Sudan, Oil, and Human Rights

TABLE OF CONTENTS

Map A: Sudan
Map B: Oil Concessions in Central and Southern Sudan as of August 2002
Map C: Oil Activity and the Scene of War in Western Upper Nile, as of October 31, 2002
Map D: Ethnic Geography In Western Upper Nile
GLOSSARIES

The Concession Holders
Past Players
Main Rebel and Militia Forces in Southern Sudan Named in this Report
Key Southern Individuals Named in This Report
Key Non-Southern Individuals Named in This Report
Glossary of Terms and Abbreviations


SUMMARY

The Displaced
Sudan’s Land and Peoples
Oil in Sudan: The Corporate Holdings
Government Strategy of Divide and Displace
Government Revenue from Oil and Expenditures on Arms
Corporate Responsibility
Talisman and the Canadian Government
The Role of the U.S.
Postscript: Peace Talks Update 2003


PART I: OIL IN SOUTHERN SUDAN
EARLY DEVELOPMENTS
BACKGROUND

Blocks 1, 2, 4, and 5A and 5B: Oil Geography
Human Population

Maps and Tax Records of Nuer and Dinka Presence

The Living Patterns of Dinka and Nuer

Relations between Baggara, and Nuer and Dinka

Independence, Civil War, and the Addis Ababa Agreement


THE CHEVRON PERIOD: 1974-92

Overview
Chevron Oil Concessions

Southern Fears about Oil Development

Resumption of Civil War

Formation of SPLM/A in Ethiopia, 1983
Government Use of the Baggara as a Forced Displacement Tool, 1980s

Chevron Attempts and Fails to Develop the Oilfields

Overthrow of President Nimeiri, Chevron Pulls Out, 1985

Civil War and Political Developments

Elections 1986, Military Coup 1989
SPLA Control of Western Upper Nile
Government Use of Paulino Matiep’s Nuer Militia
Government Army Displacement of Nuer from the Oilfields, 1990
SPLM/A Split; Riek Machar Heads Breakaway Faction, 1991


THE ARAKIS PERIOD: 1992-98

Overview
Arakis Energy’s Struggle to Develop the Oilfields

Early Problems for Arakis, 1992-93. 162
Formation of GNPOC Consortium, 1996. 164

Divide, Displace, and Destroy in the Oil Areas

Army/Muraheleen displacement, 1992-98
The 1996 Political Charter and the 1997 Khartoum Peace Agreement
Contested Elections and Displacement by the Nuer Militias, 1996-98


PART II: OIL FUELS THE WAR
OIL DEVELOPMENT AND DISPLACEMENT
IN BLOCK 5A, 1996-98

Overview
Lundin (IPC) Enters the Scene, 1996

The Significance of the GNPOC Pipeline
Block 5A Operations in 1998

Fighting and Displacement of Nuer Communities in Block 5A, May-October 1998

Government Depopulates Block 5A, 1998
Government Army and Paulino Matiep Militia in Ler, 1998
Relief Agencies Note Forced Displacement and Devastation in Western Upper Nile, 1998


THE WUNLIT NUER-DINKA RECONCILIATION PROCESS, 1999

Overview
The West Bank Nuer/Dinka People-to-People Peace and Reconciliation Conference, February-March 1999

Purpose of the Wunlit Conference
Participants at the Wunlit Conference
Proceedings and Resolutions at the Wunlit Conference


OIL SUCCESSES FOR GOVERNMENT DESPITE REBEL MILITARY OPPOSITION: TALISMAN STEPS IN, 1998-99

Overview
Talisman Becomes New Lead Partner for Blocks 1, 2, and 4, Mid-1998
Government Inaugurates Oil Pipeline in Heglig, May 1999
Government Inaugurates Khartoum Oil Refinery, June 1999
First Oil Exports Flow from Sudan, August 1999
Incidents of Pipeline Sabotage, 1999

Government Relations with Southern Militias, 1999
Divisions in Paulino Matiep’s Bul Nuer Militia, October 1998-September 1999
Government Foments Division of SSDF Into Smaller Nuer Militias
Dispute over Block 5A Oilfields between Government and SSDF, Early 1999

Government Calls for Military Volunteers to Defend Oilfields, 1999


DISPLACEMENT AND DEVASTATION IN BLOCK 1, 1999

Overview
Government Campaign of Forcible Displacement from Block 1, February-July 1999


BATTLE FOR CONTROL OVER BLOCK 5A

April-June 1999

Overview
Battle for Control of Block 5A: First Rebel Attack on Oil Operations Since 1984; Lundin Evacuates, May 1999

Fighting Begins As Army Troops Attempt to Occupy Oil Rig
Government Army Occupies Lundin Drilling Site; Militia Forces Chase Civilians and SSDF Rebels to a Distant Corner of Block 5A
Each Side Accuses the Other of Instigating Fighting in Block 5A, May 1999

