DA demands detailed information of South Africa’s cloak-and-dagger agreement with South Sudan

1 October 2019

Despite a Promotion of Access to Information Act (PAIA) request from the Democratic Alliance (DA), and various emails and parliamentary questions, South Africa is no closer to learning what was contained in the Exploration and Production Sharing Agreement signed with South Sudan by then Minister of Energy, Jeff Radebe, just two days before the National and Provincial Elections earlier this year.

What we do know is this: Minister Radebe jetted off to South Sudan on 6 May 2019, to sign the agreement, citing the upcoming elections as the need for the urgency. The implementing agent from South Africa’s perspective is the Strategic Fuel Fund – a state-owned entity with a questionable track record when it comes to financial management and the control of strategic assets (specifically, South Africa’s strategic fuel reserves). The “facilitator” was a South Sudanese company called Centurion Law Group, headed up by one Njock Ajuk Eyong, also known as NJ Ayuk and Njoy Ayuk Eyong, allegedly a convicted fraudster in the USA, who were paid in the region of $20 million US dollars for their services.

We also know that Block B2, which is the area covered by the deal, was abandoned by Total at the height of the Sudanese civil war, and they made no attempt to recover it afterwards. In addition, it is unproven territory – meaning that millions must be spent on prospecting and developing the oil reserves (if any!) Reports suggest that the cost of the exploration and development of this block could run to $1 billion. Regardless, it is not a short term project, and it is likely to be at least 10 years before South Africa sees a return from this development (again, if any).

At a Mineral Resources and Energy portfolio committee meeting just days before she tragically passed away, former Deputy Minister Bavelile Hlongwa committed the department to openness and transparency with parliament. Sadly, the department has chosen obfuscation and misdirection instead.

The Democratic Alliance demands that Minister Mantashe take the country into his confidence and release the agreement with South Sudan. We need to know what we have committed to, and why this investment is a better deal than investing in prospecting, exploration and development of our local oil and gas resources.

Issued by Kevin Mileham, Shadow Minister of Mineral Resources and Energy, 1 October 2019