President Omar Hassan Ahmad al-Bashir was in Dubai and Abu Dhabi this week promoting Sudan as an attractive investment opportunity for the oil and gas sector.
The beleaguered African nation sits on proven reserves of approximately 6.5 billion barrels, although its political and social instability has deterred many international oil companies from operations for several years.
The President said that whilst China remains Sudan’s primary partner in trade and investment, the UAE is second with investments in the country’s banking finance and real estate sectors.
It is estimated the African nation produced around 500,000 barrels of oil per day last year, of which approximately 425,000 b/d of crude was exported, representing more than 70% of the country’s total export revenues.
In spite of the country’s pariah status with many western and multi-national oil companies the president insisted that development work was continuing with Asian and Middle Eastern firms. In the absence of Western firms the Greater Nile Petroleum Oil Company (GNPOC) has been successful in dominating Sudan’s oil industry. The company is comprised of Chinese (China National Petroleum Corp), Malaysian (Petronas) and Indian (OGNC) national oil companies.
“A large number of companies have achieved very positive results in survey’s of Sudan’s oil fields, and work has resumed in the south of the country,” said al-Balshir addressing the gathered world media in Dubai.
The oil-rich Abyei region in Sudan straddles the disputed north-south border and the resulting violence has negatively impacted the further exploitation of the fields.
“After the departure of Chevron in the early 1990s that gap was successfully filled by Gulf based companies who are now responsible for around 200,000 bpd worth of production,” added the President.
Super-majors Shell and Chevron were awarded concessions in Sudan in 1974 and poured an estimated US$1 billion into the country’s hydrocarbon sector. Chevron quit the Sudan shortly before the UN General Assembly condemned Sudan’s NIF regime for gross violations of human rights in 1992.
The President said he wished to use the visit to the UAE to paint a more balanced view of Sudan and encourage further investment. “The intensive media coverage on Sudan and Darfur is a lie, the claims of genocide and ethnic cleansing are untrue and it is our express goal to stabilise and develop the nation.”
The premier also hinted at a desire to improve relations with Western countries and international companies based in the West. “We have no desire at all to worsen relationships with the US and the West, it is very costly for us. When they change their attitude we will have good relations again.”
The President’s assurances that Sudan is a safe and viable investment option for Middle Eastern business came on the same day the UN urged the need for greater progress. “The continued hostilities in Darfur are a stark reminder that urgent international engagement was needed to pressure the parties to lay down their weapons and commit to the path of dialogue, but the fighting has also made it clear that preparing for negotiations did not seem to be a priority for either the Government or rebel movements, with dire implications,” said the Assistant Secretary-General for Peacekeeping Operations, Edmond Mulet.
Updating the Security Council on the recent violent outbreaks of fighting in West Darfur and providing an overview of the deployment status and priorities of the African Union-United Nations Hybrid Operation in Darfur (UNAMID), he said that, on the one hand, negotiations were required to bring the crisis to an end, but with the Government’s intent on military action and the rebels either fighting or fragmenting, it was difficult to see an opening for political negotiations. On the other hand, a peacekeeping operation alone could not bring security to Darfur.
Noting that United Nations special envoy Jan Eliasson and African Union special envoy Salim Ahmed Salim had said the situation on the political front was “not promising”, he concurred that there was little prospect for beginning substantive negotiations with the parties “any time soon”.
These words will not bring comfort to many potential investors from the region, but the opportunity to work with Sudan’s extensive oil reserves remains a lucrative one.
“The purpose of the visit is to promote healthy international relations, but also to highlight the opportunities and drum up investment,” added Osama al-Hassan of the Sudan Consulate in Dubai.
