The Committee of Economy and Finance in the Transitional National Assembly says it seems South Sudan would be better off, if it shuts down oil production than paying 80 percent of oil revenues to Sudan.

During the presentation of the budget analysis in the TNLA, the committee said the government is getting only about 19 percent of its total oil revenue.

The committee says the government continues to provide what it described as “inappropriately designed” Transitional Financial Assistance to Sudan;

The arrangement, reached in 2012, gives Sudan 15 US dollars per barrel in transitional financial assistance. Another 9 US dollars per barrel is paid for transport through Sudan.

The committee says South Sudan is currently producing 130,000 barrels per day, quoting the Ministry of Petroleum.

It observed with dismay that Sudan is taking 80 percent of the government total oil revenue, with South Sudan getting almost 20 percent while the budget is currently facing a resource gap of 47 percent.

In this regard, the team of MPs says it seems South Sudan would be better off to shut down oil production than continuing with the current arrangement with Sudan.

The analysis reads:
“The Committee has observed with dismay that Sudan is taking 80.33% of the government total oil revenue! That is the Government of the Republic of South Sudan (GRSS) is getting only 19.67% of its total oil revenue. This is because GRSS continues to provide the inappropriately designed Transitional Financial Assistance/Arrangement (TFA), which gives Sudan USD15/bbl. being transported through Sudan.

But, 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. 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.”

The presentation of the committee was passed with comments in the second reading yesterday. The committee will now review the document and presents it in the third reading. In the fourth reading, the budget will be passed without further debate.