Civilians Displaced from Block 5A, May-August 1999

Nuer Civilians Flee to Mayandit, then to Dinkaland
Dinka Warmly Welcome Displaced Nuer, Slow International Relief
Other Displaced Nuer Embark on Hazardous Journey to Nyal and Ganyliel

Other Human Rights Abuses Linked to Displacement, 1999

Rape and Other Abuses Against Women
Government Use of Antipersonnel Landmines
Rebel Treatment of Prisoners
Rebel and Government Militia Recruitment of Child Soldiers


OIL-CAUSED REALIGNMENT OF SOUTHERN REBEL FORCES AND ESCALATION OF WAR, LATE 1999

Overview
Rapprochement Between the SPLM/A and SSDF 1999
Renewed Fighting in Block 5A, July 1999
Khartoum Peace Agreement Talks Fail Again
Pro-Government Militia Commander Peter Gatdet Mutinies Against Paulino Matiep and Government, September 1999

Cmdr. Peter Gatdet’s Troops Attack Oil Areas and Oilrig in Block 1, October 1999

Government Recruitment and Diplacement in the Oilfields, October 1999

Government Army Displaces Athonj and Other Villages Near El Toor Oilfield, Block 1, 1999
Calls for Mujahedeen Volunteers

Nuer Peace Talks; Formation of the Upper Nile Provisional Military Command Council, November 1999
Fighting Continues between Southern Rebels and Government in Blocks 1 and 4, November 1999


THE OIL ROAD: NUER DISUNITY AND OIL DISPLACEMENT INCREASE, 2000

Overview
Riek Machar Resigns from Government and Forms Sudan People’s Defence Forces/Democratic Front, February 2000
Government Offensives in Support of Road Building for the the Oilfields, 2000

Fighting Along the Oil Roads, April 2000

Nuer Forces, Armed by Others, Return to Fighting Each Other, July-October 2000

SPDF Forces Receive Government Ammunition to Fight SPLA, June-July 2000
Government Completes All-Weather Road to Ryer/Thar Jath
A Journalist Travels the Oil Road, April 2001

Government-Armed Offensive Leaves Tens of Thousands of Civilians Uprooted, 2000


MORE PEACE EFFORTS, MORE FIGHTING IN THE OILFIELDS: 2001-2002

Overview
Political Developments Related to the Oil War

Southern Efforts to Unite Southern Militias in Government Territory
Wunlit Threatened by Continued Intra-Nuer SPLA/SPDF Fighting, February 2001
SPLM/A and SPDF Talks and Merger, 2001-2002
U.S. Peace Initiative Under Senator Danforth, September 2001-May 2002

Military Developments Blocks 1, 2, and 4: GNPOC

Use of GNPOC Airstrips
Block 5A, Early 2001
The Military Tide Turns Toward the Rebels in Block 5A, Late 2001-2002; Lundin Suspends Operations Again
Government Counter-offensive in Block 5A, 2002, Displaces Civilians

Displacement Crisis in Oil Areas Because of Fighting, 2001-2002
Oil Developments

Oil Production Increases in Blocks 1, 2, and 4
Lundin Makes a “Significant Oil Discovery” in Block 5A in 2001, Suspends Operations Again in 2002
New Blocks to be Exploited


PART III: HUMAN RIGHTS CONSEQUENCES OF OIL DEVELOPMENT
INTERNAL DISPLACEMENT AND INTERNATIONAL HUMANITARIAN LAW

Overview
Numbers of Nuer and Dinka Displaced from Oil Blocks in Western Upper Nile/Unity State

1998-1999
2000-2001
2001-March 2002

The Illegality of Forced Displacement under International Humanitarian Law

Contractually-Incurred Obligations Forbidding Forced Displacement
Oil Operations as a Military Objective

Relief Politics and Abuses in the South

Government Flight Bans and Bombings of Relief Locations in Western Upper Nile
Rebel Manipulation of Relief

Overview


TABLE 1: SUDANESE GOVERNMENT OIL REVENUE AND MILITARY EXPENDITURES, 1999-2002


Oil Revenues Soar

Government Ability to Stem Post-2005 GNPOC Production Decline Hinges on Block 5A and Other New Production

Government Military Spending Almost Doubles in Two Years, Using Up 60 percent of the Oil Revenue
Government Uses Oil Wealth for Arms Imports and Industry

Sudan Suspected of Acquiring Polish Tanks Intended for Yemen, August 1999
Government Revenue from Oil, Development Applications?

