News Article by THE ECONOMIST posted on August 31, 2000 at 17:47:54: EST (-5 GMT)
Sudan's oil - Fuelling a fire
THE ECONOMIST
September 2, 2000
KHARTOUM
WHEN Talisman bought a chunk of oil rights in Sudan two years ago, Jim
Buckee, the Canadian company's chief executive, talked of its "spectacular
potential". Spectacular it has been, but not always in ways that pleased Mr
Buckee. The Heglig field lies across all the faultlines that have caused
Sudan's civil war: political, religious and ethnic. Like Shell in Nigeria,
Talisman has found itself in the middle of a war and under fire from
activists back home.
The Greater Nile Oil Project, which is 25% owned by Talisman, Canada's
largest independent oil- and gas-exploration firm, could transform Sudan into
a medium-sized oil producer. But history suggests otherwise. The very
discovery of oil contributed to the renewal of the war in 1983 and, when oil
first started flowing in June last year, the rebel Sudan People's Liberation
Army (SPLA) pledged to stop it. They blew up the oil pipeline to Port Sudan
on the Red Sea three times.
Implementing this has proved difficult. Sudan's war is nearly 50 years old
and nasty. Since 1983 it has killed an estimated 2m people and displaced a
further 4.5m. In the area just south of Talisman's Heglig field there are at
least five armed bands roaming around, including the government forces and
the SPLA rebels. Others are militia bands led by warlords who tend to fight
for the highest bidder. Into this violent chaos Talisman is trying to
introduce human-rights monitoring. It has designed a form for monitors to
record violations in its area and it is even offering to give human-rights
training to the government soldiers designated to protect the oil
installations.
That is the crunch for Talisman. Sudan's government finances are obscure but,
according to one minister, Sudan's top priority is to refurbish the army.
Some of the estimated $300m the government will get from oil this year is
already being spent on weapons. For all its concern for ethical business,
human rights and development, the ugly truth is that Talisman is helping the
government extract oil, and oil is paying for the war.
http://southsudanfriends.org/issues/EconomistOnTalisman.htmlThe Report of a Canadian Assessment Mission
Prepared for the Minister of Foreign Affairs, Ottawa, January 2000
The preponderance of Southern opinion we encountered was that Oil was hurting their people. We tried hard to find out what people thought and felt, and tried hard to figure out just what is going on. Leonardo Franco’s predecessor as Special Rapporteur, Gaspar Biro, has been quoted as saying that if the oil companies don’t know what’s going on, they’re not looking over the fences of their compounds.
Of course, Talisman maintains that it keeps itself well-informed, and there is some reason to believe that this is so, at a certain level. However, we were often told, and saw for ourselves, that great reliance is placed on the GNPOC security staff for local information. If Talisman was really looking “over the fence”, what would its people have seen?
http://www.ms.dk/Kampagner/Sudan/oil.htm#Situation%20of%20human%20rights%20in%20the%20SudanSituation of human rights in the Sudan
Summary of the draft report of the Special Rapporteur
Commission on Human Rights, Fifty-sixth session, Agenda item 9, E/CN.4/2000/36, Geneva, 19 April 2000.
15. The Special Rapporteur is of the view that the prolonged war in the Sudan mainly affects the civilian population, whose plight should be regarded as one of the most important human rights concerns facing the international community. Although of rather low intensity, the war has a disproportionately high impact on the civilian population, in particular women and children, who become hostages or targets of the belligerents. Consistent and undisputed evidence indicates that the war is being conducted in disregard of human rights and humanitarian law principles, and that violations are perpetrated by all parties, albeit with varying degrees of responsibility, the greater portion being attributable to the Government.
17. The Special Rapporteur has found that the Government is continuing to practise indiscriminate bombing, which appears to have intensified during recent weeks, with a heavy toll of civilians. In this connection, the Special Rapporteur strongly condemns the bombing of the school at Kaouda in the Nuba Mountains, as well as the heinous practice of bombing civilians as they gather to collect humanitarian food aid, mainly in the Upper Nile zone.
http://www.ms.dk/Kampagner/Sudan/oil.htm#Situation%20of%20human%20rights%20in%20the%20SudanWorld Report 2000
Human Rights Watch, Washington, 2001
The government of Sudan remained a gross human rights abuser, while rebel groups committed their share of violations. In the seemingly endless seventeen-year civil war, the government stepped up its brutal expulsions of southern villagers from the oil production areas and trumpeted its resolve to use the oil income for more weapons. Under the leadership of President (Lt. Gen.) Omar El Bashir, the government intensified its bombing of civilian targets in the war, denied relief food to needy civilians, and abused children’s rights, particularly through its military and logistical support for the Ugandan rebel Lord’s Resistance Army (LRA), which held an estimated 6,000 Ugandan children captive on government-controlled Sudanese territory. As for the Sudan People’s Liberation Movement/Army (SPLM/A), the principal armed movement of the south and of all Sudan, its forces continued to loot food (including relief provisions) from the population, sometimes with civilian casualties, recruit child soldiers, and commit rape. On both sides, impunity was the rule. (...)
