This study has discussed why technology, human capital and financial resources are important in nationalisation of the oil industry in South Sudan, which is run by the multinationals, even though it is the largest contributor to government revenues and over 70% of South Sudan’s GDP. A mixed-methods research design was used to conduct the primary data collection through questionnaires and semi-structured interviews with oil industry professionals and government representatives, but secondary data were obtained through company reports, government archives, and the use of relevant academic literature.
The findings indicate that technology has the potential to significantly enhance operational efficiency and the pace of oil recovery, but due to the few technologies in the free market that have developed drilling and digital oilfield technology, effective nationalisation is low. The capability to reduce reliance on expatriates and improve sector performance was identified to be acutely focused on human capital, yet unaddressed skills shortages, inadequate training regimes, and ineffective knowledge transfer systems represent a major challenge. Although the financial resources are very important in exploration, technology acquisition, and capacity development, their impact is diluted by dependence on external funding, failure to reinvest the oil earnings, and governance challenges.
According to the study, nationalisation in South Sudan should be understood as a capacity process, but not necessarily as an ownership or revenue control process. The study, making use of technological capability, workforce development, and financial governance, contributes to the resource nationalisation literature a situation-based, capacity-oriented view of resource nationalization, particularly to weak, post-conflict economies.
The policy implications of the results are substantial and include the need to design technology transfer policies, an improved system of local content and training, and the establishment of a sovereign wealth fund to cover the long-term financial cost of sustainability. It is proposed that further research be conducted to examine the long-term effects of capacity-building reforms and make a comparative analysis with other resource-rich but institutionally constrained countries.