Page 11 - AfrOil Week 19 2022

AfrOil POLICY AfrOil

The government sees the grant as a short-term rise in world oil prices over the last few months.
means of reducing the cost of petroleum prod- The price of Brent crude, the main European
ucts before the end of the current fiscal year, benchmark, has climbed by about 35% since the
which will come to a close on June 30, but is beginning of this year. ™
looking into other solutions for the longer term,
he explained.
More specifically, he said, Tanzania is work-
ing to secure loans from the International Mon-
etary Fund (IMF) and the World Bank to soften
the impact of rising fuel prices. The country is
in negotiations with these international finan-
cial institutions (IFIs) on a credit deal, he stated,
without elaborating.
Tanzania, like many other African states,
is heavily dependent on imported petroleum
products. As such, it has been hard hit by the Energy Minister Makamba (Photo: Twitter/@JMakamba)

South Sudan plans slow-motion

nationalisation of oil industry

SOUTH SUDAN AWOW Daniel Chuang, the undersecretary period of five years as existing contracts expire,
of South Sudan’s Ministry of Petroleum, said he stated.
on Friday (May 6) that Nilepet, the national He also said that Nilepet would work to
oil company (NOC), had begun the process ensure that departing investors engaged in skills
of taking over the projects now led by foreign and knowledge transfer. “Nationalisation will
investors. be done through training where we are able,”
Speaking to journalists in the capital city he told reporters. “In areas where we don’t have
Juba, Chuang said South Sudan wanted to gain expertise, we will have to use foreigners for a
more control over its own oil industry so that it very short period of time” until such skills can
could collect a larger share of the revenue that be acquired, he commented.
the sector generates, even if output levels sink. Chuang stressed that South Sudan would
This takeover will be a gradual process, not an have to continue consulting foreign experts to
abrupt seizure, and will be carried out over a some extent.

Foreign companies are leading oil development in South Sudan (Image: South Sudan Ministry of Petroleum)

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