In 1996/1997, there were clear signs that Sudan was working towards peace. Sudan was opening up to foreign investment and the European Union was actively encouraging European businesses to invest in the country. The IMF was working with Sudan on economic reforms and structural adjustment programmes. It was in this context, and with the upcoming signing of the Khartoum Peace Agreement in April 1997, that the Company entered into an Exploration and Production Sharing Agreement (EPSA).

 

The KPA secured peace between the Government of Sudan and prominent Nuer leaders and southern stakeholders in Unity State, as well as other factions of the SPLM/A. The KPA gave the Company confidence that it would be able to operate in a peaceful and stable environment.

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However, the KPA did not hold and there was a resumption of violence in southern Sudan, including in and around Block 5A between the various regional groups and factions and at times between the Government of Sudan and the SPLM/A. It is important to note that distinctions between factions and groups was never ‘neat’ and alliances were fluid and ever changing. Experts on Sudan recognised that it was difficult to ascertain specific allegiances or objectives of the various factional groups and individuals.

 

Although the Company generally refrained from getting involved in the political affairs of a country, Carl Bildt, who was the UN Secretary-General’s Special Envoy for the Balkans from 1999 to 2001 and a member of the Company’s Board volunteered to use his vast experience to promote peace in the region. Bildt met with a number of high-level representatives from all sides, as well as representatives of the key nations acting as peace mediators, such as Kenya, Norway, the UK, and the USA. Sweden as a member of the Inter-Governmental Authority on Development (IGAD) Partner’s Forum Support Group for Sudan was also involved in the peace process. During the 1997 peace discussions, Sweden provided significant support including contributions to the IGAD peace fund. Sweden was publicly and actively engaged and directly supported events taking place in Sudan to ensure peace, which provided a clear lead for the Company to follow.

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The Company’s consultations in relation to peace were held with an array of stakeholders, from the Sudanese government, local government, local Nuer communities, the Swedish government, the humanitarian community, the UN Commission on Human Rights, NGOs, think tanks, the media, negotiators, including representatives of southern Sudan, and the local government of Unity State. The Company also maintained a dialogue with the Swedish Authorities as to their operations in Sudan and continued that dialogue when criticism of their presence entered into the media in 2001. At no stage did the Swedish Government advise, direct or otherwise intervene to halt the Company’s exploration and appraisal activities. Neither the UN nor the Swedish Government in the spring of 2001 made any requests or demands that the Company cease its activities in Sudan.

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It was not until many years later in 2010 that the Swedish Prosecution Authority embarked on an investigation into the Company’s activities in Sudan. This was notwithstanding the fact that the Company had made its own rigorous, wide ranging and transparent investigations and found the substance of the NGO allegations to be untrue.