JUBA, March 22 (Reuters) - U.S. sanctions on 15 SouthSudanese oil operators will work against efforts to restorepeace and stability in the nation, the government said onThursday.
The sanctions, which were announced on Wednesday, willrequire companies and government bodies to apply for speciallicences to do business in the United States, an action designedto increase pressure on President Salva Kiir to end theconflict and humanitarian crisis in South Sudan.
"These measures are viewed by the Ministry of Petroleum ascounterproductive to the shared mission of the Republic of SouthSudan's and the United States' governments to bring peace andstability to South Sudan," the ministry said in a statement.
It pledged to work with the U.S. Department of Commerce "toremove these restrictions and resume normal relations with theU.S.".
South Sudan has been torn by civil war since 2013 whenfighting erupted between troops loyal to Kiir and those loyal tothen-Vice President Riek Machar. The conflict has claimed tensof thousands of lives, slashed oil production and driven about athird of the population of 12 million from their homes.
Earlier this month, activists accused the government offunnelling cash from the state oil company to militiasresponsible for atrocities and attacks on civilians.
Announcing the sanctions, the U.S. State Department alsosaid the government and corrupt officials were using oil revenueto buy weapons and fund militias.
Washington has already placed sanctions on South Sudanesemilitary and political figures, and in January imposed an armsembargo to try to halt the flow of weapons into the country,signalling that it had lost patience with the warring factionsfor ignoring ceasefires.
Last year, the government said it planned to more thandouble oil production to 290,000 barrels per day in fiscal2017-2018.
South Sudan is the most oil-dependent country in the world,with oil accounting for almost all its exports and around 60percent of its gross domestic product, according to the WorldBank.
The government said on Thursday it will encourage moreinvestments in the petroleum sector.
Petroleum minister Ezekiel Lol Gatkuoth extended anexploration and production sharing agreement with Petronas ofMalaysia for six years.
The deal covers blocks 3 and 7 in Unity oilfield which havebeen shut down due to the conflict. The government said it hadsecured a commitment from Petronas to resume operations soon.
"Bringing back production at Unity and other fields, andincreasing production overall, are the priorities of thisministry," the minister said in a statement.(Writing by Duncan Miriri; editing by David Stamp)
