Page 6 - DMEA Week 16 2021

DMEA POLICY DMEA

President’s death may

strain Chad’s oil sector

AFRICA CHAD’S oil sector may be headed for a rough has said that the younger Déby will remain at the
patch, following the unexpected death of Idriss head of an interim government for the next 18
Déby, the country’s president. months, until stability is restored.
Déby died earlier this week, shortly after a Some observers have argued that these events
visit to a site where the Chadian armed forces are effectively a coup, since they bypass official
were trying to contain an attack by the Front for Chadian political structures. If so, they may draw
Change and Concord in Chad (known locally as a sharp response from the Chadian political
FACT), a rebel group that is active in the north- opposition and stymie efforts by N’Djamena to
ern part of the country and in southern Libya. rein in the FACT attacks.
He was reportedly injured on April 18 and then If Mahamat Déby remains in power (with
evacuated to N’Djamena, the capital city, before assistance and backing from MTC), he may
succumbing to his wounds on April 20. seek to derail the Chadian political opposition’s
Representatives of the armed forces have effort to determine whether the late president
talked up the idea that the president died heroi- mismanaged oil revenues. This is a touchy issue,
cally, while standing up for the territorial integ- since oil earnings account for about 90% of all
rity of the country on the battlefield. Other budget funds.
sources said, though, that he had been killed They may also have an impact on efforts by
along with four generals while holding talks with N’Djamena to invest in the country’s oil produc-
members of FACT. tion capacity. Chad saw its crude output peak at
The president died shortly after securing about 170,000 barrels per day (bpd) in 2005 and
his election to a sixth term in office. Following then fall to around 80,000 bpd in 2013. Yields
his death, a military transitional council seized have recovered somewhat and are now averaging
power and named Déby’s son, Mahamat Idriss 140,000-150,000 bpd, but they have yet to move
Déby Itno, as the interim president. The council back to their peak.™

South Sudan calls tender for oil sector audit

AFRICA SOUTH Sudan’s Ministry of Petroleum has based on facts,” he told reporters. “We will make
launched a tender for an environmental audit of the report public and provide details as to why
the country’s hydrocarbon sector. we selected the specific company in order to be
The ministry opened the first round of bid- transparent.”
ding for the audit project earlier this week, at an He also highlighted the South Sudanese gov-
event in Juba. It said during a presentation of ernment’s effort to secure passage for new laws
the tender that the eventual winner of the con- and regulations that gave local companies and
tract would be responsible for making accurate workers the opportunity to contribute to oil
assessments of South Sudan’s crude oil and gas development. This campaign calls for the estab-
condensate production levels, as well as the size lishment of a single human resource policy for
of the country’s reserves. The contractor will also both South Sudanese employees and expats,
have to report on investment and revenue flows he said. This application of this unified policy
– and make recommendations on proposed should help ensure that local workers and com-
solutions to the fiscal, regulatory and technical panies have access to new opportunities, he said.
challenges facing stakeholders in the hydrocar- “We have also come up with local content
bon industry, it stated. laws to protect the local people and companies.
As of press time, the ministry had not made In the procurement department, opportunities
all details of the bidding process public. How- should be available for local companies, and
ever, Energy Minister Puot Kang Chol said in a they should have the priority in the sector,” he
press conference after the event in Juba that the told reporters at the press conference. “We are
winner of the audit contract would be expected not chasing foreigners away,” he added. “We are
to formulate a report that was transparent, as simply prioritising local participation.”
well as accurate. Downstream MEA (DMEA) understands
“When the report does come out, whichever from that UK-based Wood Mackenzie is among
company we select must ensure that the report is those to have pitched for the work.™

P6 www. NEWSBASE .com Week 16 22•April•2021