1. What is the oil potential of Sudan?
2. Which companies are already present in Sudan?
3. Why did Total withdraw from Sudan in the 1980s?
4. Which conditions led to the updating of the sharing agreement?
5. Does Total have employees in Sudan?  How is their security ensured?
6. What can Total bring to Sudan and to its people, apart from its technical and financial competencies?
7. What exactly was the issue with White Nile?
8. Couldn’t Total’s presence in Sudan be seen as supporting the Sudanese government?
9. Despite the Comprehensive Peace Agreement, the situation is still unstable on your block and in the South in general, especially because of events in Darfur. Could your return really be described as reasonable and acceptable?
10. What environmental protection commitments have you made?

1. What is the oil potential of Sudan?

Sudan has significant oil reserves, especially in the South of the country. Furthermore, recent exploration activity in the North and in the Red Sea seems quite promising. Very little exploration work has been done on block B because the insecurity in the south of the country did not allow us to assess its potential. For the moment, all hypotheses are still possible, but it would be premature to put forward even a tentative evaluation.
What we can say at present is that Sudan’s production, which stood at almost zero five years ago, today stands at 500,000 bopd, following the coming on stream, in September 2006, of the recent discoveries in blocks 3 and 7.  Sudan's forecasted production stands is 600,000 barrels per day in 2008.

2. Which companies are already present in Sudan?

Around fifteen oil companies are already operating in Sudan, mainly from Asia (Chinese, Malaysian or Indian), such as CNPC (China National Petroleum Corporation) and Malaysia’s Petronas.
The Chinese-Malaysian CNPC-Petronas partnership is particularly active in the Heglig region, on Blocks 1, 2  and 4 (to the north-west of Block B) and in the Adar, Yale region, on Blocks 3 and 7 (to the north of Block B), in zones reputed to be somewhat more secure but nevertheless very sensitive.  On Blocks 1, 2 and 4, several fields have been developed since 1999 by CNPC (40% partner with the Indian Group ONGC Videsh 25%⁽¹⁾, Petronas 30% and Sudapet 5%) and are currently producing about 300,000 bopd.  On Blocks 3 and 7, the Palogue field was brought on stream in September 2006 by the  consortium regrouping CNPC 41%, Petronas 40%, Sudapet 8%, Al Thani 5% and Sinopec 6%.  Development of the resources in these zones required the construction of two pipelines running 1,650 kilometers and 1, 400 km respectively from the fields via Khartoum to Port Sudan on the Red Sea.  The Heglig agreement also covers construction of a refinery in Khartoum and a loading terminal at Port Sudan.

In June 2006, the consortium regrouping Petronas 67.9%, ONGC 24.1% and Sudapet 8% also brought on stream the Thar Jat field on permit 5A that currently produces about 25, 000 bopd. 

(1)The Canadian oil company Talisman pulled out of Sudan in 2002 because of pressure from NGOs and investors. The company sold its stakes in the different blocks where it operated to the Indian company ONGC Videsh



3. Why did Total withdraw from Sudan in the 1980s?

Total didn’t withdraw from Sudan. We suspended our activities because the area where Block B is located was no longer secure.
By updating its agreement and by considering a resumption of its activities, Total falls within the scope of the restoration of peace in Sudan.



4. Which conditions led to the updating of the sharing agreement?

It is first and foremost the progress made in the peace negotiations between the government and the SPLM -which took shape in the January 9th 2005 peace agreements- which enabled the updating of the contract.
The contract dated back to 1980 and it needed to be updated so that it could be operational when the time came. Furthermore, both sides thought it was important to take into account the changes in the profession over the last 24 years, in particular concerning social and environmental responsibility, as well as in the Sudanese contractual standards.


5. Does Total have employees in Sudan?  How is their security ensured?

Since February 2005, Total has a permanent representative in Khartoum, with a small staff which was reinforced, in 2006, with the appointment of a Geophysics Manager to prepare seismics. Total also has a staff in Juba. This presence may change as works progress. Total pays close attention to the security of its employees and our safety standards will apply in Sudan. Total plans to start operations with due regard for the safety situation and its Code of Conduct.


