Hon. John Agany, Chairperson of Information Committee at the TNLA speaking to the Media after the launch of Strategic Plan 2021 - 2022 on Saturday 11th March 2022

The spokesperson of the transitional legislature has downplayed a recommendation by the August House, to withdraw the management of the oil corporation from Office of the President.

The recommendation was made by the parliament’s specialized committees during the recent review of the national budget.

This was after the Minister of Petroleum said he has been sidelined in the management of the state-owned oil firm which allegedly reports directly to the Office of the President.

Puot Kang Chol revealed that Nilepet is being managed by the Presidential Affairs Minister Dr. Barnaba Marial Benjamin, unless on technical matters.

Kang also said the alleged overlapping of duties makes it challenging for him to answer inquires put forth by the cabinet and the parliament.

Speaking to Eye Radio on Wednesday morning, the head of the Information Committee confirmed that some MPs demanded for the return of the state oil firm to petroleum ministry.

Hon. John Agany said this recommendation can only be fulfilled if the laws are amended.

“You know this Nilepet Cooperation has already been transferred to the Presidency by law so any institution transferred to the Presidency by law will never come unless that law is amended,” Agany said.

“So the question of bringing back the Nilepet is something that people should not dream before the amend the law.”

Agany argues that a presidential decree transferring ownership of the state-owned oil company to the presidency needs to be amended first for Nilepet to return to petroleum ministry.

However, section 12 of the Petroleum Act 2012, provides that the ministry of Petroleum shall be responsible for the management of the petroleum sector in accordance with the provisions of the transitional constitution.

Meanwhile, during the reading of the 2022-2023 budget, the Finance Committee in Parliament recommended the state-owned oil firm to be move back to Petroleum Ministry.

Hon. Changkuoth Bichiock Reth recommendations seemed during the joint report of the committees on Finance and Economic and the committee on Legislation and Legal Affairs.

According to some legislators, Nilepet should be returned to the Ministry of Petroleum for policy coordination and execution.

The Nile Petroleum Corporation, known simply as Nilepet, was formed to ensure the people of South Sudan are represented in their country’s oil sector.

It was incorporated in 2009 after the Comprehensive Peace Agreement of 2005.

In 2011, it took over from the state-owned oil company of Sudan, Sudapet, upon the independence of South Sudan.

The corporation is active across the petroleum value chain, with a stake in all three operating companies, and a significant presence in the midstream and downstream sectors.

Currently, under the office of the president, it holds shares in each of the joint venture companies set up to extract oil, while also holding primary responsibility for importing refined fuel.

The associate ventures include Nilepet, Spet Engineering, Niyat, Nile Drilling, Nile Delta, Nile Data System, among others.

In 2018, a Global Witness investigation accused Nilepet of having fallen under the direct control of President Salva Kiir and his inner circle.

The report said Nilepet is being used to funnel millions in oil revenues to the country’s brutal security services and ethnic militias, with limited oversight and accountability.