CHAPTER IV: RESOURCE, ECONOMIC AND FINANCIAL MANAGEMENT

4.8.Resource Management
4.8.1. Oil /Petroleum

4.8.1.1. The RTGoNU, through the Ministries of Petroleum and Finance and Planning, shall implement the provisions of the Petroleum Revenue Management Act (PRMA), 2012, within three (3) months
of the Transitional Period.

4.8.1.2.The RTGoNU through the Minister of Finance and Planning, the Minister of Petroleum, and the Governor of the Bank of South Sudan (BoSS), shall mandate the closure of any petroleum revenue accounts other than those approved by law within three (3) months of the start of the Transition.

4.8.1.3.Within six (6) months of the Transition all loans and contracts collateralized or guaranteed against oil shall be identified, checked and recorded for the purposes of transparency and accountability.

4.8.1.4. Current employment in the oil sector shall be reviewed given that employment in this sector has not been based on merit and competence, but largely on ethnic, political and regional considerations.

4.8.1.5.Review, vet and take corrective measures against all contracts awarded to service companies operating in the oil fields. Any companies found to be non-performing shall have their contracts terminated and new contracts awarded through an open public tender process by the Ministry of Petroleum in accordance with guidelines set by law.

4.8.1.6.Priority in contracting Service Companies shall be given to qualified nationals of South Sudan. The companies awarded such contracts shall ensure that local communities are given priority in
employment;

4.8.1.7.Oil marketing system including future sales shall be open, transparent and competitive; and any fraudulent dealings shall be checked and severely punished.

4.8.1.8.Awards of oil concessions shall be conducted in accordance with the provisions of the revised Petroleum legislation. The National Petroleum and Gas Commission shall play a key role in processing oil contracts. The Commission shall be chaired by the President and deputized by the First Vice President.

4.8.1.9.The framework for sharing wealth from the extraction of natural resources should balance the needs of service delivery and reconstruction of the producing States.

4.8.1.10. All oil revenue including surface rentals, training fees, bonuses, etc., shall be remitted to the oil account in BoSS and withdrawals shall be in accordance with the law and procedures of the Ministry of Finance and Economic Planning.

4.8.1.11. The oil revenue funds including the Oil Stabilization Account (OSA) and Future Generations’ Fund (FGF) must be prudently managed in accordance with the applicable legislation, in particular the revised Petroleum Act and the revised Public
Finance Management and Accountability Act.

4.8.1.12. Communities in whose areas development of subterranean natural
resources occur have the right to participate through their respective States in decision making and negotiation of contracts for the exploration, development, production and use of those resources.

4.8.1.13. Persons enjoying rights to land are entitled to compensation on equitable terms arising from acquisition or development of land for the extraction of subterranean natural resources from the area in which they have rights.

4.8.1.14. Without prejudice to the foregoing paragraphs, the RTGoNU shall:

4.8.1.14.1. ensure transparent management of the oil industry and efficient and equitable distribution of oil wealth for the
welfare of the people and sustainable development of the country in strict adherence to provisions of the
revised Petroleum Act, 2012 and the revised Mining Act, 2012;

4.8.1.14.2. criminalize depositing or diverting any petroleum
revenue into any account other than the Petroleum Revenue Account at the BoSS, including concession cancellation penalties for non-compliance by concessionaires;

4.8.1.14.3. empower the appropriate levels of government to develop, including policies on national and local content, and manage in consultation with the relevant communities, the various stages of oil production within the overall framework for the management of petroleum development;

4.8.1.14.4. ensure strict adherence to provisions of the revised Petroleum Act, 2012, and the Mining Act, 2012;

4.8.1.14.5. carry out, within six (6) months of the Transitional Period, an urgent audit of the Petroleum Sector and empower the National Petroleum and Gas Commission
to oversee negotiations with oil companies as well as the award of concessions and licenses;

4.8.1.14.6. review the Petroleum Act, 2012 to broaden the mandate and composition of the National Petroleum and Gas Commission;

4.8.1.14.7. expedite the operationalization of the FGF and Oil Revenue Stabilization Account that shall manage oil price volatility;

4.8.1.14.8. ensure that records of payments made to the oil producing states shall be regularly published by the Ministry of Finance and Planning for public scrutiny
and accountability;

4.8.1.14.9. review and audit the previous allocation and transfer of the 2% and 3% made to oil producing States since
2011;

4.8.1.14.10.review and audit all oil revenues due to the National Government and their allocation in the budget since
2011;

4.8.1.14.11. expedite the process of joining the Extractive Industries Transparency Initiative (EITI) to enhance accountability in the management of the petroleum and mining industry;

4.8.1.14.12.consult persons and communities enjoying rights to land and their views shall duly be taken into account
regarding decisions to develop subterranean natural resources from the area in which they have rights, and shall also share in the benefits of the development;

4.8.1.14.13. develop national competence and capacity (training of engineers and others) to enable it to derive maximum
benefit from its oil resources. In this regard, there shall be a competent and enterprising National Oil Company as well as distribution outlets;

4.8.1.14.14.review and transform the national oil company - Nile Petroleum Corporation (NPC) - and the National
Petroleum and Gas Commission (NPGC) and
empower them to exercise their responsibilities as stated in the Amended Constitution and law;

4.8.1.14.15. ensure efficient production and environmentally friendly extraction of natural resources, development of
oil producing areas, capacity building and local content strategy, fairness in employment in the medium and long-term indigenization of the workforce;

4.8.1.14.16. honor all national and international commitments, including agreements with the Republic of Sudan on
oil / petroleum agreements in accordance with the law.