Sudan OIL & CONFLICT TIMELINE- 3

من طرف **Admin** الأحد مايو 10, 2015 3:36 pm

1996

January 96 China votes against Sudan in the UN Security Council (it abstains on 26 April).

April 1996: Government’s Supreme Council for Peace puts forward its Political Charter, a non-binding general framework for a political solution to the civil conflict.

April 96: President Clinton signs the Anti-Terrorism Act, barring Americans from engaging in financial transactions with governments on the US list of terrorism sponsors, including Sudan.

26 April 1996: United Nations imposes diplomatic sanctions on Khartoum for its involvement in terrorism. In the vote, China abstains.

Arakis begins production from nine wells on the Heglig field. An average of 2,000 b/d is processed and consumed domestically.

Officials from China's CNOEDC meet Arakis Energy executives, including President John McLeod in Vancouver.

Arakis needs around US$750,000 for the pipeline project. It announces a big new discovery, and pays to take a score of mainly US - but also British - financiers on a junket to Sudan.

June 96: Arakis / State Petroleum starts limited production of 10-20,000 b/d from Heglig, transporting crude by truck and river barge to topping plant refinery near El Obeid.

29 July 96: Government troops attack SPLA positions at Delal Ajak, west of the Nile. Lam Akol's SPLA-United warns Arakis Energy and its British financier, Venture Guarantee Ltd to pull out immediately; says it will not allow Khartoum to 'steal' oil. The government aim is to secure the passage on the White Nile of barges to move crude oil from the Adar-1 field from Melut to Kosti further north. From Kosti, the oil would be sent by train to a refinery at al-Obeid.

31 July 96: Arakis chief executive John McLeod says company is taking the threats seriously.

August 96: US Treasury issues regulations to block deals that would help government-backed terrorism. The "Oxy loophole" (certain business transaction exemptions theoretically enabled Occidental Petroleum to pursue an interest in Sudan).

1 August 96: Arakis statement says its 25-year agreement with the government of Sudan is still valid and that it has spent more than US$100m developing Sudan concessions.

"Recruited through an agency known as Executive Outcomes, mercenaries will be employed directly by Arakis and will operate independently from the Sudanese authorities," alleges Sudan Democratic Gazette

Two renegade SPLA commanders, Riek Machar and Kerubino Kuanyin Bol, agree with regime to set up a buffer zone between SPLA forces and the government forces directly protecting the oil fields. Kuanyin moves his forces out of Gogrial town and heads towards Twic county in late August, but is ambushed by the SPLA. Splintered SPLA no longer has large numbers of forces in the Nuer territory of the Bentiu area.

October 96: In Upper Nile's Adar Yale field, private Qatari-Sudanese consortium Gulf Petroleum Company drills and reopens existing wells.

October 1996: Opposition claims Arakis International is planning to employ "white mercenaries" from South Africa as a security force. Arakis' John McLeod says the Sudan military provides protection, and the firm employs its own security and safety coordinators who work as go-betweens between company and army. He says he has never talked to Executive Outcomes.

30 October 96: Arakis / State Petroleum estimates its fields have probable and proven reserves of 600m barrels.

November 96: John Garang warns that SPLA forces will attack Adar Yale oil field.

November 96: Khartoum government excludes Occidental from consortium, angered by Clinton government providing aid to 3 neighbouring countries that help the SPLA/NDA forces. (US provided $20m in surplus military equipment to Ethiopia, Eritrea and Uganda.)

4 November 96: Arakis subsidiary State Petroleum secures framework agreement with Sudan government on developing concession near Bentiu.

Negotiations start on a "modified production sharing agreement", as it searches for other investors for $1 billion project for field development and pipeline to Port Sudan.

4 November 96: US sources say Khartoum "looking favourably on a proposal by potential investors" for a security operation mounted by Executive Outcomes. UK sources say Bashir has approved initiative and that any private force would report to and be paid by Khartoum government, said to be interested in private training for Riek Machar's men following signing of Peace Charter. EO deny any involvement.

4 November 96: Branch Energy said to be interested in Arakis project.

December 1996: Unable to finance exploration, development and pipeline alone, Arakis enters into a consortium, the Greater Nile Petroleum Operating Company (GNPOC). It consists of Arakis (25% share and field operator), China National Petroleum Corporation (40%), Petronas of Malaysia (30%) and the Sudanese national oil firm Sudapet (5%).

