Regional business : Unease over oil revenues in Sudan could spark war

Mistrust over the sharing of oil revenues in Sudan could spark another round of armed conflict in Africa’s largest country.

Mistrust over the sharing of oil revenues in Sudan could spark another round of armed conflict in Africa’s largest country.

This follows findings by Global Witness — a UK-based anti-corruption organisation — to the effect that Arabic North was underpaying their southern partners in the Comprehensive Peace Agreement (CPA)

According to the report, Fueling Mistrust; the Need for Transparency in Sudan’s Oil Industry, figures given by the Khartoum Government are between six to 21 per cent lower than those reported by firms operating the seven oil blocks in the region.

Dr Rosie Sharpe, an official with Global Witness said mismatches of this magnitude represent massive sums of money.

“If, for instance, the figures are underreported by 10 per cent – which is conservative according to our findings – the Southern Sudan Government would be owed over $600 million,” said Sharpe.

“This is more than three times the South’s combined annual budget for health and education.”

The organization said the unfair sharing of oil revenues amounted to breaching the agreement, which was signed in Nairobi in 2005 and now threatens political and economic stability in Sudan and her neighboring countries. 

The Standard

 

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