Nilepet run from office of president Kiir in violation of law-Says Petroleum Minister

By Ruot George

The Ministry of Petroleum is moving to replace the Ministry of Presidential Affairs as the general supervisor of the state-owned oil firm in South Sudan.

Puot Kang Chol, the Minister of Petroleum revealed Thursday that is unaware of the activities being undertaken within Nile Petroleum Corporation Ltd (NILEPET) the state-owned consortium operating the oil fields with other Joint Operating Companies (JOCs). 

“I would like to bring to your attention that as we speak today, NILEPET is managed at the office of the President (Salva Kiir). If you looked at the Petroleum Act 2012, NILEPET is supposed to be managed by the Ministry of Petroleum. Yes, the Managing Director is appointed by the President but they report to the Ministry of Petroleum,” Kang said during the consultative meeting led by the National Constitutional Amendment Committee (NCAC) in Juba.

The NCAC is mandated under the 2018 revitalized peace agreement to review and implement reforms in the economic and governance sector.

South Sudan is currently holding wide consultations aimed at reviewing it’s Petroleum Act 2012 to safe guard it’s local content.

According to the Petroleum Act, the Minister of Petroleum is mandated to chair of the Board of Directors of NILEPET, but this is not the case after the supervisory powers were transferred to the Ministry of Presidential Affairs following outbreak of conflict in December 2013.

Oil revenues funneled through NILEPET since 2016, were used as financial war chest by the government as it battled rebels. 

NILEPET operates oil blocks on behalf of the government in partnership with JOCs such as China National Petroleum Corporation (CNPC), Malaysian PETRONAS and Dar Petroleum Operating Company.