Parliamentary sitting. (Photo: Jemma Nunu/Facebook).
The National Parliament has resolved to summon national ministers of petroleum, Justice, and Environment over the exit of Malaysian oil company Petronas Carigali Nile Limited from South Sudan before the release of an environmental audit report.
The lawmakers are also expected to question the Chairperson of the National Petroleum and Gas Commission and the Managing Director of Nile Petroleum Corporation.
The resolution follows a postponed discussion yesterday, in which a lawmaker mistakenly cited the wrong company name.
On Wednesday, September 18, 2024, MPs deliberated on the urgent motion for the Malaysian company’s withdrawal from South Sudan’s oil exploration and production activities before the audit report was published.
The motion, presented by Hon. Asha Abdalsalam Alawad, Deputy Chairperson of the Committee on Livestock and Fisheries, raised concerns over Petronas’s departure, arguing that it contradicts Section 43 of the Petroleum Act, 2012.
The section requires companies to restore areas affected by petroleum activities and mitigate environmental damage before exiting.
Hon. Asha called for a comprehensive environmental audit report on the oil fields and immediate compensation for communities impacted by oil production.
She also urged the government to implement environmental laws and regulations to prevent further damage.
“Rt. Hon. Speaker, Hon. Members, while deliberating on this urgent and important motion before the august House, I recommend the following; One: The government should come up with a comprehensive environment audit report regarding our environment in the oil fields. RTwo: Immediate compensation for our communities affected by oil production. Three: The government should come up with environmental laws, policies and regulations to protect our environment from damage,” Hon. Asha Abdalsalam stated.
After extensive debate, the Parliament resolved to summon the Ministers of Petroleum, Environment, Justice and Constitutional Affairs.
Other includes the Chairperson of the National Petroleum and Gas Commission and the Managing Director of Nile Petroleum Corporation.
The officials will be questioned on environmental damages and who will be held accountable.
“It is resolved that we terminate the debate and pass the motion with the recommendations and amendments. The recommendation summons three ministries; Environment, Petroleum, and Justice and Constitutional Affairs, along with the Petroleum and Gas Commission and Nile Petroleum Corporation, to address the exit of Petronas Carigali Nile Limited from South Sudan and the need for compensation for the environmental damage they have caused,” Rt. Hon. Nunu said.
However, Dr Barnaba Marial Benjamin, former Minister of Presidential Affairs, revealed that Petronas’s exit was unexpected, having been agreed to in a meeting in Nairobi.
According to the contracts, the company was supposed to exit by 2026, but it left earlier than anticipated.
“Petronas they were supposed to end their contract in 2026, but now they’ve walked away. They didn’t leave for no reason. You see, the contract ends in 2026,” said Hon. Marial.
“What was happening was that Petronas wanted to sell their shares of the people of South Sudan. They wanted to do this without following the terms of the contract (APSA) with the government of South Sudan,” he said.
“They came up that they had a buyer called Savannah, and they were selling to them. When this came to the President, it was advised to ask, ‘Who is this Savannah?’
“If Petronas is moving out, there is a regulation that says South Sudan’s national oil company should take over on behalf of the government.”
Petronas Carigali Nile Limited (PCNL), a subsidiary of Malaysia’s Petronas, withdrew from South Sudan as part of a long-term investment plan.
The company held significant shares in oil operations, including 40% in Dar Petroleum Operating Company (DPOC) in Upper Nile State, 30% in Greater Pioneer Operating Company (GPOC) in Unity State and Ruweng Administrative Area, and 67.8% in Sudd Petroleum Operating Company in Unity State.
Petronas’s decision followed two years of divestment efforts, aligning with its strategy to adapt to the changing energy industry and the shift towards cleaner energy sources.
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