Sudan’s oil industry requires proper audit systems: experts
December 12, 2010 (JUBA) - Sudan’s federal government and its southern counterpart should establish a fully-fledged audit system to cater for the oil industry’s socio-economic, environmental, and security impact after the south’s referendum on independence, a two-day oil conference resolved.
The conference on, “Sudan’s oil industry after the referendum”, further recommended that oil companies compensate communities for past and current injustices, respect local cultural traditions, while governments be tasked with establishing a master plan for sustainable local economic development.
While speaking on petroleum policy during the two-day event held in Juba, the south Sudan capital, Jill Shankleman, a socio-political and environmental risk management consultant said all oil companies intending to undertake related projects require comprehensive social, environmental and health impact assessment.
“Any oil company that plans to construct oil refineries, pipelines or any other oil-related activities in a given area must carry out a thorough environmental impact assessment in line with existing regulations,” Shankleman said.
The independent impact assessment, she added, should later be followed by the development of an environmental management plan, which will guide their mode of operations in the communities where they exist.
Rev. James Ninrew, Assistance Mission for Africa (AMA) Director, observed that much as the concept of compensation remains a key element among communities, most oil exploration companies largely ignore national interests, thus making oil grievances part and parcel of south Sudan’s historical problems.
“These oil exploration companies should know that national interests start with the interests of individuals in a given area. Unfortunately for our south Sudan case, these oil companies usually come into these areas with their security personal and immediately begin their activities,” Ninrew said.
According to the AMA Director, Sudan’s oil-producing areas will soon become the “the next Niger Delta”, if the current problems such as poor employment policies, lack of compensation of communities, unequal distribution of oil revenues, among others are not properly addressed.
However, in his address on the current security situations and recommendations for the future, Col. Phillip Aguer from Juba University said that government remains committed towards establishing a coordinated and institutionalized security mechanism to cater for the oil sector.
The conference, which was organized by the European Coalition on Oil in Sudan (ECOS) and Sudan Council of Churches (SCC) from December 7-8, attracted over 100 attendees, including representative from the Government of Southern Sudan, members of the diplomatic community, representatives of the governments of Unity State and Upper Nile State, members of the National Legislative Assembly, legislators, the Chinese National Petroleum Company, Total S.A, among others.
(ST)
- 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.
