Africa News blog

Breaking down the walls – Sudan’s oil transparency push

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?

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 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.

Ethiopia elections: Can the EU effectively monitor?

The Ethiopian press corps put Thijs Berman, the EU’s chief observer for the country’s May 23rd elections, under some serious pressure at his first press conference since arriving last Wednesday – less than five weeks before the poll.

“Won’t you just rubberstamp a precooked election?” said one.

“How can you do your work with less than five weeks left?” another.

“You have 150 observers for 43,000 polling stations?!” a third.

Berman, a seasoned election monitor who has Afghanistan’s mess of a 2009 poll on his CV, took it all in his stride and even showed flashes of humour.

Africa? No thanks.

The pivotal marketing position when South Africa were still bidding for the 2010 World Cup was the assertion it would be a tournament for all of the continent. ‘Africa’s bid’ was the pay-off line used throughout the successful campaign.

Using famous footballing personalities from around the continent, South Africa garnered widespread support with its all-inclusive approach against their Arab rivals in the race to win the right to host the event.

The promised land?

Several hundred Africans have drowned off the coast of Libya in an attempt to escape to a better life in Europe.

The head of the United Nations refugee agency says the tragedy marks a grim start to what he calls the “smuggling season”, when the weather gets better and the perilous sea voyages pick up again after the winter.

Did Dalai Lama ban make sense?

Organisers have postponed a conference of Nobel peace laureates in South Africa after the government denied a visa to Tibet’s spiritual leader the Dalai Lama, who won the prize in 1989 – five years after South Africa’s Archbishop Desmond Tutu won his and four years before Nelson Mandela and F.W. de Klerk won theirs for their roles in ending the racist apartheid regime.

Although local media said the visa ban followed pressure from China, an increasingly important investor and trade partner, the government said it had not been influenced by Beijing and that the Dalai Lama’s presence was just not in South Africa’s best interest at the moment.

from Global News Journal:

What should the world do about Somalia?

Islamist militants imposing a strict form of Islamic law are knocking on the doors of Somalia's capital, the country's president fears his government could collapse -- and now pirates have seized a super-tanker laden with crude oil heading to the United States from Saudi Arabia.

Chaos, conflict and humanitarian crises in Somalia are hardly new. It's a poor, dry nation where a million people live as refugees and 10,000 civilians have been killed in the Islamist-led insurgency of the last two years. A fledgling peace process looks fragile. Any hopes an international peacekeeping force will soon come to the rescue of a country that has become the epitome of anarchic violence are optimistic, at best.