The role of Lundin Petroleum, OMV and Petronas in Sudan’s oil war 1997-2003

ECOS’ report, UNPAID DEBT: The Legacy of Lundin, Petronas and OMV in Sudan, 1997-2003, says that the start of oil exploration in Block 5A in Southern Sudan set off a spiral of violence as the Sudanese government and forces loyal to them set out to secure and take control of the oil fields in that block. Thousands of inhabitants died, and almost 200,000 people were violently displaced.

Atrocities included killings, rape, child abduction, torture, the destruction of schools, markets and clinics and the burning of food, huts and animal shelters. Thousands died, and almost 200,000 people were violently displaced.

The terror began after the Sudanese government signed an oil exploration contract with a consortium comprising Swedish company Lundin Oil AB, Petronas Carigali Overseas from Malaysia, OMV (Sudan) Exploration GmbH from Austria, and the Sudanese company Sudapet Ltd.

The oil consortium, the report says, ‘should have been aware of the abuses committed by the armed groups that partly provided for their security needs. However, they continued to work with the Sudanese government, its agencies and its army’.

Now ECOS is calling on the Swedish, Austrian and Malaysian governments to investigate whether, as a matter of international law, the companies ‘were complicit in the commission of war crimes and crimes against humanity by others during the period 1997-2003.’

ECOS is calling for the oil companies to recompense survivors of the violence. A material right to compensation for past injustices that occurred as a result of oil exploitation is created in both Sudan’s Comprehensive Peace Agreement (CPA) and the country’s Interim National Constitution, but no adequate compensation has been received to date.

Lundin, which led the oil consortium, denies that it violated the norms of international law or that it participated in or had, or ought to have had, knowledge of any of the illegal acts that are documented in the report.

It says that it at all times acted in accordance with all applicable local and international laws and its operations have been and continue to be conducted in a manner which seeks to have a positive influence on the country and people of Sudan.

There should be no more war over oil in Sudan. The parties to the 2005 Comprehensive Peace Agreement (CPA) are discussing arrangements for the future management of the oil industry. These should include compensation, and the oil companies and their home governments can play a key role in bringing that about. Moreover, ECOS contends that it is their duty. A compensation process that will do justice to the victims and is designed to create the conditions for reconciliation and forgiveness, would bring crucial peace dividends and contribute to a much needed environment of trust in the oil-producing areas and beyond.

Therefore, to promote peace and achieve justice for the victims of the oil war in Block 5A, ECOS recommends that:

1. The Governments of Sweden, Austria, and Malaysia investigate the alleged violations of norms of international law by their national oil companies.
2. The Governments of Sweden, Austria, and Malaysia account for their failure to prevent the alleged human rights violations and international crimes.
3. The Governments of Sweden, Austria, and Malaysia ensure appropriate compensation for all persons whose rights have been violated in the course of the war for control over Sudan’s oil fields.
4. The international guarantors of the Comprehensive Peace Agreement (CPA) take urgent initiatives to ensure implementation of the right to compensation as established by the CPA.
5. The members of the Lundin Consortium open all records and fully cooperate with investigations into their role in the reported events.
6. The members of the Lundin Consortium create enabling conditions for reconciliation with victims of the oil war, starting with the allocation of their fair share of compensation for the victims, which ECOS estimates at US$300 million.
7. Investors divest from all companies that do not fully cooperate with investigations into credible allegations of complicity in international crimes or fail to compensate the victims of Sudan’s oil wars pursuant to the terms and conditions of the CPA and the UN Guidelines.

Download the full report UNPAID DEBT: The Legacy of Lundin, Petronas and OMV in Sudan, 1997-2003

There is a seperate report with satellite images of Block 5A.

See also www.ecosonline.org