the sector.
On July 31, the National Petroleum and Gas Commission of South Sudan and AfDB selected Johannesburg-based Centurion Law Group for a one-year project to review the country's oil laws and build capacity for its oil agencies.
According to Centurion chief executive NJ Ayuk, the review will involve a full review of South Sudan's Exploration and Production Sharing Agreements framework and model, with South Sudan officials trained on negotiating such agreements.
The review aims to build confidence in South Sudan, attract more investment, and strengthen relevant bodies, including the petroleum and gas commission. It will also increase exploration activity and technology use, as well as establish a local content policy.
South Sudan is working to reach its pre-war production targets of 350,000 barrels of oil per day, with total proven reserves of 3.5 billion barrels, the third largest in Africa. However, 70% of the country remains unexplored, requiring strong laws and a regulatory regime.
As NJ Ayuk noted, 'We do not see South Sudan as an industry that needs to be improved but one that needs to build a brand new future for itself.' The Petroleum and Gas Commission has the mandate to provide general policy direction on petroleum resources and supervise petroleum resource management.
The review will also scrutinize Nile Petroleum, which has been accused of operating 'almost entirely unregulated.' In its 2018 report, Global Witness said South Sudan's elites had captured Nilepet, receiving nearly $4 billion in oil advances from foreign sources as of March 2016.
