November 21, 2024
Oil production has played a significant role in shaping the economic landscape of many countries, particularly in Africa where oil resources are abundant. One such country is South Sudan – where the Upper Nile State, among other areas, is endowed with substantial oil deposits.
In South Sudan – Africa’s youngest nation, oil production has had a mixed impact on the communities in Upper Nile State. On one hand, it has brought jobs and infrastructure development, improving the standard of living for some residents. However, the majority of the population has not benefited from the oil revenues, leading to inequality and social unrest.
One of the people in the latter category is Angelina Awut (not real name), a resident of Paloch in Upper Nile State. This is one of the areas grappling with the after-effects of an oil spill.
“Our soil has become infertile now because of these oil spills that keep happening from these big oil companies,” Awut narrates.
She explains that she used to harvest about 20 bags of sorghum each year before the oil spills forced her to abandon her farm and start selling milk for survival.
She says her community became unfit for agriculture after crude oil from the China National Petroleum Corporation (CNPC) facility spewed into the environment in August of 2019.
“Every time I remember these oil spills, my heart bleeds and now with the recent flooding, we are going to starve,” she adds.
Oil Spills: Who is to Blame?
One of the major pipelines in Upper Nile State that passes through the pastoral land and the farming community of 33,000 people has been prone to oil spills and rebel militia attacks since the South Sudan civil war.
According to China National Petroleum Corporation, between 2015 up to April 2020, they recorded a series of 21 oil spills in the area.
Though local communities of Upper Nile state blame the oil companies for the loss of the livelihoods, the oil companies attribute most of the leaks to sabotage from local residents and criminal gangs stealing crude oil.
The Chinese oil company (CNPC) which is one of the biggest oil consortia in the country, refuted the allegations from the community members citing that they always meet their obligations on clean-ups and are always available to help the communities whenever there are incidences of oil spillage or leakage.
“CNPC has always and will always live up to its responsibilities,” said Akuein Mayen, CNPC spokesperson in an interview with SSW in 2020.
He further elucidated that the major problem they face is re-pollution.
“After we clean up, the vandals will go back and damage the facility to steal oil without considering the negative impacts on the environment,” he further explained at the time.
Ngor Malual (real name withheld), a community leader of Paloch county, Upper Nile State, however, refutes the statement of the CNPC spokesperson stating that not all oil leakages are as a result of sabotage from the local residents. “It’s not true that all these incidents are a result of sabotage from residents, some are a result of equipment failure,” he says.
More Displacements, Less Action
The discovery of oil in South Sudan dates back to the late 1970s, during the civil war with Sudan. The oil fields in Upper Nile State were a strategic asset in the conflict, leading to a power struggle between the government and rebel groups. After years of negotiation, South Sudan gained independence in 2011. The newfound independence brought hopes of prosperity through the exploitation of oil resources.
South Sudan being one of Africa’s largest oil producing nations, produces an average of three hundred thousand barrels of crude oil per day which accounts for 98% of the country’s foreign exchange earnings.
Oil related activities like geological surveys, excavation and the digging of ponds for polluted water, erection of rigs, digging for laying pipelines and the construction of roads and the airport near Paloch greatly disrupted the life of two thirds (325) out of 476 villages in blocks 3 and 7 in Upper Nile state.
Oil sector related displacement is known to lead to growing economic, social and cultural marginalization of the local people. Most oil fields are located in the territories of the local people and yet they never participate in the distribution of income from the extracted oil.
Further exacerbating the situation in poorly established democracies like South Sudan, is ethnic antagonism or practices against the local people and low efficiency in the institutions of legal protection.
According to the South Sudan Land Act and the Petroleum Act 2012, the government can allocate land to oil corporations for further exploration if the concerned communities are informed and compensated through payment or resettlement. https://mojca.gov.ss/wp-content/uploads/2023/03/Land-Act-2009.pdf
https://mojca.gov.ss/wp-content/uploads/2023/03/Petroleum-Act-2012.pdf
Displacement without proper compensation or resettlement plans and social guarantees is a violation of human rights.
Unfortunately, oil production in developing countries like South Sudan almost never contributes to improving the situation of the local communities. Loss of land leads to loss of basic economic functioning of the whole community.
Are Oil Companies, the Government Doing Enough for the People?
The Chinese National Petroleum Corporation (CNPC), the largest oil investor in South Sudan has been criticized for its close ties with the government and lack of consideration for local communities and the environment. Despite pledges to support sustainable development, CNPC’s actions have often come under scrutiny. The lack of transparency and accountability in the oil industry has made it difficult to obtain accurate data on the extent of pollution, oil-related displacement and its impact on the livelihoods of communities in Upper Nile State.
In a report released by the South Sudan National Audit Chamber, over 50 million US Dollars, part of the 2% and 3% oil revenue shares meant to be paid to the oil producing states were diverted to business entities and individual accounts for reasons unknown to the public 2011-2022.
According to the South Sudan Petroleum Revenue Management Act, 2% of the net oil revenues are supposed to go to the oil producing state while 3% is for development projects in the oil producing communities. https://mop.gov.ss/download/pubs/Petroleum_Revenue_Management_Act.pdf
Marial Dau, an environmental activist, highlights that oil companies are not doing enough for the host communities despite decades of oil exploration in their territories.
“The oil companies have completely destroyed the ecosystem through their operations,” he says.
Dau further stresses that the people’s main sources of livelihood (farming and pastoralism) have been ruined without providing these communities with alternatives; leaving residents with no choice but to resort to criminal activities for survival.
“That’s why these incidents of oil thefts, pipeline vandalization and illegal refineries will always continue in the Melut Basin,” he adds.
Dau stresses that only very few South Sudanese are benefitting from millions of dollars that the oil sector makes daily and yet the majority of South Sudanese citizens wallow in poverty struggling to survive on less than two dollars per day.
President Salva Kiir Mayardit, the South Sudan head of state, has on several occasions been accused of using oil revenues to consolidate his power and suppress dissent by both the international community and the citizens. Despite promises of wealth distribution and development, many communities in Upper Nile State continue to live in poverty, with little benefit from the oil production.
The environmental impact of oil production has also been a cause for concern, with reports of oil spills contaminating water sources and farmland. This has led to health problems among the local population, further exacerbating poverty and vulnerability. https://www.documentcloud.org/documents/6774908-SS-Environment-Assessment.
Expounding on the issues for the oil sector in South Sudan is the lack of competent authorities to set and implement standards and practices that protect the rights of people and the natural environment and to repair the damage done.
Limited access to affected areas and communities, political instability and corruption have hindered efforts to address the root causes of oil pollution and hold responsible parties accountable for their actions.
For a better South Sudan, it is essential for key figures in the oil industry, government, and civil society to work together towards a more transparent, accountable, and sustainable oil sector that benefits all stakeholders.
The future of oil production in Upper Nile State remains uncertain. The ongoing conflict in the region has disrupted operations and hindered investment, leading to a decline in production and revenues. However, with peace efforts underway and potential new oil discoveries on the horizon, there is hope for a more sustainable and equitable oil industry in South Sudan.