Oil regulatory bodies given ultimatum to resolve confusion at NILEPET
The National Constitutional Amendment Committee (NCAC) has given oil regulatory bodies a one-week ultimatum to decide the overseer of the country’s oil and gas company, Nile Petroleum Corporation.
According to the NCAC Chairperson, Gichira Kibara, the Ministry of Petroleum, National Petroleum and Gas Commission, and Nile Petroleum Corporation (Nilepet), have until Friday next week (July 1) to reconcile the concerns raised by the committee.
Kibara said that three bodies will have to report back to the committee with a concrete decision on how to work collectively and ensure accountability in the management of the country’s crucial oil giant.
“We agreed yesterday that the undersecretary of petroleum would convene a meeting between the commission, the corporation and themselves so that they have a coordinated approach to the changes that they are proposing to us,” Kibara.
“We agreed on a deadline of next week so that they have [up to] Wednesday to finish their consultations, and we have the proposals by Friday. This act has a very short time because we will be going to the elections act which you know is very urgent for the elections that are anticipated before the end of the transitional period.”
He added that the proposal of the Auditor General about the act, excluding the Audit Chamber from auditing, should be considered and a meeting is convened to that effect.
On Thursday, the Minister for Petroleum, Puot Kang Chol proposed to NCAC that the issue of who Nilepet must report to should be addressed by the Act, adding that he found challenges trying to answer questions about Nilepet revenue and activities.
“It is always difficult because the line ministry in terms of activities that Nilepet is carrying out his ministry of petroleum, but the chair is the minister of presidential affairs. So, you find it difficult who to report to the cabinet,” he lamented.
“When I am asked, I will say I don’t know because they are supposed to report to the ministry of presidential affairs. But when it comes to the activities of the company, they are related to us. I would recommend that you look at it very critically and look at it with the mindset that we want to come out with the best act and a sector that we should be able to improve.”
He said the corporation reported to the office of the president yet the activities are aligned with those of the ministry of petroleum.
Petroleum Act
But Chapter III, 10, 1 and 2, of the Petroleum Act 2012 calls for the establishment National Petroleum and Gas Commission of South Sudan to make policies and report to the president, the National Legislative Assembly and the Council of States.
It states clearly that the commission reports to the president, the legislative assembly, and the council of states.
“The commission shall be a policy-making body and shall report to the president, the National Legislative Assembly, and the Council of States,” the Petroleum Act 2012 states.
The Act also bars government ministers from being members of the commission, “No minister of the government shall be a member of the commission. The Chairperson, the Deputy Chairperson and the Secretary-General shall not be appointed from any of the relevant national ministries or institutions,” the Petroleum Act 2012 reads.
