Unity State promises increased oil production after independence
Concerned over the decline of oil production in Unity State’s oil fields, Suon Xianshing, president of the Greater Nile Petroleum Operation Company (GNPOC), visited Unity State Governor Taban Deng to discuss the company’s oil strategy following Southern Sudan’s independence, which takes effect on 9 July.
Governor Taban Deng during a GNPOC celebration earlier this year.Governor Taban Deng assured Xianshing that his state was ready to support an increase in oil production, saying security in the state is "back to normal" after rebel activities in the past month.
He made this statement, however, before the most recent attacks on Unity State, which have been attributed to the northern Sudan Armed Forces (SAF).
Deng sought to assure Xianshing and his delegation that it is in Southern Sudan’s interest to increase oil production so the government has more financial resources to fund public services such as education, health care and roads.
"We have promised that on our end, we can help the increase of oil production," Governor Deng said, "While they work hard to support sub-contractors working in Unity State," especially in the supply branch.
The state-owned Chinese National Petroleum Corporation is the primarily stakeholder in GNPOC, which runs a number of oil fields north of Bentiu. Sudan, India, and Malaysia are also junior partners in the consortium.
"GNPOC wants to build strong relations with both northern and southern officials in a common goal to increase productivity."
Xianshing promised to hire more Southern Sudanese when the company moves its headquarters to Juba.
Although about 80% of Sudan’s oil lies in the south, the oil companies worked closely with the Khartoum government during the war. Southern Sudanese who lost homes or family members during violent campaigns to clear land for oil exploration have not yet received any compensation, even though it was stipulated in the Comprehensive Peace Agreement (CPA) of 2005.
During most of the implementation period of the CPA, the oil companies failed to build strong ties with the southern government. Now, with independence less than a month away, they are obliged to forge friendlier ties with Juba if they wish to keep doing business in the emerging nation.
