Africa News blog

African business, politics and lifestyle

Breaking down the walls – Sudan’s oil transparency push

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It was a just another seminar on transparency in the oil sector. Seemingly banal. But this was being held in Khartoum, involving live debates between northern and southern Sudanese officials, a minerals watchdog and the international media, who were allowed free access to publicly grill those who administer what has for years been an absolutely opaque oil industry. What emerged was surprisingly positive and all walked away feeling that — at least until the Jan. 9, 2011 referendum on southern independence — this was the first step towards finally unpicking all the stitches that have sewn the sector tightly shut to outsiders. We are “PR stupid” said the newly appointed Minister for Energy from the former southern rebel Sudan People’s Liberation Movement Lual Deng who instigated the forum. He said this to explain the discrepancies in oil production and oil prices uncovered by the Global Witness NGO whose report “Fuelling Mistrust — the need for transparency in Sudan’s oil sector” provoked the discussion. These include figures published by the ministry of finance web site of oil revenues with little clarification of how they had been calculated, even citing barrels of Sudanese black gold selling for as little as 15 cents a barrel. It also found discrepancies between China’s CNPC who dominates Sudan’s oil sector dogged by U.S. sanctions, and Sudan’s energy ministry output figures. Those figures were easily explained as the difference between gross production and net of water, gas and solids on Wednesday. But the fact an international giant like CNPC is publishing undefined production figures in an annual report provoked concern even from Sudanese officials. And why did it require such an elaborate showcase to provide such a simple response? Minister Deng’s answer was the “PR stupid” line. After months of chasing and waiting in vain for a reply from The government or CNPC to the discrepancies in oil output, including having the phone hung up on them by the Chinese, Global Witness went ahead and published their work. “Next time you should just call us to verify the figures,” was CNPC’s ironic response, with the presenter who had flown in from Beijing for the forum, flashing on a PowerPoint screen the email and mobile number of CNPC’s country manager in Sudan. Just five minutes earlier that same manager had declined my request for a meeting or to share his contacts “in the interests of transparency.” One of dozens of attempts I have made over the years to extract any information from the state-owned firm. I wonder how long he will keep that mobile number. But if you sifted through the barbed comments by Sudanese officials directed at the Global Witness reps and the attempts by CNPC to ridicule the figures, important progress was made. Sudan said it would commit to the Extractive Industry Transparency Initiative, to which CNPC gave its support. It also agreed to a full audit back to 2005 and the ministry said it would publish daily production figures. It also gave French oil giant Total a public guarantee that whether or not the south votes to secede in just five months, its oil concession contract would be honoured. If all this happens, it will be a massive step towards opening up Sudan’s taboo oil sector which could convince those elusive big European companies who left during Sudan during the north-south civil war to come back and invest. Do you see European companies investing in Sudanese oil and gas? If Europeans come back in should U.S. sanctions be lifted to allow American firms to compete for the spoils? Is Sudan – likely to split into two countries in five months –worth the risk for investors?

oilIt was a just another seminar on transparency in the oil sector. Seemingly banal.

But this was being held in Khartoum, involving live debates between northern and southern Sudanese officials, a minerals watchdog and the international media, who were allowed free access to publicly grill those who administer what has for years been an incredibly opaque oil industry.

What emerged was surprisingly positive and all walked away feeling that — at least until the Jan. 9, 2011 referendum on southern independence — this was the first step towards finally unpicking all the stitches that have sewn the sector tightly shut to outsiders.

We are “PR stupid” said the newly appointed Minister for Energy from the Sudan People’s Liberation Movement, Lual Deng, who instigated the forum.

In search of the rarest elephants

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Dawn was breaking and wisps of mist rising through the dense trees as wildlife expert and author Gareth Patterson and I set off into the forest, in search of one of the last remaining elephants of South Africa’s Knysna forests.

The Knysna forest, an expanse of 121,000 hectares of  forest managed by South African National Parks, is home to the last remnants of the once abundant herds of Cape Bush elephants that inhabited the Southern Cape.

Life with the lions

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Kenya’s Maasai warriors are known for being fearless lion killers but times have changed and the country’s lion’s population is in danger of being wiped out. Now the Maasai in southern Kenya are taking part in an initiative to preserve the big cats.

For thousands of years the Maasai co-existed with huge herds of wildlife. Their lion-killing rituals kept down the number of lions preying on the game while their fearsome reputation as warriors kept the herds safe from other humans. The result, Kenya’s wildlife heritage is a wonder of the modern world.

Saving Kenyan forest. Is it a turning point?

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mau-forest3.jpgAfter a decade of rampant destruction of the Mau forest water catchment in western Kenya, the country’s coalition government seems firmly united in trying to save the complex before more serious damage is inflicted on the economy.

U.N. officials say this is no longer simply an environmental issue but something that has huge importance for the whole country. Already two of the top three foreign exchange earners — tourism and tea — are feeling the impact of falling water levels which have also forced the postponement of a major hydro-electric project. 

Birds and biofuels at odds in Kenya

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tana-demonstration.jpgThe road to Kenya’s Tana River Delta from the Indian Ocean resort of Malindi is a lonely stretch of tarmac punctuated only by road blocks manned by armed police.

Few people from the outside world come this way.

Most foreign and local holidaymakers heading for the popular Lamu Islands prefer to fly rather than use the road.

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