John McLeod says the Chinese partners "incorporated additional benefits to the Sudan government, which essentially got them their participation." Partners will have to make capital expenditures on the project until they equal Arakis' expenditure to date.

28 December 96: Three Arakis board members quit in row over compensation and are replaced.

1997

1997: Sudan government adopts "Islamic" constitution.

Arakis' Lutfur Khan appoints former Sudanese finance minister Abdel Rahim Hamdi to a committee advising the board of directors of Arakis. (Committee no longer functioning by February 1998). Arakis sells its last remaining US asset, a Kentucky natural gas property.

January 97: Arakis announces third major oil find, El Nar2 (after El Toor and South Toma in 1996) .

January 97: Washington Post claims US government secretly granted exemption to Occidental Petroleum interest in Sudan project, says Sudan has estimated 3.5bn bbl. Abolitionist Leadership Council calls on Congress to block Occidental involvement and says "Khartoum is building a security force… to protect [the oil project] from its rightful owners."

February 97: Riak Machar, ex-SPLA head of the South Sudan Independence Movement, officially switches sides and joins Khartoum government against SPLA.

February 97: Khartoum says Eritrean and Ethiopian troops are fighting alongide the rebel forces.

Sudan faces a 900 million dollar deficit. Oil imports rise to nearly US$400m/yr, representing more than 25% of the country's total imports, while total exports reach US$600m/yr.

National Democratic Alliance and SPLA forces open eastern front, seizing patches of territory between the Red Sea and the Blue Nile, threatening the Roseires hydroelectric dam near Damazin.

February 1997: Sweden's IPC / Lundin Oil signs production-sharing agreement for exploration of Block 5A, just south of Arakis' Unity fields. Lundin later brings in Petronas of Malaysia, OMV-AG of Austria and the Sudan government's Sudapet.

27 February 97: Arakis officially enters into Greater Nile pipeline consortium agreement.

February 97: Lundin family buying Arakis stock

March 1997: Bashir inaugurates production from Adar Yale field - 5,000 bl/d, under consortium led by Qatar's Gulf Petroleum Corporation.

China National Petroleum Corporation begins exploration and development on the Sharaf, Tabaldi and Abu Jabra fields (Block 6).

March 97: Sands Petroleum AB (Lundin) files with SEC to say it holds 8.4% of Arakis

21 April 1997: Khartoum Peace Agreement signed between government and six splinter rebel groups - but mainstream SPLA is absent.

9 May 97:- Arakis adds Lukas Lundin of Sands Petroleum AB to its board.

By mid 1997 there had been more "significant discoveries" at Toma South, El Toor and El Nar. The formation of the pipeline consortium resulted in a fourfold expansion of the exploration and development program from the 1996 level, with four drilling rigs in the concession either drilling or being rigged up to drill, and three seismic crews actively acquiring data.

July 97:- Arakis appoints new pipeline manager David Hunter, who used to work for Occidental.

17 July 97: Austria's OMV (Mineral and Oil Administration) joins a four-member consortium for oil exploration in Block 5A led by IPC (Lundin), the second consortium to begin oil exploration in Sudan this year.

30 July 97: James Taylor, then executive vice-president for international exploration of Occidental Petroleum, joins Arakis board.

July 97: 1,500 km pipeline budgeted at US $1bn US to build; concession is estimated at 1bn barrels of oil

16 September 97: Ernie Pratt resigns from Arakis after operating responsibility in Sudan is transferred to Greater Nile Petroleum Operating Co.

18 September 97: Lutfur Rahman Khan says government of Sudan is stable and fully able militarily and politically to hold the oil fields…

26 September 97: Kenneth C. Rutherford resigns as finance and chief financial officer to undertake private venture and is replaced by Tom G. Milne, formerly of Nova Corp. Calgary.

