ورقه عمل - Oil in Sudan

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UNIVERSIDAD AUTONOMA DE MADRID

(UAM)

Oil in Sudan

Facts and Impact on Sudanese Domestic and International Relations

Student name: Ismail S.H. Ziada

Course: Geoecomoia y Geopolitica

Professor: Alejandro Lorca

Program: Doctorado De Economia y Relaciones Intrnacionales

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Content

Introduction 2

Chapter 1

Oil industry in Sudan 4

1.1 Brief history 4

1.2 Oil reserves and production 5

1.2.1 Reserves 5

1.2.2 Production 5

1.3 Overview of interests of foreign oil companies currently operating in Sudan 6

Chapter 2

Oil and south and north Civil war 7

Chapter 3

Oil and the Sudanese-US relations 9

3.1 Background 9

3.2 1972-1985 9

3.3 1985-1989 10

3.4 1989-2000 11

3.5 2000-2006 14

Chapter 4

Oil and the Sudanese-Chinese relations 17

Conclusions and Perspectives 20

Maps 22

References 24

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Introduction

Since its independence of Britain and separation from Egypt in 1956, Sudan has enjoyed only

11 years of relative stability and peace.

The oil discoveries in Sudan, in the late 1970’s have additionally aggravated the political and

economic situation in Sudan. The oil discoveries played a pivotal role in igniting the second

civil war in 1983 and complicated the possibilities for peace between the south and north as it

became the central objective for the fighting parties.

This paper investigates the impact of oil on the internal situation in Sudan as well as its

impact on Sudan’s international relations. The paper will focus on the role of the main two

foreign actors whose policies were and still are very influential within Sudan; China and the

United States.

The paper argues that oil has had a catastrophic impact on Sudan. It played a key role in

igniting the second civil war in 1983 and complicated the possibilities for peace between the

south and north as control over it became the central issue for a settlement of the conflict. The

civil war made Sudan vulnerable. Internally it depleted the economy and any prospect for

development. In addition it rendered Sudan vulnerable to external imperialist aggressive

policies. The civil war and The United States imperialist aggressive policies aimed at

controlling Sudan’s natural resource (mainly oil), in fact has put the country on the verge of

collapse as a state.

Although the focus of this paper is on the impact of oil, it should be mentioned here that

Sudan has many more valuable natural resources apart from oil. Its mineral wealth includes

significant reserves of uranium, copper, diamonds,[url=#] gold[/url], iron ore, mica, silver, talc, tungsten,

uranium, and zinc. Sudan’s total land surface amounts to 2.51 million square km. of which

about half is cultivable. However, only 170.000 square km. is actually being used for

cultivation. Sudan has a strategic position on the Red Sea, with borders with nine countries;

Egypt, Libya, Chad, Central Republic of Africa, Democratic republic of Congo, Uganda,

Kenya, Ethiopia, and Eritrea. The Sudanese potential for development is therefore vast if a

situation would arise in which its resources could be fully used for the benefit of the Sudanese

people and the development of the country in general. This fact is perceived as a threat to the

interests of the United States and its regional allies as it implies the possibility for the

emergence of a strong and independent Sudan.

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The outline of this paper is as follows. In the first chapter some background information will

be provided on Sudan’s oil wealth as well as some details on foreign involvement in the oil

exploration and exploitation over the years.

Subsequently, in chapter two, a brief overview will be given on the internal Sudanese

developments sine oil exploration was initiated in Sudan.

In chapter three the role of the United States and its policies towards Sudan will be discussed

followed by a similar discussion on the Chinese role and policies towards the country in

chapter four.

In the conclusion I aim to provide a brief overview and interpretation of the described

developments as well as a personal perspective on the possible future of Sudan.