IMF Audits
Government Uses Oil Revenue to Buy Friends
Increased Government Bombing of the South

Bombing in 1999
Increased Bombing in 2000
Bombing Condemned, April 2000
U.S. Attempts to Obtain an End to Civilian Aerial Bombardment, 2001/2002


NEGLECT OF THE ENVIRONMENT

Environmental Issues Regarding the Sudd and the Jonglei Canal
Warnings about Environmental Impact of Oil Extraction
Talisman’s and GNPOC’s Limited Environmental Impact Assessment, August 1998
Block 5A: Lundin Claimed Environmental Impact Study Done
Satellite Evidence of Alteration to the Environment and Drying Out of River/Stream Bed


PART IV: FOREIGN CORPORATE COMPLICITY, FOREIGN GOVERNMENT SUPPORT
TALISMAN AND CANADA, 1998-2000

Talisman’s Decision to Invest
Talisman Failure to Investigate Allegations

What Riek Machar Said He Told Talisman, 1998-99
What Gov. Taban Deng Said He Told Talisman, 1999

The Campaign Against Talisman

Canadian Government Promises Action on Talisman, March-April 1999
Talisman Annual Meeting May 1999
U.N. Expert Criticizes Oilfield Human Rights Abuses, October 1999

Canadian Government Issues Policy Statement on Sudan, October 1999; Talisman Signs Code of Conduct, December 1999

Southern Politicians in Khartoum Denounce Oil Companies, November 1999

Talisman Takes Oil Analysts on Company Tour of Sudan, November 1999
The Harker Report

Canadian Government Announces Toothless Sudan Program, February 2000

U.S. Criticizes Canada
Canadian Initiative at U.N. Security Council Blocked, April 2000


TALISMAN “HUMAN RIGHTS” AND DEVELOPMENT EFFORTS, 2000-2002

Talisman Annual Meeting, May 2000
Talisman Meets the Sudan Government; GNPOC Signs Code of Ethics, December 2000
Talisman Human Rights Monitoring
Corporate Social Responsibility Report 2000, Sudan (April 2001)

Compensation Payments (Pipeline Only)
Development Initiatives and Relief Donations

Talisman Condemned at Annual Meeting 2001

Canadian Government Response

Cynical Satellite Images, 2001
Talisman Annual Meeting, May 2002
Talisman Pulls Out, October 2002


LUNDIN: WILLFULLY BLIND TO DEVASTATION IN BLOCK 5A

Lundin’s Concession

Lundin Hides the Situation of Armed Conflict in Block 5A

Lundin Denies Revelations about Forced Displacement in Block 5A, 2001
Lundin’s “Oil Policy on Sudan” Substitutes for a Human Rights Policy
Talisman Buys Lundin’s Non-Sudan Assets, June 2001
Lundin Suspends Operations Due To “Insecurity,” January 2002-April 2003
Lundin Community Development Program


CHINA’S INVOLVEMENT IN SUDAN: ARMS AND OIL

Arms Trade between China and Sudan
China’s Need to Acquire Foreign Oil Reserves
China’s First Initial Public Offering on the N.Y. Stock Exchange Backfires

CNPC Erects a “Firewall” to Satisfy Activists
Opposition Undercuts PetroChina Initial Public Offering, March 2000
2001

CNPC Participation in Government Refinery


OTHER OIL COMPANIES

Petronas: Partner in GNPOC, Lundin, and Block 5B Concessions
OMV (Sudan): Excited about Thar Jath Discoveries
TotalFinaElf: Courted by Khartoum Government
Royal Dutch/Shell 632


THE UNITED STATES: DIPLOMACY REVIVED

Overview
Clinton Administration Policy on Sudan
U.S. Bombs Khartoum, August 1998
U.S at the U.N.
U.S. Congress Gets in on the Act
Campaign Against Oil Investment

Pressure to Sell Off Talisman Shares
The Campaign for Capital Market Sanctions
Talisman Sued by Displaced under the Alien Tort Claims Act in New York

U.S. Aid to Sudanese Rebel Groups
U.S. Special Envoy for Humanitarian Assistance to Sudan: May 2001
U.S. Special Envoy for Peace in Sudan: September 2001
U.S. Policy in Sudan, 2002


EUROPEAN UNION

E.U.-Sudan Political Dialogue
E.U. Leadership at the U.N. Commission on Human Rights


PART V: CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION

RECOMMENDATIONS

I. Minimum Benchmarks

Displacement
Transparency

II. Failure to meet benchmarks

To the European Union and its member states (notably Sweden, Austria, France, Germany, and the United Kingdom), and the governments of Canada, China, and Malaysia, and any other state where oil companies operating in Sudan are headquartered

III. Additional Recommendations

To the companies
To the Government of Sudan
To the United States
To the Canadian Government
To the governments of Canada, China, and Malaysia
To the European Union and its member states, notably Sweden, Austria, France, Germany, and the United Kingdom
To the members of the United Nations Security Council
To the World Bank
To the rebel forces: the SPLM/A and other anti-government armed groups


APPENDIX A: CHART OF BOMBING CONDUCTED BY THE GOVERNMENT OF SUDAN, 2000-2001
APPENDIX B: International Monetary Fund, Code of Good Practices on Fiscal Transparency
APPENDIX C: CHRONOLOGY: OIL, DISPLACEMENT, & POLITICS IN SUDAN

Acknowledgments
Colophon

September 2003     ISBN: 1564322912

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