Decommissioning From Licensed Blocks: Investigating the Legal Conformity of Petronas Carigali Nile Ltd Farming Out and Decommissioning From South Sudanese Oilfields
Loading...
Date
2024-05-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
The study has comprehensively investigated legal violations of Petronas Carigali Nile Ltd during farming out and decommissioning from South Sudanese oilfields. The study tested four objectives: to understand the origin and meaning of decommissioning in oil and gas industry, to assess the legal violations of Petronas Carigali Nile Ltd farming out and decommissioning from South Sudanese oilfield, to determine the types of residual liabilities and to appraise the responsibility of residual liabilities. The study used a conceptual framework adopted from Shero, 2020 to explain the dependent variable: decommissioning from licensed blocks and independent variables such as legal violations of Petronas Carigali Nile Ltd, types of residual liabilities and responsibility of these liabilities.
The four study objectives were subjected to stringent empirical literature review and the gaps in the literature were filled through fieldwork. During field research, research tools and instruments such as questionnaires and interview guides/schedules were deployed with a target population of 60 people that was later determined via Yamane’s formula to end up with a sample size of 52 respondents. The 52 sample was chosen persuasively and was clustered amongst the senior staff of Ministry of Petroleum (MOP), Nile Petroleum Corporation (NILEPET), Dar Petroleum Operating Company (DPOC), Sudd Petroleum Operating Company (SPOC) and Greater Pioneer Operating Company (GPOC).
The study findings’ indicate that Petronas Carigali Nile Ltd has violated sections 12, 22, 23, 24, 41 & 42 of Petroleum Act 2012. Various types of liabilities such as cost recovery audit, environmental audit, petroleum taxes, surface rentals and cash calls should be taken care off by Petronas Carigali Nile Ltd or by a company that farms into its shares. While the study concludes that Petronas Carigali Nile Ltd did not intend to decommission its facilities from the oilfields but to farm out its shares, the study recommends that the Ministry of Petroleum should be held responsible for all the legal violations Petronas Carigali Nile Ltd have committed in South Sudan without any action. Whether Savannah Energy Ltd farms into Petronas Carigali Nile Ltd shares or not, consequences should be rolled out for such violations so that no any other IOC can do it again in this oil and gas world.
Description
This is a dissertation