Page 11 - AfrOil Week 09 2021

AfrOil POLICY AfrOil

DPOC accounts for around 75% of South Sudan’s oil production (Image: Nilepet)

Equity in this consortium is divided between received information that DPOC has not made
operator China National Petroleum Corp. payments to the South Sudan Central Bank.”
(CNPC), with 41%, and its partners Petronas This is not the first time DPOC has been
(Malaysia), with 40%; Nilepet, with 8%; Sino- called upon to answer questions about corrup-
pec (China), with 6%; and Tri-Ocean Energy tion. Observers have accused the consortium of
(Egypt), with 5%. providing financing to militia groups that cause
According to Agence Ecofin, the UN inves- environmental damages and commit atrocities.
tigators spelled out their concerns in a letter to DPOC is developing two licence areas in
DPOC. “The panel is seeking clarification on the Melut Basin known as Block 3 and Block 7.
DPOC’s financial transactions with the govern- These two blocks, both of which are in Upper
ment and Nilepet,” the letter said. “The panel Nile State, account for about three quarters of
is requesting detailed responses because it has South Sudan’s total oil production. ™

Libya’s NOC wins Ras Lanuf

refinery arbitration case

LIBYA LIBYA’S National Oil Corp. (NOC) this week LERCO to pay NOC more than $115mn plus
said that a Paris court of appeal had upheld an interest, which amounted to $132mn as of Feb-
arbitration ruling against Libyan Emirates Oil ruary 28.
Refining Co. (LERCO) pertaining to the closure The court also confirmed LERCO’s obliga-
of Ras Lanuf refinery in 2013. tions under a take-or-pay contract and ordered
LERCO, which is a joint venture between the company to pay $120,000 in costs.
NOC and a subsidiary of the UAE’s Al Ghurair NOC chairman Mustafa Sanalla said: “NOC
Group, operates the 200,000 barrel per day is the trusted guardian of the Libyan oil wealth.
(bpd) facility. The appeal concerns to an arbitra- It has not and will never hesitate to take the steps
tion ruling in 2018 relating to a complex dispute necessary to protect and preserve that wealth.”.
between the parties which led to the refinery The company added it would “take all neces-
being closed. sary steps to enforce its rights under the award
Attempts to restart the plant faltered and and the court’s decision.”
plans to invest $2bn in the refinery had to be At the time of the 2018 ruling, NOC said that
shelved, leading to disagreements over the if the case had gone in LERCO’s favour, and its
financial management of the plant. claims, including damages of $812mn, had been
Via social media, NOC said that the Paris upheld, potential losses to NOC would have
court had upheld the ruling that instructed been around $10bn.

Week 09 03•March•2021 www. NEWSBASE .com P11