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Oil companies told to respect local content policy

Author: Jale Richard | Published: Friday, July 2, 2021

South Sudan's Minister of Petroleum, Puot Kang Chol/Jale Richard/Eye Radio.

The Minister of Petroleum has warned foreign oil companies against non-compliance to the local content policy in their operations.

The 2018 National Content Policy requires procurement of goods and services produced in South Sudan, employment and training of South Sudanese, and transfer of skills, knowledge, competence, and technical know-how.

The policy is to reduce the dominance by foreign companies, mainly from China and Malaysia and to empower local companies and south Sudanese.

The policy also requires that unskilled labor must be given to South Sudanese.

But over the past year, nationals working in the oil sector have battled with oil operating companies over the improvement of their welfare and implementation of a new human resource policy.

“Localization is the key to unlocking relevance and driving growth,” Puot Kang said during the 4th Oil and Power Conference in Juba this week.

“Compliance to the local-content policy will be measured and monitored with the submission of an annual report by oil companies operating in South Sudan to the relevant departments in the ministry of petroleum.”

The conference attracted international businesses and government agencies from neighboring countries. The government hopes that investment deals will soon be stricken in the energy and infrastructure sectors.

Minister Kang further reminded prospective investors of the need for partnerships with local companies.

“If you want to come, you are welcome. But to gain from the benefits given to the local company, you look for a local company,” he added.

The ministry of petroleum launched last week its first oil licensing round, placing up to 20,000-kilometer square potential oil blocks up for exploration.

The government says approximately 90 percent of South Sudan’s oil and gas reserves have not been explored.

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