Peace deal parties vie for oil Ministry control in Sudan

By Catherine Hunter, Global Insight Limited.

Aug 25, 2005 — The two parties from Sudan’s peace deal, including the central government and former southern rebels, are both pushing for control of the country’s energy ministry as part of negotiations for a new government to include both players, according to this year’s peace deal. The central government, represented by the ruling National Congress Party, is hoping to hold onto the brief, although the new southern government says that it should take control given the location of much of Sudan’s oil resources in the south of the country. The country is currently producing over 350,000 b/d of oil, although it has set back increases to 500,000 b/d to the year-end, six months later than expected.

Significance: As in Iraq, the Oil Ministry in Sudan represents a route to wealth and control over a key resource, making it a contentious brief in any power division. That the central government would give up the brief, given concessions on the division of oil revenues and oil-policy sharing, seems unthinkable, although this will be an interesting point to watch in determining the balance of power in the sector for the interim six-year power-sharing period.