October 1997: Arakis awards contracts for manufacture of 28" line-pipe to China Petroleum Technology and Development Corporation (1110km) and Mannesmann Handel AG of Germany (500km)

November 97: Canadian Ambassador Gabriel Lessard writes to Arakis asking them to reconsider their presence in Sudan

4 November 97: President Clinton signs executive order under the International Emergency Powers Act calling for all Sudanese assets in the US to be blocked, and imposes a ban on bank loans and all US trade with the country. Sudan cuts banking links with US banking establishments in retaliation. US Secretary of State Madeleine Albright says sanctions were imposed because of Khartoum's "continued sponsorship of international terror, efforts to destabilise neighbouring countries and abysmal record on human rights." Sudan's ministry of external trade says Sudanese-US trade amounts to only five per cent of Sudan's total exchanges. Future international transfers through American banks will be averted by transacting with other international banks "in foreign currencies other than the US dollar."

Hydroelectric dams on the Nile's second and fourth cataracts are proposed. China and Sudan sign initial financial agreement on controversial Kajbar Dam, opposed by Nubians.

December 97: Opposition NDA issues official warning to users of the Khartoum-Gedaref-Kassala-Port Sudan highway that it is now a military target.

1998

1998: Arakis plan to build $750m, 28", 1,610km pipeline still on track.

13 January 1998.: Arakis awards Argentina's TECHINT International the contract for construction work on the Port Sudan marine terminal, pumps and SCADA, Supply contracts for the pumps and drivers are awarded to Weir Pumps Ltd of Glasgow, Scotland, and for generators to Allan Power Engineering Ltd, England. China Petroleum Engineering Construction Corporation will build the pipeline and field facilities.

February 98: Two pro-government forces - under Gen Paulino Matiep Nhial and USDF leader Riek Machar - fight each other in the Bentiu area, "close to drilling operations of the China National Oil Company."

February 1998: Wau, capital of Bahr al-Ghazal, surrounded by Kerubino's forces.

Gabriel Lessard, Canada's ambassador to Sudan, warns that Arakis workers are in peril; Arakis admits "reduced comfort level".

February 98: First Vice-President Lt-Gen al-Zubeir Mohammad Saleh and ex-SPLA Cdr Arok Thon Arok die in plane crash near Ethiopian border.

February 98: Arakis appoints Raymond P. Cej as its new president and CEO. Previously chairman and CEO of Kyrgoil Corp. of Calgary, and former senior operating officer with Shell Canada, he replaces Lutfur Rahman Khan, who was acting president and will remain as chairman.

February 98: Arakis pays insurance company $3.5m to cap its exposure in US securities lawsuits and pays a $250,000 penalty to Vancouver Stock Exchange over Arab Group International (AGI) financing farrago.

2 March 98: State Petroleum writes to Sudan government assuring them the structure and management of State and Arakis will not change substantially. Sudan government issues 60-day notice of possible termination of Exploration and Production Sharing Agreement, citing March 2 letter. The notice is subsequently withdrawn.

May 98: Arakis predicts commercial production of 150,000 b/d to start mid-1999 and completion by same date of 1,500-km pipeline with daily capacity of 250,000b/d

May 98: Arakis says reserves on its Unity, Heglig and Kaikang concessions proven and probable are 428.9m bbl; says proven reserves of 271.3m bbl are sufficient to meet production target of 150,000 b/d subject to additional drilling.

May 98: François Misser in Germany's Die Tageszeitung writes that the GNOP consortium wants to hire 3,000 armed fighters from Iran, and an additional 600 from Malaysia. The men would allegedly be under the supervision of a South African company. "Soldier Of Fortune" magazine guesses that this could be Executive Outcomes, reported to have worked with Arakis before, although Arakis denies this.

4 May 98: Oil pipeline construction begins at eight separate locations along the route

May 98: A 50,000-b/d refinery at al-Jayli begins construction with assistance from China's CNPC.

June 1998: SPLA captures Mabaan, Blue Nile province (on the road to Melut) and the town of Ulu, about 150 km SW of the strategic eastern town of Damazin and close to the installation at Adar Yale field.

Violence forces aid workers to evacuate parts of Western Upper Nile

Gulf Petroleum Company increases Adar-Yale production to 10,000 b/d. Sudan producing between 18,000 and 20,000 barrels of oil a day.

June 98 - Arakis says its two properties in Sudan may hold about three billion bbl of oil, according to estimates made by Chevron and Shell when they were exploring the property.

