Sudan’s oil industry requires proper audit systems: experts
By Julius N. Uma
December 12, 2010 (JUBA) – Sudan’s federal government and its southern counterpart should establish a fully-fledged audit system to cater for the oil industry’s socio-economic, environmental, and security impact after the south’s referendum on independence, a two-day oil conference resolved.
While speaking on petroleum policy during the two-day event held in Juba, the south Sudan capital, Jill Shankleman, a socio-political and environmental risk management consultant said all oil companies intending to undertake related projects require comprehensive social, environmental and health impact assessment.
“Any oil company that plans to construct oil refineries, pipelines or any other oil-related activities in a given area must carry out a thorough environmental impact assessment in line with existing regulations,” Shankleman said.
The independent impact assessment, she added, should later be followed by the development of an environmental management plan, which will guide their mode of operations in the communities where they exist.
Rev. James Nitres, Assistance Mission for Africa (AMA) Director observed that much as the concept of compensation remains a key element among communities, most oil exploration companies largely ignore national interests, thus making oil grievances part and parcel of south Sudan’s historical problems.
“These oil exploration companies should know that national interests start with the interests of individuals in a given area. Unfortunately for our south Sudan case, these oil companies usually come into these areas with their security personal and immediately begin their activities,” Ninrew said.
According to the AMA Director, Sudan’s oil-producing areas will soon become the “the next Niger Delta”, if the current problems such as poor employment policies, lack of compensation of communities, unequal distribution of oil revenues, among others are not properly addressed.
However, in his address on the current security situations and recommendations for the future, Col. Phillip Aguer from Juba University said that government remains committed towards establishing a coordinated and institutionalized security mechanism to cater for the oil sector.
The conference, which was organized by the European Coalition on Oil in Sudan (ECOS) and Sudan Council of Churches (SCC) from December 7-8, attracted over 100 attendees, including representative from the Government of Southern Sudan, members of the diplomatic community, representatives of the governments of Unity State and Upper Nile State, members of the National Legislative Assembly, legislators, the Chinese National Petroleum Company, Total S.A, among others.
(ST)