Sudan and South Sudan

Sudan and South Sudan

In 2005, a historic peace agreement brought an end to Africa’s longest-running civil war – the 22-year conflict between north and south Sudan. Tensions over the distribution of the country’s vast oil wealth had exacerbated the conflict, but oil also provided a key to its resolution.

Sudan’s 2005 Comprehensive Peace Agreement (CPA) was underpinned by an innovative deal to split the revenues from southern oil evenly between the north and south. The agreement changed the role of oil from a driver of conflict to an incentive for peaceful cooperation, and saw Khartoum transfer more than $10 billion to Juba over a five year period. This has been crucial in sustaining the fragile peace.  However, a persistent lack of transparency and independent verification of the revenue split has also fuelled mistrust between north and south.

Global Witness investigations into the management of the revenue sharing deal have revealed discrepancies of 9-26% between the oil production figures published by the Khartoum government and those reported by Chinese state-owned CNPC, the main oil company operating in Sudan. These production figures provide the basis for dividing the oil revenues, so it is crucial that both parties can verify them. The government has responded to Global Witness campaigning by promising the publication of comprehensive oil data and an independent audit of the sector, but has yet to deliver on these commitments.  

 In 2005, a historic peace agreement brought an end to Africa’s longest-running civil war – the 22-year conflict between north and south Sudan. Tensions over the distribution of the country’s vast oil wealth had exacerbated the conflict, but oil also provided a key to its resolution.

 Sudan’s 2005 Comprehensive Peace Agreement (CPA) was underpinned by an innovative deal to split the revenues from southern oil evenly between the north and south. The agreement changed the role of oil from a driver of conflict to an incentive for peaceful cooperation, and saw Khartoum transfer more than $10 billion to Juba over a five year period. This has been crucial in sustaining the fragile peace.  However, a persistent lack of transparency and independent verification of the revenue split has also fuelled mistrust between north and south.

Global Witness investigations into the management of the revenue sharing deal have revealed discrepancies of 9-26% between the oil production figures published by the Khartoum government and those reported by Chinese state-owned CNPC, the main oil company operating in Sudan. These production figures provide the basis for dividing the oil revenues, so it is crucial that both parties can verify them. The government has responded to Global Witness campaigning by promising the publication of comprehensive oil data and an independent audit of the sector, but has yet to deliver on these commitments.

Furthermore, as the world’s newest and most oil-dependent country, it is vital that the government of South Sudan immediately demonstrates its commitment to managing its national assets in the best interests of its population. This means managing its oil sector in a transparent and accountable manner from the outset, and enshrining this approach in its legal and regulatory frameworks.

Furthermore, as the world’s newest and most oil-dependent country, it is vital that the government of South Sudan immediately demonstrates its commitment to managing its national assets in the best interests of its population. This means managing its oil sector in a transparent and accountable manner from the outset, and enshrining this approach in its legal and regulatory frameworks.