June 17: Arakis adds Ian H. Lundin and Fred C. Coles to board of directors

July 1998-December 1998 Fighting in Leer and Mankien districts of Western Upper Nile (Block 5A) keeps WFP aid workers away for five months.

24 July 98: Take-over offer for Arakis by Canadian firm Talisman Energy (formerly BP-Canada). Agreement to the deal comes from Lundin Oil AB (newly-formed in merger between Sands Petroleum AB and IPC), which holds 10.8% of Arakis, and State Street Research (which holds 8%).

17-18 August 98: Talisman agrees to purchase Arakis Energy Corp for stock valued at US$175.7m - $200m, committing the company to $760m of capital spending on Sudan project over next 2 years.

20 August 98: US missile attack on Khartoum's al-Shifa chemical plant - doubts raised about the completion of the Arakis purchase.

21 August 98: Talisman's Jim Buckee, former BP planning manager, "surprised and concerned" by Shifa attack, and seeking more information.

31 August 98: Talisman announces it is advancing $22 million to Arakis to meet funding obligations.

September 98: SPLA offensive produces no significant gains in the south and is successfully repulsed by government forces.

Attitudes in Khartoum harden. Confident of the efficacy of military action against his enemies, Turabi threatens to put Sadiq al-Mahdi on trial.

October 1998: Sharif al-Tuhami, Irrigation Minister, resigns his position. Allegations had appeared in the Arabic press that he helped his son Abdul-Rahman obtain a contract for his construction company Maban in the pipeline project.

7 October 98: Arakis shareholders, Court of Queen's Bench of Alberta, Sudan government and members of the Greater Nile Petroleum Operating Company consortium approve sale to Talisman. Talisman completes purchase of Arakis for Ca$277m, plus advance of Ca$46.5m to meet capital requirements

December 98: Talisman estimates proved plus probable reserves in Sudan concession at 150m bbl. It says the company is not prohibited by US sanctions from participating in the project and will fund all Sudan activities from non-US sources.

(Talisman chart shows total yield for five fields 447m bbl, with Talisman share 113m bbl. But company also says it is assuming total of 929m bbl, with its share 232m bbl. Goes on to say mean estimate of undiscovered oil in place is 10 bn bbl, with recovery factor of at least 30%...)

December 98: Talisman says project is 250-500km north of the trouble zones and is well protected.

Pipeline building in South Kordofan, skirting west of Nuba Mountains: SPLA's Ismail Khamis says government used the armed forces to pin down his forces while laying pipe around Lake Keilak.

1999

Pipeline to Port Sudan is 25% complete by mid-January, and more than 110 oil wells have been drilled.

13 January 99: Talisman planning to cut investment in North Sea and Canada to find $200m needed for Sudan project in 1999, says chief executive Jim Buckee. Total Talisman share of Sudan project costs about $430m, which Buckee says can be met with undrawn credit lines of $700m and a "commercial paper program" of about $350m.

February 1999: "Terry" Alexander, former head of Arakis Energy, fined $804,000 US, including $335,000 costs, and banned from trading for 20 years.

Alexander admits secret involvement in deals that profited from Arakis's skyrocketing stock price in 1995 after a reported $750 million financing agreement for the Sudan pipeline, which later collapsed. Alexander unrepentant, saying he was in over his head.

Securities Commission says Alexander controlled Arakis shares held in various offshore companies and trusts and that substantial trading profits were made by "some offshore companies", and that shares were issued without being fully paid for by these companies.

February/March 99: SPLA ambushes Red Cross vehicle near oil fields, seizing 3 local government and security officials (whom it calls "spies") and a Red Crescent officer. All four die; government uses SPLA's refusal to turn over the bodies to delay peace negotiations and block UN relief assessment in SPLA-held Nuba mountains.

1 March 99: Lundin Oil 1998 results include write-off of SEK156.2m of original investment in Arakis Energy.

3 March 99: Jim Buckee of Talisman says first oil exports from Sudan are "less than eight months away." He says acquisition of Arakis required Talisman to spend $140m (excluding capitalised interest) in the last quarter of 1998, in addition to the financing provided to Arakis between the acquisition bid and close of the purchase. Release also says total exploration and development spending in Sudan was $305 million in 1998 including $156m incurred by Arakis prior to the acquisition (Talisman release)

March 99: SPLA 13th battalion under Commander Malik Agar, based at Ulu, defeats a government brigade which had been besieging the town of 50,000 since 6 January. The victory brings the Adar Yale oilfield, in Khor Adar, Upper Nile, east of Melut and Malakal, into range of the SPLA's artillery.