6. What can Total bring to Sudan and to its people, apart from its technical and financial competencies?

The updating of the contract in 2004 enabled us to take into account our concern for sustainable development. The contract now provides for initiatives to help local communities, such as educational and health projects, in line with the needs of the people. The populations must benefit directly from our presence and reach a better standard of living.
These programmes will be defined in detail when our teams return to the field and can identify the needs and expectations in consultation with local communities. To do this, we will work closely with the Sudanese authorities and international organizations and will draw on the expertise of NGOs.  Total has already established relationships with some NGOs to develop our proposals.
Total intends to work in full transparency and to respect the populations, their culture, and their environment. We will work in accordance with international business standards as well as with the principles of Human Rights just as we do everywhere in the world.

Total wants to take an active part in the reconstruction of this country ravaged by two decades of civil war, and to work to promote its values by taking part in Sudan’s economic development.



7. What exactly was the issue with White Nile?

[NOTE: In early March, 2005, the press announced that the Sudanese People’s Liberation Movement (SPLM), representing the South, had granted a block known as block Ba, to the South Sudanese company Nile Petroleum Corporation. This corporation had then entrusted this concession to White Nile, a company registered at Guernsey in February 2005.
This concession overlaps a substantial part of  block B, which is precisely the area covered by Total’s updated agreement with the government in Khartoum, and where the Group is planning to resume operations.]

Total was certain that its contract was valid. Our contract was originally signed in 1980 for an initial duration of 40 years, and since then Total’s rights have been regularly confirmed by the government in Khartoum, in particular during the Stoppage period between 1985 and 2004. The updating of the contract, on 21 December 2004, was done in full compliance with the  local rules in force and with the peace agreement. Let us not forget that article 4 of the agreement stipulated that all contracts signed with the Sudanese authorities before that date (January 9, 2005) would be abided by.

White Nile's contract signed with South Sudanese authorities was thus both competing with Total's and contrevening the inter-Sudanese peace agreements. We therefore undertook to have our rights abided by through legal procedure in the British Courts (White Nile is listed on London Stock Exchange) and numerous clarification contacts with all authorities concerned.

Sudan's National Petroleum Commission, a joint institution enacted by the peace agreements between North and South Sudan, definitely settled the dispute on June 17, 2007 by acknowledging Total's exclusive rights on Block B and consequently ordering White Nile's withdrawal.


8. Couldn’t Total’s presence in Sudan be seen as supporting the Sudanese government?

Because we work in a country does not mean that we condone its politics or the practices of the regime in power.
Total works in countries that have oil and gas resources to develop, provided that in doing so we do not contravene any French, local, European Union and international laws and regulations.
In the absence of any law or resolution forbidding business dealings with a particular country, Total will consider doing business there, but only if it is confident that it can do so in strict compliance with the Group’s own Code of Conduct and Ethics Charter.

In any case, the resumption and the progress of operations in Sudan will be done in accordance with both the northern and the southern authorities, and with due respect to national and international laws. We are convinced that by investing and applying our standards in Sudan, our presence will be beneficial for the Sudanese population. Sanctions imposed on companies investing in Sudan are more likely to have a long lasting impact on the population than on the government. Total's decision to invest in Sudan expresses its deep-seated belief that economic development and Human Rights progress go hand in hand. Exacerbating an impoverished country's problems through sanctions or an embargo will not improve its people's lives.

9. Despite the Comprehensive Peace Agreement, the situation is still unstable on your block and in the South in general, especially because of events in Darfur. Could your return really be described as reasonable and acceptable?

The local situation is definitely complicated, both in human terms, as refugees trickle back, and politically and environmentally. We’re aware of the tensions in this region of Africa. If we were to resume our operations in Sudan, we would take into account all aspects of the challenging situation. We would also be committed to acting in accordance with our Code of Conduct and participating in community development work.We believe that we will make a much greater contribution to Sudan’s economic and human development than other operators ready to take our place. South Sudan needs foreign investment to develop. Imposing sanctions on an impoverished country that had been at war for 20 years is not the best way to improve the lives of its inhabitants, or even to cement the peace process.

10. What environmental protection commitments have you made?

We will implement our environmental policy even more scrupulously knowing that a portion of Block B is a precious ecosystem rich in biodiversity. The region, one of the planet’s major wetlands, is a vital wintering ground for many water birds and is home to local species of reptiles, mammals, birds and plants. We know that migratory mammals come to Block B during the dry season and that since the conflict ended, large animals such as elephants, zebra, ostriches and antelope are returning. We have completed two environmental impact assessments that are pending validation in the field. The planned seismic and drilling operations will take place outside the national parks.