The axis of instability in Sudan: oil wealth
Oxfam and other NGOs are right to raise humanitarian concerns and point to poverty as a driver of civil unrest in Sudan. However, Global Witness believes that increased transparency in the oil sector is also imperative to avoid a return to violence (World briefing, 7 January).
Oil wealth has been a crucial axis of instability. It was a key driver of the conflict, and the oil-revenue-sharing agreement formed the basis of the peace settlement. That agreement will end next year, coinciding with a referendum in which the south is likely to vote to
secede - taking 80% of the oil wealth with it.
The current agreement gives the south half of the revenues from southern wells, but leaves the north in control of generating information on how much is produced. Our investigations have revealed discrepancies in the figures reported by Khartoum and those from the
main oil company operating in the area, CNPC. This lack of transparency is fuelling the mistrust between the two parties, and exacerbating the tensions around the referendum and borders.
This week is critical: energy ministers are considering draft terms of reference for an oil revenue audit, which could build grounds for trust in the future. Global Witness welcomes this move and believes that the ministers should recommend that the audit be carried out by a
credible, independent organisation. It should mandate the establishment of systems by which the oil volumes, oil prices and oil companies' costs can be verified.
Rosie Sharpe
Global Witness
- Database Search
- Unpaid Debt A comprehensive overview of the role of the Lundin Consortium in the oil war. ECOS calls upon the Swedish, Austrian and Malaysian governments to investigate whether, as a matter of international law, Lundin, OMV and Petronas 'were complicit in the commission of war crimes and crimes against humanity by others during the period 1997-2003.’ In response, the Swedish Public Prosecutor for International crimes opened a criminal investigation into ‘links between Sweden and the reported crimes’.
- In Depth For more specific information about the Lundin court case please visit the Unpaid Debt dossier.
