South Sudan Jonglei Leaders Endorse UK Oil White Nile
May 7, 2007 (BOR, South Sudan) — Bor community leaders say White Nile Limited ( WNK.LN), a UK oil company will go ahead with oil exploration in Block BA in Jonglei state in Southern Sudan — an area a French giant oil Company Total SA (TOT) claims the right to, when it signed agreement with then Government of Sudan back in 1980 — despite a pending court case against White Nile Ltd.
Reacting to Total’s decision to take White Nile Limited to a court in UK over the rights to explore oil in Block BA, the governor of Jonglei state Phillip Thon Leek said, “a court in the UK has no right to decide who I should give my land to carry oil exploration in”.
The governor added that Total’s signed an agreement with the then Government of Southern Sudan without involving Southern Sudanese — who he says — have the right to decide on how their natural resources are managed. He said Total’s link to Khartoum will not resolve dispute over the concession.
White Nile Ltd has already embark on series of community development projects among them working on the roads linking 3 counties of Bor in Jonglei state, providing employment to skilled and unskilled people from the community, drilling of boreholes to provide water for domestic use, building schools and health centres as well as supplying Satellite Communications systems in the state according to a White Nile official.
Leek said the state will support White Nile to accomplish some of the community projects that it has initiated.
“White Nile Ltd is one the oil companies that is committed to community development and environmental conservation unlike other oil companies operating in other parts of southern Sudan such as those in the Unity and Upper Nile state”, said Leek.
He added that White Nile has promised to provide scholarships to 20 students in universities and colleges in East Africa and United Kingdom though the details of the scholarships have not been officially announced.
The Commissioner of Bor County, Jok Aring said the community has welcomed White Nile Ltd since it is committed to community development. “White Nile is an honest partner in development and company that is committed to the welfare of the people of Southern Sudan and people of Jonglei state”, he said.
The leaders were quick to point out that White Nile Ltd “must produce a transparent and honest environmental impact and social assessment report prior to any drilling operations in the concession”. White Nile started drilling oil in Jalle, one of the 3 potential wells in Block BA on the 19th April 2007. White Nile Ltd, through independent Environmentalistes Sans Frontieres (ESF) has produced Environmental Impact and Social Assessment report (EIA/EISA) report as demanded by the leaders.
In a telephone interview from France, Total’s Director of Public Relations, Jean-Francois Lassalle said Total is negotiating with the government of Southern Sudan and the Government of National Unity on ways of solving the disputes.
“The dispute over Block BA in Jonglei state is highly political and we don’t want to meddle in the political affairs of Sudan”, he said.
He alleged that White Nile Ltd signed the agreement to explore oil in Block BA with “some individuals in the government of Southern Sudan and not government of southern Sudan as an authority over the region”. However, according to a White Nile official, the government of Southern Sudan through its national oil company, Nile Petroleum Company owns 50 per cent stake in the block and White Nile own the other half. The official maintains that no individuals in the government of southern Sudan own shares in White Nile Ltd.
Lassalle said White Nile Ltd has no technological capability to carry out successful oil exploration in an area — which he says — is mostly swampy.
Total has brought the case before the UK courts, maintaining that its 1980 contract with then Government of Sudan is still valid under the Comprehensive Peace Agreement signed by the National Congress Party and the Sudan People’s Liberation Movement 2005 and succeeded in getting White Nile to unveil documents and contracts details with the government of southern Sudan.
Under the CPA, the government of southern Sudan receives 50 per cent of all oil revenues produced in the South. The CPA also states that all oil contracts signed before the signing of the CPA shall not be open to negotiation.
Total has hinted that it will offer the Government of Southern Sudan a stake in the disputed oil field if GOSS allows the Total to explore oil in Block BA.
As at now Total has no access to the area according to directives from the government of Southern Sudan.
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