{"id":1449,"date":"2014-07-15T00:02:28","date_gmt":"2014-07-14T21:02:28","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=1449"},"modified":"2015-09-09T09:27:33","modified_gmt":"2015-09-09T09:27:33","slug":"three-years-in-is-south-sudans-oil-driving-its-crisis","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/three-years-in-is-south-sudans-oil-driving-its-crisis\/","title":{"rendered":"Three years in, is South Sudan\u2019s oil driving its crisis?"},"content":{"rendered":"

Original story\u00a0globalwitness.org<\/a><\/p>\n

On the third anniversary of its independence, South Sudan looks like it is sliding into a dangerous cycle of oil-backed debt. The new budget, announced last week, signaled that another 3 billion SSP ($1 billion) would have to be borrowed from oil companies next year.<\/p>\n

This is a huge sum\u00a0and is\u00a0almost equivalent to the amount donors are spending to alleviate the humanitarian catastrophe that is unfolding. Worryingly,\u00a0most of this money will go straight back to the same oil companies, to pay off last year\u2019s debts.<\/p>\n

More alarmingly still, the South Sudanese public have no idea on what terms this $1 billion is being borrowed. It\u2019s all been agreed behind closed doors. Citizens must be told the terms that their government have struck with the oil companies so they can be sure their government is negotiating the best deals in the high risk world of oil-backed borrowing.<\/p>\n

The government and the rebels failure to negotiate a way out of the conflict is pushing up state spending on the armed forces, while development projects go unfunded. Around 35% of the budget will be used to pay for the security sector. At the same time, Ban Ki-Moon has warned that if the conflict continues, half of South Sudan\u2019s population will be homeless, starving or dead by the end of the year. \u00a0After the debts are paid-off\u00a0and the soldiers paid, little remains for spending that will directly benefit ordinary citizens. Only 12% of the budget will be invested into healthcare, infrastructure and education\u00a0combined.<\/em><\/p>\n

We have seen these types of debt cycles before. If the government is to avoid bankruptcy, it must take steps to get its house in order and make any future loan deals transparent. If it\u00a0is serious about investing in the South Sudanese people, \u00a0it also\u00a0needs to get serious about the peace talks too. And if these talks are to produce a stable South Sudan, oil has to be at the top of the agenda.<\/p>\n","protected":false},"excerpt":{"rendered":"

