Oil facility in Tharjiath, Unity State. | Photo: Benjamin Takpiny.

The government of Upper Nile State has resolved that all the counties in the state will benefit from the three percent of oil revenues allocated to oil-producing areas in the state.

The State Minister of Finance Pal Deng says all 13 Counties will share the fund according to the law, instead of the previous 6 counties that used benefited.

He says the decision is part of the state government’s effort to develop all counties.

In September last year, the former governor Budhok Ayang issued a proposed matrix of distributing 3% of Net Petroleum Revenue to the 13 counties.

But the proposal was rejected by some communities including Renk and Melut Communities.

However, a new proposal that gives the lion’s share to Melut County has been adopted by the state government.

The new matrix allocates 55 percent out of the 3 percent to Melut County and 45 percent to all the other 12 counties despite their proximity to the oilfields.

The new beneficiaries are Baliet, Fashoda, Maiwut, Nasir, Panyikang, Ulang,  and  Makal County.

They will be getting the same share as Renk, Maban, Longechuk, Akoka, and Manyo, which fall around the oilfields.

Minister. Pal Deng says the new proposal is according to the Petroleum Revenue Management Act, of 2013.

“Actually, regarding to the issue of 3% oil fund distribution to all counties, it is true. It has happened, but the issue of one account for all counties is not yet implemented,” he said.

“But a letter from the former governor had asked the national ministry of finance that all the money should be deposited in one account for accountability.”

“This time, all counties will get their share from the 45% that will be distributed to all counties out of 3%, actually there was a talk that the 45% is for the neighboring counties but the law has given all Counties.”

Meanwhile, observers say 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.