The Oil for Development programme in South Sudan

Further OfD support to South Sudanese authorities is contingent on political commitment to implementing the peace agreement, and the extent to which the OfD programme possesses the tools needed to support the same peace agreement.
In July 2016, when conflict once again erupted in Juba, the institutional cooperation was put on hold. During 2019, the support through IMF’s fund for capacity building on macroeconomic policies and statistics will also come to an end.
 
Further OfD support to South Sudanese authorities is contingent on political commitment to implementing the peace agreement, and the extent to which the OfD programme possesses the tools needed to support the same peace agreement.
 
The destruction of oil facilities in conflict has caused reduced oil production for both Sudan and South Sudan since 2012.
 
Since 2018, oil facilities and production have been restarted in several fields through cooperative efforts. The reopening of the Thar Jat oilfield led to an increase of production in South Sudan from 130.000 to 150.000 barrels of oil per day, and increased income to Sudan through added tariffs. Further production is expected from other fields to be reopened in 2019, among them the Amanga, Naar and Alhar oilfields.
 
OfD support to South Sudan in 2018 was mainly channelled through the International Monetary Fund (IMF) and civil society organisations.
 
 

Key achievements of programme activities

Increased transparency and accountability

  • Despite challenging circumstances, IMF conducted several off-site capacity development activities focused on areas of monetary policy, the functioning of the Bank of South Sudan, public finance management, revenue administration and tax policy, and statistical capacity.

  • Upper Nile Youth Development Association (UNYDA), a local Norwegian People’s Aid (NPA) partner under the OfD project, raised awareness of the local communities in the oil-producing state of Northern Upper Nile on the provisions of South Sudan’s Petroleum Revenue Management Act and the Petroleum Act. As a result, the community members in Northern Upper Nile are demanding a dialogue between them and the Ministry of Petroleum as well as the members of the State Legislative Assembly. The demands are important steps in the right direction of holding the authorities and oil companies accountable.

  • The NPA’s project enabled civil society organisations to organise into a coalition called ‘South Sudan Civil Society Coalition on Natural Resources’ in 2018. This coalition is advocating for example through print and broadcast media outlets for transparent and accountable management of the petroleum revenues, and for sustainable environmental management. This is an important result as there are no other networks in the country that work on these issues.
Published 02.07.2014
Last updated 28.06.2019