(Ecofin Agency) - Dutch multinational commodity trading company, Trafigura, has offered South Sudan an advance payment of $10 million for November oil cargo and also to support the activities of the ministry.

According to the Company in a letter addressed to South Sudan’s new minister of oil, Lol Gatkuoth, and the Minister of Finance, Hon. Stephen Dhieu Dau, requested in advance to be granted the November Oil deal on conditions that it will make an advance prepayment to South Sudan as well as repay past payments made to Sudan on behalf of South Sudan.

“Trafigura will make a prepayment of USD 10 million to Ministry of Finance in order to facilitate the ward of the cargo and support furthermore the ministry in its activities,” Nicolas Marsac, Trafigura’s Asia Pacific CFO said in the letter.

He added that the deal will serve as a positive point for continuous partnership.

“As you are aware the September Cargo value has been primarily used by Trafigura to clear throughput fees due to Sudan by the Republic of South Sudan and therefore not much amortization was allowed for Trafigura. The Novemeber Cargo will therefore allow to partially compensate for that and it would be a positive point with regards to our continuous partnership and further prepayment plans in the near future to the Republic of South Sudan,” Nicolas Marsac continued.

Meanwhile concerns have been raised as to the company’s involvement in South Sudan.

Trafigura is deeply involved in South Sudan politics, controlling its oil accounts and helping the two rivaling Sudan profit from their crude oil and has been considered to be scandalous as it faces several scandals in its operations across the world.

The company’s trading in South Sudan and Sudan to nationals, intellectuals and observers will have long term consequence on many people in South Sudan, particularly in Greater Upper where oil fields were found, Nyamilepedia news reports.

Anita Fatunji