ECOS report: UNPAID DEBT. The Legacy of Lundin, Petronas and OMV in Sudan, 1997-2003

ECOS calls for Oil Company Investigation Over Sudanese Human Rights Abuses Fatal Transactions member IKV/Pax Christi, as part of a group of aid agencies that worked in Sudan during the civil war, reporting together as the European Coalition on Oil in Sudan (ECOS), has called for an investigation into the role played by a consortium of oil companies in the conflict and their possible complicity in the commission of war crimes and crimes against humanity.

ECOS’ report, UNPAID DEBT: The Legacy of Lundin, Petronas and OMV in Sudan, 1997-2003, says that the start of oil exploration in Block 5A in Southern Sudan set off a spiral of violence as the Sudanese government and forces loyal to them set out to secure and take control of the oil fields in that block. Thousands of inhabitants died, and almost 200,000 people were violently displaced. The terror began after the Sudanese government signed an oil exploration contract with a consortium comprising Swedish company Lundin Oil AB, Petronas Carigali Overseas from Malaysia, OMV (Sudan) Exploration GmbH from Austria, and the Sudanese company Sudapet Ltd.

There should be no more war over oil in Sudan. The parties to the 2005 Comprehensive Peace Agreement (CPA) are discussing arrangements for the future management of the oil industry. These should include compensation, and the oil companies and their home governments can play a key role in bringing that about. Moreover, ECOS contends that it is their duty. A compensation process that will do justice to the victims and is designed to create the conditions for reconciliation and forgiveness, would bring crucial peace dividends and contribute to a much needed environment of trust in the oil-producing areas and beyond.

Therefore, to promote peace and achieve justice for the victims of the oil war in Block 5A, ECOS recommends that:
1. The Governments of Sweden, Austria, and Malaysia investigate the alleged violations of norms of international law by their national oil companies.
2. The Governments of Sweden, Austria, and Malaysia account for their failure to prevent the alleged human rights violations and international crimes.
3. The Governments of Sweden, Austria, and Malaysia ensure appropriate compensation for all persons whose rights have been violated in the course of the war for control over Sudan's oil fields.
4. The international guarantors of the Comprehensive Peace Agreement (CPA) take urgent initiatives to ensure implementation of the right to compensation as established by the CPA.
5. The members of the Lundin Consortium open all records and fully cooperate with investigations into their role in the reported events.
6. The members of the Lundin Consortium create enabling conditions for reconciliation with victims of the oil war, starting with the allocation of their fair share of compensation for the victims, which ECOS estimates at US$300 million.
7. Investors divest from all companies that do not fully cooperate with investigations into credible allegations of complicity in international crimes or fail to compensate the victims of Sudan’s oil wars pursuant to the terms and conditions of the CPA and the UN Guidelines.

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