Renk County community in Upper Nile State has rejected a proposal to distribute the three percent oil revenues to the oil-producing areas in the state.
On September 27th, Governor Budhok Ayang Kur issued a proposed matrix of distributing 3% of Net Petroleum Revenue to the 13 counties of the state.
According to a Letter seen by Eye Radio, the Governor listed three counties Melut, Longechuk, and Maban to have the right of 3% of oil-producing areas.
Meanwhile, the proposal that was endorsed by the national Ministry of Petroleum has also listed Renk County among the 10 counties to share the 2 percent in oil revenue.
However, Renk Community rejected the proposed matrix saying it unfairly listed Renk County among counties, which do not contribute in any way to oil production.
In a letter seen by Eye Radio, the Renk Community demanded an allocation of 30% of 3% of Net Petroleum Revenue to Renk County as a fair distribution.
Dr. Ramadan Chol, a member of the Renk Community spoke to Eye Radio this afternoon.
“The demand is as follows, Renk is almost a co-producer of oil with Melut, and therefore what we are demanding is that Melut should be given the 55% as directly producing an affected community,” he said.
“Renk is a second producer, and contributor and is also directly affected so we as the community of Renk, are demanding 30% of the revenue. 15% should go to Maban and the rest should share the 2% that is given to the state.”
He said their demands were based on the area sharing and hosting of blocks 3 & 7 in which Petroleum is being produced.
Dr. Chol stated that due to the strategic geographical location and the proximity of the area to oil fields in Maluth County, it plays a vital role in the security of petroleum production.
According to observers, the transfer of the 2% and 3% of net petroleum revenues to the petroleum-producing state and communities, has not been properly allocated and transferred.
The reports stated that key information about the 2% and 3% share for producing states and communities does not publicly get disclosed in accordance with the Petroleum Act, 2012, and Petroleum Revenue Management Act, 2013.