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Consortium suspends oil exploration due to fighting in Sudan

SPECIAL TO WORLD TRIBUNE.COM
Tuesday, January 29, 2002

CAIRO Ñ A foreign energy consortium has suspended oil exploration and development in southern Sudan amid fears of being targeted by rebels.

It was the first time that a foreign oil company has halted activities in the war-torn south amid threats from the Sudanese People's Liberation Army. The announcement came less than a week after the start of a limited ceasefire arrangement between the regime in Khartoum and the SPLA.

The consortium consists of Malaysia's state-owned oil company, Petroliam Nasional Bhd, known as Petronas, Sweden's Lundin and Austria's OMV. The consortium announced it was suspending oil drilling operation at its Block 5A concession. Executives cited concerns for the safety of its employees and installations.

"Until now, we have been able to operate under good and secure conditions in the area," Lundin Petroleum chief executive officer Ian Lundin said in a statement. "But a recent deterioration has led us to decide this temporary suspension."

Lundin did not cite any specific threat to the consortium. The SPLA had warned foreign companies that it would be targeted for attack unless they end operations in southern Sudan. The rebels asserted that Sudan's oil revenues are financing the war in the south.

The oil executive stressed that the consortium would continue with plans to develop a new area, called Block 5B. The consortium is said to produce more than 200,000 barrels of oil a day.

The Malaysian firm has a 28.5 percent stake in a joint venture with the Swedish Lundin and Sudan's OMV. Lundin is the senior partner with 40.4 percent and OMV has 26.1 percent of the project. Sudapet has a five percent stake.

Companies from Canada and China have also been involved in Sudan's oil production. But they did not announce any changes.

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