*As govt pre-approves 59 companies for oil lifting
THE Republic of South Sudan, RSS, has pre-approved 59 oil and gas companies, including the Lagos-based Sahara Energy, for lifting its crude oil.
Other companies included, Addax Energy, AsconTimpet, Augusta Energy, Chi’an Wei Ltd, China Oil, CNOOC, Concord Energy, Glencore, Gunvor, Investsouth (Triton Global Petroleum), Investsouth Co. Ltd, Kepu, Kernel Oil (Suisse Ltd), LENKOR, LOTCO, Mena Energy, Mercuria, Mitsubishi, Money Maker Management, Nabta General Trading, Nasdec General, Petronas, Petro Diamond, Royal Energy, Safadi Group, Sahara Energy, Serha Oil, Shell, SK Energy, SOCCAR, Southex, Total and Toyota Tsusho.
They also included, Trafigura, Tri Ocean, Trinity Energy, Unipec, Vitol, Zenhuaoil Co. Ltd, NIMEX Petroleum, Hyde Energy Ltd, Euronova Energies SA, Kepu, Kernel Oil Suisse SA, Nabta General Trading, Ocean Front, Gulf Petroleum, Petraco Oil Company, Adaxco, Strong Petrochemical Ltd, Litasco, Cathay Petroleum Int. Ltd, Zenrock Commodities Trading Pte Ltd, Nimr Int. LLC, CTP Oil Trading LCC, Petro Holland Ltd, ZACOSIA Petrochemical Trading, TALEVERAS Petroleum Trading BV and Continental Energy.
In its latest report sent to iBrandTV, the Ministry of Petroleum, RSS, stated: “The list of customers has been pre-approved by the Marketing Team to be considered as potential buyers of Republic of Southern Sudan, RSS crude oil and can be included in the monthly cargo tender.
“It should be noted that with the assistance of the Central Bank of South Sudan, a financial assessment of the required level of financial security has been established for each company, which appears on the right side column.
“The MoP marketing effort for the period of June 2018 to May 2019 continued to be stronger given the extremely difficult global crude oil environment. With supply out-stripping demand and the dramatic fall in prices during the period, the marketing group has clearly demonstrated the capability of the Ministry of Petroleum staff and the Marketing Team to successfully sell the country’s entitlement share of crude oil at the best prices possible.
“The Ministry of Petroleum will continue to work hard to monetize our crude oil into the international marketplace at attractive price formulas, contract terms, and in a professional and transparent manner.
“The Ministry will also continue to ensure that controls are in place to provide assurance that all oil revenues are documented and that all payments made by buyers are fully accounted for.
“MoP will continue to develop its marketing expertise and add new talent to its work force to address current challenges, help identify marketing opportunities and improve prices. The identification of new buyers and new markets, and the analysis of market behaviour and crude oil prices are just some of the areas that will be subject to future development.”
Unlike some other nations, the Republic of Southern Sudan has disclosed 11 factors for the selection of oil companies to lift or buy its crude oil.
The Ministry of Petroleum disclosed that the considerations include pre-approval, transparency, conformity, commitment, selling priority, price, security, diversification, target buyers, negotiation and payment.
The Ministry stated: “In addition to the marketing activities listed above related to the direct selling of crude oil, MoP is continuing to emphasize transparency in all of its business practices. For example, this is the fifth annual edition of the marketing report, which provides comprehensive information to stakeholders, interested parties and the public on the crude oil marketing activities of the Ministry Petroleum.
“The Petroleum Revenue Management Act is strongly supported by the MoP and provides further guidance on crude oil revenue management as well as additional transparency under new reporting obligations.
“The implementation of the Extractive Industries Transparency Initiative (EITI) has also been strongly supported by the Ministry and, although progress to date has been limited due to the capacity constraints of the Ministry as well as the need to address other urgent priorities, the MoP and the government of South Sudan continue to remain committed to its effective implementation.“
It added: “The Ministry has also initiated the practice of providing periodic press releases which outline recent sales and production volumes, crude oil revenues, tariff and assistance fee payments to Sudan as well as other relevant marketing data.”