Sudan: Lundin Oil refutes the allegations Lundin Oil press release, Tuesday April 3
The impact of oil operations in Sudan is presently being widely discussed in various circles and a number of unsubstantiated allegations have been made. Such claims include the assertion that foreign oil companies exacerbate the conflict by encouraging the government to engage in population displacement and scorched earth policy (i.e. burning down villages), in order to ensure easy access to the oil.
Lundin Oil wishes to refute those allegations in the strongest terms.
Working in a country like Sudan presents many challenges, but we firmly believe that we can make a positive difference by being there.
The preliminary report on human rights delivered by the UN Special Rapporteur on Human Rights in Sudan indirectly implicates oil companies in human rights violations, although it also cites improvements in the overall human rights situation. We deeply regret that the Special Rapporteur did not visit the oil areas before delivering his report, and have invited him to visit the Lundin concession at his earliest convenience. It is our belief that he would not have reached the same conclusions had he seen first hand what oil means to Unity State and its people, and heard from the local inhabitants how they feel about the presence of oil companies.
Having carried out our own investigation, we can now state categorically that there has been no forced population displacement along the 80 km all-weather road which runs from our base camp at Rubkona to the present drill site at Jarayan, no burning of villages to make way for the road. There are witnesses on the ground who are prepared to testify about this.
As part of our investigation, Ian Lundin, President Lundin Oil travelled to the area. A summary of his report follows:
‘’In the Bentiu/Rubkona area, a government held area, I saw an unusually large number of people who have moved in. These people have moved to this area due to combination of factors, which include insecurity caused by rebel activity, a poor agricultural season due to a severe drought and seasonal migration.
They come to this area because it offers a number of amenities not available elsewhere. They also come there because they feel protected from ongoing tribal fights.
Along our all-weather road, there are few settlements, but no burnt villages. We chose the location of the road in order not to interfere with existing settlements. Nonetheless, we did meet a number of people nearby and they told us the following:
There had been fighting in the area as a result of rebel attacks on Nuer villages which are under the protection of the SSUM and SSIM forces that are themselves allied with the Government, but the situation had calmed down.
During this part of the year, people living in that area of our block move with their cattle to find water and grazing, especially since it has been an exceptionally dry season this year.
Near and around our drilling sites at Thar Jath and Jarayan, the picture is very different. There are people everywhere trading goods or looking after cattle. We have rarely seen so much activity since we started working in the area in mid-1997. The reason is simple: as you reach Thar Jath the scenery suddenly changes from one of severe drought-inflicted plains to one of fields with ample water and rich green grass. The other reasons are that our sites are secure for the people to wander about and offer them the possibility to trade their goods.
As to the presence of Sudanese Armed Forces, the situation is as follows: there are small camps of soldiers every 4-5 kilometre along the road and one larger camp near our drill site at Jarayan. They are there as a preventive force, protecting oil companies and nearby civilians from rebels who have declared oil companies, their sites and staff, legitimate military targets. They do not engage in offensive actions against the local population and certainly have made no attempt to displace civilians near us, who, as mentioned before have grown in numbers lately.
I would also like add that contrary to some reports there are no check points along the road and there aren’t any restrictions imposed on the movement of civilians or humanitarian organizations by road. The road is being extensively used by civilians, to the point that a bus service is now operating between Thar Jath and Rubkona.
Furthermore, given our engagement in the area, we have been able to start implementing our community development and humanitarian assistance program. While our main concern is presently to provide the local population with fresh water (during the dry season) and some employment opportunities we are also working on providing support for health, education and agricultural needs."
Lundin Oil is currently completing the current work program which includes the drilling of one futher well and the acquisition of a seismic survey. All future programs will be carried out with the utmost respect for the local population and the environment as has been done in the past.
Lundin Oil is a Swedish independent oil company exclusively engaged in oil and gas exploration and production. The Company is producing oil and gas in the UK sector of the North Sea and oil offshore Malaysia/Vietnam. The Lundin Oil Group has a development project in Libya and ongoing exploration projects in Libya, Albania and the Sudan. The Company's shares are publicly listed on the Stockholm Stock Exchange (symbol "LOILB") and on NASDAQ (symbol "LOILY").
For further information, please contact:
Ian H. Lundin, President Tel direct: +41-22-319 66 00 or Maria Hamilton, Corporate communications Tel direct: +41 22 319 66 12
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