Negotiations to end the war appeared fruitless, whatever the forum or venue. The parties remained stalled on the issues of the relation of religion to the state and self-determination. Sudan’s Arab and African, Muslim and non-Muslim population is spread between nineteen major ethnic groups and 597 subgroups speaking Arabic and more than 115 indigenous languages. (...)
http://www.ms.dk/Kampagner/Sudan/oil.htm#World%20Report%202000The Scorched Earth, Oil and war in Sudan
by Christian Aid, London, March 2001
‘When the pumping began, the war began... Oil has brought death.’
Chief Malony Kolang, Western Upper Nile
In the oilfields of sudan, civilians are being killed and raped, their villages burnt to the ground. They are caught in a war for oil, part of the wider civil war between northern and southern Sudan that has been waged for decades. Since large-scale production began two years ago, oil has moved the war into a new league. Across the oil-rich regions of Sudan, the government is pursuing a ‘scorched earth’ policy to clear the land of civilians and to make way for the exploration and exploitation of oil by foreign oil companies.
This Christian Aid report, The Scorched Earth, shows how the presence of international oil companies is fuelling the war. Companies from Asia and the West, including the UK, have helped build Sudan’s oil industry, offering finance, technological expertise and supplies, to create a strong and growing oil industry in the centre of the country. In the name of oil, government forces and government-supported militias are emptying the land of civilians, killing and displacing hundreds of thousands of southern Sudanese. Oil industry infrastructure –the same roads and airstrips which serve the companies – is used by the army as part of the war. In retaliation, opposition forces have attacked government-controlled towns and villages, causing further death and displacement. Exports of Sudan’s estimated reserves of two billion barrels of oil are paying for the build-up of a Sudanese homegrown arms industry as well as paying for more arms imports. Without oil, the civil war being fought between the government of Sudan and the main opposition force, the Sudan People’s Liberation Army (SPLA) is at a stalemate; with oil, it can only escalate.
http://www.ms.dk/Kampagner/Sudan/oil.htm#The%20Scorched%20Earth,%20Oil%20and%20war%20in%20SudanCorporate Social Responsibility Report 2000, Sudan Operations
Talisman Energy Inc., Calgary, April 2001
“There have been many media and third-party reports of population displacement in oil field areas. We are aware that historically there has been conflict and strive in the 19,000 square mile concession are amongst Baggara, Dinka and Nuer groups and militias sometimes alligned with the government, sometimes not. Conflict still periodically occurs within the GNPOC con-cession. We believe that all persons whose land use has been impacted by GNOPC operations in the concession and along the pipeline should receive fair and just compensation. In the conces-sion area, GNPOC has compensated people affected by GNPOC operations, such as drilling wells and seismic exploration activity. However, the process of identifying people affected by such activity and the provision of fair compensation has not been well documented.” (p. 17)
http://www.ms.dk/Kampagner/Sudan/oil.htm#Corporate%20Social%20Responsibility%20Report%202000,%20Sudan%20OperationsList of International Companies involved in the Sudanese Oil Industry
BP (UK), a major investor in PetroChina, a subsidiary of CNPC. There is nothing to stop this investment being used to fund CNPC operations in Sudan.
China National Petroleum Company (CNPC) (China), holds 40% of block 1, 2 and 4 through its share in GNPOC; holds the concession block 6.
ExxonMobil (USA), downstream operations only. Sells i.a. aviation fuel at Khartoum and Port Sudan airports. Holds a large interest in the installations there which are used to fuel the Sudanese airforce.
Lundin Oil AB (Sweden/Switzerland), lead operator in block 5a, holding 40%.
OMV Aktiengesellschaft (Austria), holding 26.125% of block 5a.
Petronas (Malaysia), holds 28.5% of block 1, 2 and 4 through its 30% share in GNPOC.
Rolls Royce (UK), supplies GNPOC with equipment and operational support.
Royal Dutch/Shell (Netherlands/UK), downstream operations only. Sells aviation fuel at six locations in Sudan, i.a. to the Sudanese airforce. Promised on 16 May 2001 to end this activity.
Talisman Energy Inc (Canada), lead operator and 25% owner of Greater Nile Petroleum Operating Company (GNOPC) through its 100% Dutch subsidiary Talisman Greater Nile B.V. GNPOC owns the pipeline from Bentiu to Port Sudan and holds the concessions of block 1, 2 and 4.
TotalElfFina (France/Belgium), holds the 120.000 km2 concession block 5; trades Sudan Nile Blend crude.
Trafigura (Netherlands/UK/Switzerland), trades Sudan Nile Blend crude on behalf of Talisman.
Weir Pumps Ltd. (UK), supplier of pumping stations and drivers to the Sudanese oil industry.
http://www.ms.dk/Kampagner/Sudan/oil.htm#List%20of%20International%20Companies