April 1999: Completion announced of 1,610 km pipeline linking Heglig oilfield with terminal at Basha'ir Red Sea terminal

Pipeline runs via oil refinery being built at al Jayli, 70 km N of Khartoum, due to become operational at the end of December 1999, which will have an annual capacity of 2.5m tonnes of crude oil.

April 99: Energy and Mining Minister Dr Awad Ahmed Al-Jaz visits China and West Germany. He discusses with the Chinese ways of completing Khartoum oil refinery, and setting up an electrical power station at the refinery.

30 April 99: The government is building factories to produce tanks and missiles, "to defend ourselves against conspirators," Turabi tells a rally in Ed Damer, and is quoted by Akhbar al-Yom as saying he will use earnings on oil exports as finance.

May 99: Ministers say Sudan will be self-sufficient in oil production by mid-1999 and be able "to export crude oil for the first time ever in the second semester of 1999. Initially we hope to export 150,000 barrels of crude oil per day which would be increased to 250,000 b/d in the year 2000" - Awad al-Jaz

May 99: ''Many villages on the eastern edge of Heglig were attacked and burned to the ground by the Sudanese army, causing the displacement of 1,000 to 2,000 civilians,'' says UN Rapporteur.

May 99: Attempt to put government militias in charge of oil installation south of Bentiu leads to open warfare among allies. Forces of Riak Machar are pushed back by Nuer warlord Paulino Matiep's government militiamen, who now guard the area. Machar losing ground .

May 99: Armed forces spokesman Lt-Gen M.O Yassin tells Radio Omdurman that the SPLA has attacked oil installations in the south and east. One attack in April was at Leer in Unity State (Block 5A, the Lundin/IPC-OMV-Petronas consortium), but Talisman say the $1.4-bn Greater Nile Oil Project was not a target and the attack was not near the consortium's project area.

end May 99: Former SPLA Cdr Tito Biel, based near Bentiu and a government ally since 1997, defects from Riak Machar's group. Clashes continue.

July 99: 1,200 government forces sweep through Ruweng County, in Western Upper Nile, killing scores of civilians, abducting hundreds and burning over 6,000 homes. In a 10-day offensive on the edge of the Heglig oilfields, Antonov bombers, helicopter gunships, tanks and artillery attacked civilians across a 100-km swathe of territory, in violation of a ceasefire signed during last year's famine.

14 July 99: Sudan Government bans all relief flights to people living around the oil fields.

August 99: Talisman Energy says that surging crude oil and natural gas prices helped it pump out a tenfold increase in profit in the second quarter.

September 1999: First shipment of 600,000 barrels leaves Port Sudan. Bargaining ensues over next round of oil deals

September 99: Kerubino Kuanyin is killed as Peter Gadiet and large numbers of Nuer oil zone militia members defect from government side and seek rapprochement with SPLA.

September 99: Film footage of devastation at Gumriak, Ruweng county, is shown on Swedish TV. It prompts outcry against Lundin.

20 September 99: Explosion near Atbara, northern Sudan, holes the oil pipeline. Opposition NDA claims responsibility and warns of further attacks if Talisman does not talk to them.

October 99: Czechs express concern that proposed second military tank consignment to Yemen may end up in Sudan.

21 October 99: Peter Gadiet's forces, aligned with SPLA, reported bombarding Bentiu.

November 99: Japanese oil traders agree deal for crude oil purchase

November 99: Talisman hires Hill & Knowlton PR company, previously employed by BCCI.

November 99: A trial run on the new 50,000-b/d refinery at Jayli, Khartoum, is postponed until March 2000.

November 99: NIF-Umma accord signed in Djibouti.

December 99: After former prime minister Sadiq al-Mahdi breaks with the opposition NDA to resume dialogue with the regime, the NDA forms a unified command for its seven remaining armies and escalates the war in the north-east. Competing peace initiatives promoted by East African states and by Libya and Egypt fail to halt the fighting.