South Sudan: Questions over ‘oil for arms’


Issue 286 - 11 Oct 2014 | 2 minute read

In August, a 600,000-barrel oil cargo for September lifting was awarded to China International United Petroleum & Chemicals (Unipec). But, according to an oil industry source, Unipec was invoiced to pay not the government of South Sudan, but Chinese arms manufacturer China North Industries Group Corporation (Norinco). This arrangement has not been made before, but there is precedent for a direct contract award by the Ministry of Petroleum and Mines to Norinco: in August 2013, the government sold a 600,000-barrel oil contract to the company.

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