The Petroleum Industry in Unity State of South Sudan: An Examination of the Legal Regime

TABLE OF CONTENTS

Declaration .......................................................................................................... ii

Approval by supervisor .................................................................................. iii

Dedication ........................................................................................................... iv

Aknowlegdements .............................................................................................. v

List of Accronyms j Abbreviations .............................................................. vi

Abstract ................................................................................................................. x

CHAPTER ONE: INTRODUCTION TO THE STUDY .............................. I

1.0 Introduction ............................................................................................. 1

1.1 Background to the study ..................................................................... 1

1.2 Statement of the Problem .................................................................... 6

1.3 Purpose of the study ............................................................................. 7

1.4 Specific objectives .................................................................................. 7

1. 5 Research Questions .............................................................................. 7

1.6 Scope of the Study ................................................................................. 8

1.6.1 Conceptual scope ................................................................................... 8

1.6.2 Geographical scope ................................................................................ 8

1.6.3 Time scope .............................................................................................. 8

1.7 The Significance of the Study ............................................................ 9

1.8 Literature Review ................................................................................. 10

1.8.1 Pre and Post-independence institutions in South Sudan ...... 10

1.8.2 Oil revenues and government spending in South Sudan ....... 14

1. 9 Methodology ........................................................................................... 16

CHAPTER TWO: CONCEPTS AND TERMINOLOGIES AND

THEORIES ......................................................................................................... 18

2.0 Introduction ........................................................................................... 18

2.1 Concepts and Terminologies ............................................................ 18

2.2 Theories of Petroleum ......................................................................... 32

CHAPTER THREE: THE PETROLEUM INDUSTRY IN SOUTH

SUDAN ................................................................................................................. 35

3.0 Introduction ........................................................................................... 35

3.1 Major players in the South Sudan Petroleum industry .......... 37

IX

3.3 Community Concerns in Unity State ........................................... .40

CHAPTER FOUR: LEGISLATIONS AND LEGAL FRAMEWORK .... 43

4.0 Introduction ......................................................................................... 43

4.1 Legal framework for the management of Petroleum industry

in Unity State, South Sudan ....................................................................... .43

4.2 Major issues in the Petroleum Law and legislations .............. .47

4.2.1 Opening of areas ................................................................................. .47

4.2.2 Tendering Procedure and Qualification requirements ............ .48

4.2.3 Incorporation and organization requirements ........................... .48

4.2.4 Exploration and Production sharing agreements ..................... .49

4.2.5 Exploration Drilling ............................................................................. 52

4.2.6 Development and Production ........................................................... 53

4.2.7 Production permits .............................................................................. 55

4.3 Community land use legislation in Unity State ......................... 58

4.4 Environmental issues in petroleum sector in Unity state ...... 59

4.5 Critique of the current legislative process ................................... 60

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS ................................................................................... 65

5.0 Introduction ................................................................................................ 65

5.1 Summary offindings ............................................................................... 65

5.2 Conclusions ................................................................................................ 66

5.4 Areas for further research ..................................................................... 72

References; ....................................................................................................... 73

Appendices ........................................................................................................ 79

Appendix I: Questionnaires for selected respondents .......................... 79

Appendix II: Interview Guide for civil society and localleaders ........ 83

Appendix III: Proposed budget for proposal and report writing ........ 84

Appendix IV: Time Frame/Work plan ........................................................ 85

ABSTRACT This dissertation is entitled "The petroleum industry in Unity state, South Sudan". The study was carried out based on three objectives, that is; to examine the current laws relating to the regulation of the petroleum industry in Unity state, south Sudan; to analyze the effectiveness and applicability of the current legal framework for the management of the petroleum industry in Unity state, south Sudan; and to examine the critique and feedback from civil society, NGOs and other stakeholders on the current laws and draft bills in the management of the petroleum industry in Unity state, south Sudan. The study was in form of a case study, to make a survey that can be representative of the entire country. The study sample comprised of 140 respondents, among which were legislators, ministry officials, members of the civil society and local leaders in Unity state, South Sudan, chosen using Purposive sampling method. Questionnaires and interviews were used m collecting data. The collected data was analyzed qualitatively. The findings showed that there was a strong legal regime for governing the petroleum industry in Unity state vested in the South Sudan Transitional constitution - 2011. However, the provisions of the Transitional constitution do not however, fully address all the contingencies in the petroleum industry. Thus the XI South Sudan Legislative Assembly is pushing for the enactment of the petroleum law to cover all legal aspects in the industry. The researcher concluded that the current legal regime for the management of the petroleum industry in South Sudan is insufficient and requires a speedy process to enact the Petroleum law, whose provisions can adequately cover the industry in the legal sense.