
Executive Summary III
The Company's Involvement in Sudan
A Report On The Lundin Case
9BR CHAMBERS & RPC SOLICITORS
Prior to independence in 2011, more than 95% of Sudanese land legally belonged to the State. Sudan’s development of its oil resources was not only legitimate, but it was also lawful and in the interest of the State. The extent of the Company’s involvement in the State’s development of its natural resources was however extremely limited. Block 5A was approximately 30,000 sq km of which a third was swampland with significant additional areas of this region being also flooded during the rainy season. Thar Jath, the site of Lundin’s drilling in Block 5A, as well as the Thar-Jath area were entirely flooded during the rainy season. Before the building of the All Weather Road (an elevated gravel road to avoid flooded areas), the lack of roads in this area limited Lundin’s exploration activities. In the six-years the Company was in southern Sudan, it only operated approximately 20% of the time.
Following discussions with central and local authorities and the signing of the KPA, the Company assessed and expected to be operating in a peaceful environment in Sudan. The backdrop of EU and UN constructive engagement and the absence of international sanctions encouraged the understanding that the economic benefits from oil and other international commercial sector investments would help Sudan to develop and improve socio-economic development for its people. International investment across many sectors including forestry and agricultural development was actively being promoted and sought by the international community as a means of building peace. The Company was one of multiple international oil and global oil services companies present in Sudan in the late 1990s.
From the end of 2001, the Company suspended operations and made their resumption conditional on a permanent peace agreement. After this point, it did however maintain its community and humanitarian programmes, until it sold its interest in the Block.