Original story\u00a0globalwitness.org On the third anniversary of its independence, South Sudan looks like it is sliding into a dangerous cycle of oil-backed debt. The new budget, announced last week, signaled … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":934,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[6,7],"tags":[219,1225,1827,2382],"class_list":["post-1449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-by-others","category-oil-politics","tag-ban-ki-moon","tag-juba","tag-oil","tag-south-sudan","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-nn","jetpack-related-posts":[{"id":1113,"url":"https:\/\/www.oilnewskenya.com\/index.php\/south-sudan-borrows-200-million-to-operate-oil-fields\/","url_meta":{"origin":1449,"position":0},"title":"South Sudan Borrows $200 Million to operate oil fields","author":"Samuel Kamau Mbote","date":"May 30, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] The Government of South Sudan is reported to have acquired $200 million from oil companies inside its territory as the ongoing civil war continues to cause a crunch on the economy. In a report by Bloomberg South Sudan also plans to postpone its obligations to settle domestic loans.\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/human-rights.jpg?fit=668%2C444&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10552,"url":"https:\/\/www.oilnewskenya.com\/index.php\/south-sudan-eyes-the-west-for-investments-in-its-oil-industry\/","url_meta":{"origin":1449,"position":1},"title":"South Sudan Eyes the West for Investments in its Oil Industry","author":"","date":"July 1, 2021","format":false,"excerpt":"Decades after the western oil giant Chevron exited South Sudan leaving oil majors from the East mainly India and China the South Sudan government is now seeking to attract new investments from Europe and the Americas. In the past decade the country has seen interest from oil majors including French\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/south_sudan_high_res_resize_2.2e16d0ba.fill-1600x900-1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/south_sudan_high_res_resize_2.2e16d0ba.fill-1600x900-1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/south_sudan_high_res_resize_2.2e16d0ba.fill-1600x900-1.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/south_sudan_high_res_resize_2.2e16d0ba.fill-1600x900-1.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/south_sudan_high_res_resize_2.2e16d0ba.fill-1600x900-1.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":12948,"url":"https:\/\/www.oilnewskenya.com\/index.php\/south-sudan-petronas-to-acquire-savannah-energys-entire-oil-and-gas-business-for-up-to-us1-25-billion\/","url_meta":{"origin":1449,"position":2},"title":"SOUTH SUDAN: PETRONAS to acquire Savannah Energy’s Entire Oil and Gas Business for up to US$1.25 billion","author":"","date":"December 13, 2022","format":false,"excerpt":"Savannah Energy PLC has announced that it has entered into a Share Purchase Agreement (SPA) with PETRONAS International Corporation Limited to acquire PETRONAS'\u00a0entire oil and gas business in South Sudan through the acquisition of Petronas Carigali Nile Limited, for a total cash consideration of up to US$1.25 billion, subject to\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/South-Sudan-Toors-oil-Field.jpg?fit=919%2C617&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/South-Sudan-Toors-oil-Field.jpg?fit=919%2C617&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/South-Sudan-Toors-oil-Field.jpg?fit=919%2C617&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/South-Sudan-Toors-oil-Field.jpg?fit=919%2C617&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13001,"url":"https:\/\/www.oilnewskenya.com\/index.php\/south-sudan-klg-advises-savannah-energy-on-1-25b-acquisition-of-petronas-oil-gas-business\/","url_meta":{"origin":1449,"position":3},"title":"SOUTH SUDAN: KLG Advises Savannah Energy on $1.25B Acquisition of Petronas Oil & Gas Business","author":"","date":"December 19, 2022","format":false,"excerpt":"Kirk Lovegrove & Company has advised Savannah Energy PLC on the acquisition of PETRONAS\u2019s entire oil and gas business in South Sudan for a total cash consideration of up to US$1.25 billion. 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Some aeromagnetic and seismic data have been acquired for the\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Atlas-Oranto-joint-logo.JPG.jpg?fit=1132%2C202&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Atlas-Oranto-joint-logo.JPG.jpg?fit=1132%2C202&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Atlas-Oranto-joint-logo.JPG.jpg?fit=1132%2C202&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Atlas-Oranto-joint-logo.JPG.jpg?fit=1132%2C202&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/03\/Atlas-Oranto-joint-logo.JPG.jpg?fit=1132%2C202&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":7674,"url":"https:\/\/www.oilnewskenya.com\/index.php\/south-africas-state-owned-oil-company-signs-deal-to-explore-highly-prospective-oil-block-b2-in-south-sudan\/","url_meta":{"origin":1449,"position":5},"title":"South Africa\u2019s State-owned Oil Company Signs Deal to Explore Highly-prospective Oil Block B2 in South Sudan","author":"","date":"May 7, 2019","format":false,"excerpt":"South Africa\u2019s state-owned oil company Strategic Fuel Fund (SFF) will own and operate Block B2; In 2018, South Africa agreed to invest $1billion into South Sudan\u2019s energy infrastructure; South Sudan has the third-largest oil reserves in sub-Saharan Africa, estimated at 3.5 billion barrels, with just 30 percent of the country\u2026","rel":"","context":"In \"Ministry of Petroleum\"","block_context":{"text":"Ministry of Petroleum","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/ministry-of-petroleum\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/05\/PR_RSS-MoP_B2.jpeg?fit=600%2C440&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/05\/PR_RSS-MoP_B2.jpeg?fit=600%2C440&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/05\/PR_RSS-MoP_B2.jpeg?fit=600%2C440&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=1449"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1449\/revisions"}],"predecessor-version":[{"id":3649,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1449\/revisions\/3649"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/934"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=1449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=1449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=1449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}