By Charles Lotara, SSMJ Juba, Thursday (September 12, 2024) – On August 7, 2024, Malaysian oil giant Petronas announced its withdrawal from Blocks 3 and 7 in the Paloch oilfield, located in Melut County of Upper Nile State, South Sudan. After nearly four decades of operation, the company's departure amid the conflict in neighboring Sudan has sparked concerns about environmental accountability. Despite citing a shift in South Sudan's investment landscape, Petronas left behind a legacy of un
By Charles Lotara, SSMJ
Juba, Thursday (September 12, 2024) – On August 7, 2024, Malaysian oil giant Petronas announced its withdrawal from Blocks 3 and 7 in the Paloch oilfield, located in Melut County of Upper Nile State, South Sudan.
After nearly four decades of operation, the company's departure amid the conflict in neighboring Sudan has sparked concerns about environmental accountability.
Despite citing a shift in South Sudan's investment landscape, Petronas left behind a legacy of unresolved environmental damage, becoming a prime example of oil companies evading responsibility for pollution.
Dhieu Mathok, South Sudan’s Minister of Investment, referred to the situation as a "headache" during an interview with BNN Bloomberg , emphasizing the challenges in holding departing companies accountable for their environmental obligations.
"There are a lot of issues around this, and they have to be addressed. This is one of the areas where there is a headache between the government and investment companies," Mathok explained.
He highlighted the human toll, noting numerous cases of deformity among children in the oil-producing areas.
"It is not just Petronas alone. We have many cases of deformity—children being born without some body parts," he added.
Hon. Aisha Abbas, a lawmaker representing Melut County, echoed Mathok's concerns by bringing up the issue in parliament.
She questioned who would be held responsible for the environmental damage caused to oil-producing communities in the absence of Petronas.
"If the environmental audit report comes out negative, who will be responsible for our suffering in the oil-producing areas of Melut, Unity, and Panriang?" asked the legislator.
Oil-producing communities have long expressed grievances over the devastating health effects of petroleum pollution, which include diseases, birth defects, infertility, and miscarriages.
A 2021 study by the Sudd Institute, titled Sitting on a Time Bomb: Oil Pollution Impacts on Human Health in Melut County, South Sudan , reported 13 cases of severe birth defects.
These included spinal bifida, facial deformities, limb abnormalities, and growth retardation, with the numbers rising sharply in the years since.
The study also pointed out the perilous proximity of many households to oil wells, facilities, and a large lake of toxic produced water. Contaminated water, food, and livestock grazing in the oilfields expose these communities to harmful chemicals.
"Community drinking water, held in containers on dusty roadsides by Dar Petroleum Operating Company (DPOC), and chemical containers used by community members to hold water are likely sources of human exposure to toxic pollutants," the report stated.
A separate study by another environmental advocacy group, Sign of Hope, revealed that between 1999 and 2020, oil companies in South Sudan released 8.3 million tons of salt, 7.9 billion liters of well-drilling fluids (including hazardous chemicals like lead, nickel, and cadmium), and 6 million liters of crude oil into the environment. These staggering numbers highlight the scale of pollution in South Sudan's oil-producing regions.
As frustration grows among affected communities, campaigners warn that ignoring the problem could lead to a larger crisis that may cripple petroleum industry operations in the region.
Civil society groups, including the Sudd Institute, have recommended a comprehensive environmental and social assessment to determine the full extent of the damage and establish compensation and remediation costs.
However, bureaucratic delays have hindered efforts to hold oil companies accountable. South Sudan’s Minister of Environment and Forestry, Josephine Napwon, informed parliament in May 2024 that an environmental audit report on the oilfields, commissioned in 2022, remains incomplete due to the government's failure to pay the companies contracted for the assessment.
The three firms—Panloy, Envage Associates, and SGS Company Limited—have withheld their findings until their dues are settled, leaving the oil companies beyond the reach of legal action without documented evidence of environmental damage.
This delay in resolving financial obligations and releasing the audit report underscores the difficulties in holding oil firms accountable, leaving communities vulnerable and without recourse as environmental damage continues unchecked.