Consortium suspends oil exploration due to fighting in Sudan
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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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