Chinese oil company assured of Unity State security day before SAF bombing
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By Bonifacio Taban Kuich

June 9, 2011 (BENTIU) - The Chinese-run oil company operating in Unity
State was assured that security was back to normal on Wednesday the
day before South Sudan officials accused the northern army of bombing
the state.

With a month left until South Sudan splits from the north, taking with
it the lions share of the country’s known oil wealth, officials from
the Greater Nile Petroleum Operation Company (GNPOC) visited Unity
State on Wednesday to announce they would be moving their headquarters
to the southern capital Juba. The Khartoum office will be run as a
sub-branch after Sudan splits in July.

South Sudan voted to separate from the north in a referendum that was
part of a 2005 peace deal that ended two decades of conflict. Despite
Sudan’s president saying Khartoum would recognise the result, fighting
in the disputed region of Abyei and the northern border state of South
Kordofan have raised fears that conflict could resume. Around two
million died in the last civil war.

The commissioner of Parieng County, Mabeak Lang, told Sudan Tribune on
Thursday evening that division 9 of the South Sudan army (SPLA) was
heavily bombed in Jaw payam [district] leaving 5 civilians dead and 15
seriously wounded.

Jaw payam border borders South Kordofan state, north of the shared
border, where north Sudan’s army (SAF) have been undertaking military
operations against northern units of the Sudan People’s Liberation
Army (SPLA) since last weekend.

The fighting came after SAF hold ordered all SPLA units to move into
South Sudan. During the civil war some groups north of the border in
South Kordofan and Blue Nile took up arms with the SPLA against
Khartoum. The SPLA and the soldiers both say they are northern
Sudanese and have refused to move south or disarm.

However, before the bombing had been reported Unity State governor
Taban Deng had given the visiting GNPOC officials assurances that the
state was ready to support an increase in production. Governor Deng
said they had agreed that GNPOC are going to work hard to support the
sub-contractors companies, in Unity State.

He told Sudan Tribune that security in the key oil-producing state was
now back to normal, despite rebel activities over the past few months.
He assured GNPOC that South Sudan wanted to increase productivity so
the government would have more resources to spend on public services
such as education, health care and roads.

Almost all the revenue of the South Sudan government comes from oil.
Under the 2005 peace agreement southern oil was split 50-50 with the
north. After independence on July 9 a new deal will have to be made
with Khartoum as all the refinaries and existing export routes run out
of North Sudan.

Suon Xianshing, the president of Greater Nile Petroleum Operation
Company, led the delegation to Unity State to discuss the company’s
oil strategy after of southern independence and the decline in
production in state.

The state-owned Chinese National Petroleum Corporation is the primary
stakeholder in GNPOC, which runs a number of oil fields north of
Bentiu. Sudan, India, and Malaysia are also junior partners in the
consortium.

Xianshing, the new president for the company, told Sudan Tribune on
Wednesday that GNPOC plans to build strong relations with both
northern and southern officials in a common goal to increase
productivity.

He added that he hoped the “oil industry will contribute [to]
development” in the state, promising to move the heaquarters to Juba
and hire more southerners.

South Sudan holds 75%-80% of Sudan’s oil, but oil companies worked
closely with the Khartoum government during the war. South Sudanese
who lost homes or family members during violent campaigns to clear
lands for oil exploration have not been compensated.

During the six year period of the Comprehensive Peace Agreement, on
the whole, oil companies have failed to build strong ties with the
southern government. Now, with the nation splitting, they no longer
have any choice but to improve relations with South Sudan.

(ST)

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