September 6, 2009 (PARIS) — The Sudanese government has persistently published understated figures on its oil revenue over the last few years, a UK based watchdog said in a report released today.
The discrepancies pinpointed by the Global Witness group practically means that the semi-autonomous South Sudan which shares the oil revenue proceeds with the North under the 2005 Comprehensive Peace Agreement, could be underpaid by as much as hundreds of millions of dollars.
“If the oil figures published by the Khartoum government aren’t right, the division of the money from that oil between north and south Sudan won’t be right,” said Global Witness campaigner Rosie Sharpe.
The Sudan People Liberation Movement (SPLM), which rules the South, has frequently accused the ruling National Congress Party (NCP) of concealing figures on oil exports calling into question the credibility of the wealth sharing mechanisms.
The findings will likely add more pressure on the NCP to agree to an audit of the oil figures, which the group said, showed discrepancies of 9%-26% lower compared to those published by operator China National Petroleum Corporation (CNPC).
“Mismatches of this magnitude represent potentially massive sums of money….for example, 10%, the southern government would be owed more than $600 million (on the basis that the Government of Southern Sudan has received more than $6 billion in oil revenues since the signing of the peace agreement). This is more than three times the south’s combined annual budgets for health and education,” Global Witness said in their statement.
“Our findings do not necessarily mean that Khartoum has cheated the south out of money, but they do highlight the need for transparency. Unless the Government of Southern Sudan and Sudanese citizens can verify that the revenue sharing is fair, mistrust will grow and the peace agreement could be jeopardized”.
Reuters have been unable to reach any official from Sudan oil or finance ministry for comment but an adviser to the Sudanese president dismissed the report as “meaningless”.
“The South has representation in the oil commission and an SPLM state minister in the finance ministry that oversees oil sales and another one [minister] in the energy ministry” Abdullah Masar told BBC Arabic service.
“The figures are dictated by the market and not the government. The South receives its share of oil revenue monthly….There is no room for disputing the figures” he said.
The group called on Sudan’s oil customers and CPA guarantors to push for greater transparency in distribution of revenue between North and South.
Sudan currently produces 500,000 barrels of oil per day and hoping to expand productivity to 600,000.
(ST)