Petroleum Act, 2012.

This Act, comprising 100 Articles divided into XXI Chapters, aims to (i) provide a regulatory framework for the development and management of petroleum activities and other ancillary matters related to petroleum activities; (ii) establish a National Petroleum and Gas Commission, and applies to all petroleum activities within the territory of the Republic of South Sudan, including activities in, under, and upon its land. The principles and objectives for the development and management of petroleum in South Sudan, as per Article 7, include (i) ownership by the people of South Sudan and management by the Government; (ii) contribution to economic prosperity and human development; (iii) ethical, efficient, transparent, and accountable management based on sustainability; (iv) equitable distribution of petroleum-derived revenues among the people; (v) maximizing the value of petroleum resources for current and future generations; (vi) utilizing best international practices and technology to minimize environmental damage; (vii) ensuring an adequate domestic supply of petroleum for the people's needs; (viii) promoting fair competition to enhance productivity and efficiency in the petroleum sector. Article 8 establishes the following basic principles: the ownership of petroleum in South Sudan is vested in the government, which is responsible for its development and management for the benefit of the people, and petroleum activities can only be conducted with the appropriate license or agreement.
Chapter III establishes the National Petroleum and Gas Commission, which has several key powers and functions, including providing policy direction for petroleum resources, supervising petroleum resource management, approving petroleum agreements, and promoting cooperation among various stakeholders. The Ministry is responsible for implementing the Commission's policies, which involve developing strategies, negotiating agreements, managing resources, enhancing technical capacity, and more. Additionally, Chapter V introduces the National Petroleum and Gas Corporation, which operates on behalf of the Government in the petroleum and gas sector, follows specific regulations, represents the Government in consortia, and provides transparency through international standards. The Board of Directors for the Corporation is appointed by the President. Chapter VI, which addresses land management for petroleum activities in South Sudan, details the following procedures (i) graticulation: the land of South Sudan will be divided into numbered sections and the Ministry will prepare a reference map displaying these blocks and make it accessible to interested parties; (ii) opening of areas for petroleum activities after conducting a strategic environmental assessment; (iii) the Council of Ministers, in consultation with the Ministry, may close an area or a portion of it, but only if no existing petroleum agreement covers that specific area or part of it.
Among the main provisions, the Act (i) stipulates the procedures and requirements for granting licences and agreements for petroleum activities, including reconnaissance, exploration, development, production, transportation, treatment and storage of petroleum; (ii) defines the rights and obligations of the licensees and contractors, including the National Petroleum and Gas Corporation, and the terms and conditions for assignment, transfer of assets, decommissioning and cessation of petroleum activities; (iii) outlines the health, safety and environmental standards and measures for petroleum activities, including the prevention and management of pollution, the conduct of environmental and social impact assessments and the implementation of environmental management plans; (iv) promotes the procurement of national goods and services, the employment and training of South Sudanese nationals, and the transfer of knowledge and technology in the petroleum sector; (v) specifies the fiscal provisions for petroleum activities, including the fees, royalties, bonuses, taxes and customs, and the production sharing arrangements between the Government and the contractors; (vi) regulates the data and information management, record-keeping, reporting and public access to information related to petroleum activities, and requires the disclosure and publication of payments and contracts; (vii) provides for the competence and disclosure of interests of the personnel involved in the petroleum sector and the power of the Ministry to issue regulations for the implementation of the Act.