South Sudan should issue a moratorium on all new oil sector contracts and call a halt to all contract renegotiations until peace and the rule of law are restored in the country, human rights group Global Witness said in a report this week.
South Sudan is in the midst of a violent crisis, and is experiencing widespread instability, with the country’s oil resources a central focus of the violence.
“Revenues from the sector have been diverted away from development and towards military spending [and] the conflict has undermined democratic structures, heightening the risk of corruption,” Global Witness said.
This, it said, has created an “extremely unstable investment environment” that is likely to dissuade the most responsible companies and the most favorable deals.
Source: Platts, 2014