---------- Forwarded message ---------
From: John Ashworth <[email protected]>
Date: Thu, 30 Mar 2017 at 8:55 PM
Subject: [sudans-john-ashworth] Oil Workers as Targets in South Sudan
To: Group <[email protected]>


Oil Workers Seen as Target in New Phase of South Sudan's War

by Okech Francis and Nizar Manek
Bloomberg
30 March 2017, 02:01 GMT+330 March 2017, 18:02 GMT+3

- Six staff seized in crude-rich north of the country this month
- Insurgents’ actions seen as effort to choke key revenue source

Crude oil brings in the cash to keep South Sudan’s army fighting. That
may have made oil workers a target for rebels waging the African
nation’s three-year civil war.

The seizure of six workers, including three foreigners, in the
oil-rich north this month is the latest blow for authorities trying to
exploit sub-Saharan Africa’sthird-biggest reserves. Insurgents, who
said they captured the two Indians and a Pakistani during fighting,
described such actions as a reminder to foreigners to stay away from
oil-production zones. South Sudan’s crude is mainly pumped byChina
National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and Oil &
Natural Gas Corp. of India.

While kidnappings previously occurred in Sudan, it seems “this violent
trend is now moving south as the opposition strives to find ways to
undermine the South Sudanese government,” said Luke Patey, a
researcher at the Danish Institute for International Studies. “Oil
remains the only tangible source of revenue for South Sudan’s
government. Even at reduced production levels, the government’s war
efforts against opposition forces depend on it.”

Companies that extract oil in Africa’s more restive countries,
including sub-Saharan Africa’s two biggest producers, have seen
employees become targets before. In Nigeria, militants in the Niger
River delta made fortunes in the 2000s ransoming foreign workers.
Angola has also seen spates of kidnapping.

Contracting Economy

Oil production in South Sudan, the world’s youngest country, has
plunged by at least a third to about 130,000 barrels a day since
conflict erupted in December 2013. The decline, combined with a drop
in prices, has devastated the economy, with annual inflation reaching
almost 500 percent and gross domestic product forecast to shrink more
than 10 percent this year, according to the International Monetary
Fund.

The war has claimed tens of thousands of lives, with both government
forces and rebels accused of atrocities. A famine, described by the
United Nations as man-made, has been declared in two northern
counties. The Paloch oilfield, the only one still operational, is in
the far northeast.

Rebels may “have decided to hit where it hurts the most -- oil
installations, assets and workers,” said James Alic Garang, a senior
economist at the Ebony Center for Strategic Studies in the South
Sudanese capital, Juba. “That is a wicked strategy on their part
because it goes a great length to harm the productive potential of the
nation.”

The staff seized in March work for Dar Petroleum Operating Co., whose
biggest stakeholders are CNPC and Petronas. No one at Dar’s office in
Juba was available to comment. The communications department said it
would begin considering interview requests April 3.

Disruption Tactic

“The opposition is continuing a tactic of disrupting and dissuading
renewed engagement from oil companies in South Sudan,” Patey, who
researches the industry at the Copenhagen-based DIIS, said by email.

Petroleum Minister Ezekiel Lul Gatkuoth said plans to boost output
won’t be affected and the government will provide “maximum” safety.
“The loopholes that made this happen have been filled,” he told
reporters March 21.

Representatives of the main rebel group, the Sudan People’s Liberation
Army in Opposition, or SPLA-IO, who are based outside the country
denied the group has a policy of kidnapping foreigners, even after
insurgents seized workers in areas where they said fighting occurred.

“The government is putting these people in harm’s way knowing that it
is untenable for them to work there,” Mabior Garang Mabior, a rebel
spokesman, said by phone from a location in Tanzania he wouldn’t
disclose. The SPLA-IO has warned “companies that they shouldn’t be
dealing with the government of South Sudan, that they shouldn’t be
operating there, and there is war,” he said.

Pakistan’s ambassador to four East African countries including South
Sudan, Asghar Ali Golo, and India’s top diplomat in South Sudan,
Srikumar Menon, both said by phone that representatives of the
International Committee of the Red Cross visited the three foreign
workers in captivity about a week ago.

Following Case

A Red Cross spokeswoman, Alyona Synenko, said the organization is
following up on the case but won’t comment further. Presidential
spokesman Ateny Wek Ateny said there was no further information on the
South Sudanese citizens who were seized.

The Pakistani national, Ayaz Hussain Jamali, was captured March 18 at
Gumry oilfield by gunmen who “killed the South Sudanese guard,”
Jamali’s cousin, Zakir Bullo, said by phone from New York, citing
information he said he received from Dar Petroleum. Golo and Menon
said so far they’ve only been in contact with South Sudan’s government
and that rebels haven’t made any ransom demands.

The insurgents will probably continue using “kidnapping as an
operational tactic” to forward their political agendas, said Nicole
Elliott, special risks analyst at red24, a crisis-management company
in Johannesburg.

https://www.bloomberg.com/politics/articles/2017-03-29/oil-workers-seen-as-target-in-latest-phase-of-south-sudan-s-war

END
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John Ashworth

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