Peace in the Pipeline

Chances and challenges for oil exploration in Sudan		Download a pdf version of the full Exploration Logistics Group news article.
The signing of the peace agreement between North and South Sudan is being seen as one of the best opportunities in recent years to halt Africa's longest running civil war, with substantial international pressure being applied to all parties to uphold their agreements.

After 21 years of fighting, the historic peace treaty signed in Kenya in January between the government of President Omar al Bashir in the North and the Sudanese People's Liberation Army (SPLA) led by John Garang in the South, holds the first realistic prospect for an independent Southern state and the ongoing development of the whole country. A land where 35 million people lead a largely subsistence existence with minimal infrastructure, it's a region which could transform rapidly, with the promise of significant aid for reconstruction following a United Nations appeal for US$600 million just for this purpose.

At the heart of this growth is Sudan's mushrooming oil industry. Reserves have been estimated at 563 million barrels, an economic lifeline for one of the world's poorest countries. Following the completion of the first oil export line in 1999, oil already accounts for 73% of total export earnings. Under the peace agreement Sudan's new oil wealth, predicted to reach 500,000 billion barrels per day (bbl/day) in 2005, will be split equally between North and South, ensuring a significant flow of funds into the hugely underdeveloped South.

As a result, opportunities for stability and growth in oil exports are looking more realistic. There are predictions of a fivefold increase in production over the next ten years. A significant number of international companies are already actively involved in oil development, both in exploration and the supply of equipment and other essential resources. In June 2004, the Government announced the first oil exploration in North Sudan in the Jazira region of North Khartoum. Plans are being discussed to export to fellow members of Comesa, The Common Market for Eastern and Southern Africa, and there is talk of a pipeline to link oil fields through to the port of Mombassa. United States (US) economic sanctions have prohibited investment by US companies but in April 2004, the decision by President Bush not to impose additional sanctions in support of the peace process was perhaps the first indication of a policy shift. Opportunities for exploration clearly exist but to bring them to fruition, exploration and construction companies will have to surmount a range of health and safety challenges brought about, not just by political unrest, but also because of the varied and challenging topography and economic climate.

Sudan is the largest and most diverse country in Africa with deserts and arid wastelands in the North, tropical swamps in the South and mountain ranges in the East and West. At 2,505,810km, it's ten times the size of the United Kingdom, but with just two thirds of the population and a Gross Domestic Product (GDP) per capita of just $330. Many of Sudan's oil reserves are located in the South where the topography makes exploration and production challenging. The Nuba Mountains have some of the greatest scenery of Sudan, small green valleys and high mountains, but no roads. In fact Sudan has barely 12,000km of highway and less than half is paved. The Sudd Swamp is named from the Arabic 'sadd' or 'barrier'. It's a huge environmentally sensitive wetland spanning South Central Sudan expanding to 130,000km in the rainy season. Sudan is a challenge for any organisation needing to transport people or equipment safely and off-road and desert driving skills will be essential in moving poeple and equipment almost anywhere in the country.

Teams from Frontier Medical, Exploration Logistics Group's specialist medical division, are today working to support the employees of Western exploration projects in Southern Sudan. The health and safety risks facing staff are as significant as any exploration project but, as Operations Manager Judy Mason points out, the underdevelopment of Southern Sudan's rural health infrastructure simply can't deal with these challenges.

She explains, "What few hospitals there are in the region don't guarantee Western standard medical treatments. In fact many rural doctors rely on traditional healing practices. The inadequate road infrastructure makes access to hospitals difficult at the best of times and, prior to the new agreement, it would not have been uncommon to find the hospitals in the control of armed militia."

The medical infrastructure as it stands won't support the occupational needs of the Western oil industry where equipment failure, human error, oil blowouts and other chemical spillages are an unwelcome but everyday risk. Companies looking to work in Sudan will need to compensate for a poor health infrastructure by importing specialist remote site medical support and trained personnel as well as establishing well-equipped clinics to deal with emergency situations.

Incoming oil companies supporting a local workforce will also need to have an eye on the cultural and religious differences of the country. Overall the majority of the population are Sunni Muslims, but in the South, which is less inhabited, the local population is largely Animist and Christian. Adds Judy Mason, "Local people will have a very different view of what constitutes good medical practice and there's plenty of potential for misunderstanding."

Malaria exists throughout Sudan, spread by the deadly parasite P. falciparum. The risk is low and seasonal in the North, higher along the Nile south of Lake Nasser and in the Central and Southern part of the country. The P. falciparum parasite here has reported resistance to some drugs, so it's important to take advice on the best medication. Sourcing anti-malarial drugs and medical supplies locally is unreliable and haphazard. The biggest concern is the prevalence of counterfeit medicines. A World Health Organisation (WHO) survey of the quality of anti-malarials in seven African countires inlcuding Sudan revealed that 90% of products tested were below standards. A further WHO investigation of the South Sudanese health sector confirmed that quality control mechanisms for medicines are virtually non-existent.

Oil exploration companies need to manage an ongoing supply of safe medical supplies from outside Sudan. Seismic teams from WesternGeco have overcome this particular problem in Sudan through www.medekit.com, a division of Exploration Logistics Group, pioneering a one-stop supply source for Western standard pharmaceuticals. Medical supplies are easily accessible to working teams around the globe through an on-line catalogue. The website has unique management tools including simple step-by-step template facilites that can be used to develop a clear medical supplies inventory, tailored to specific project needs and circumstances. Solving an everyday problem in a critical application area, medekit only recommends products suitable for remote site use, that are compatible with freighting and storage and safe in the key areas of interactions, side effects and quality.

Outbreaks of cholera and dysentery remain recurring problems, especially with a high proportion of the population living in refugee camps. Sudan is also prey to Ebola Haemorrhagic fever, with the most recent outbreak in Yambio County where isolation wards are now in place and fully operational. Whilst the health risks and issues and concerns are significant, they are clearly manageable with organisations such as Frontier Medical fully equipped and experienced in providing remote site medical support, emergency care and ongoing health initiatives for staff wherever they are - land-based or offshore, in any extreme of climate or environment.

The problems in Sudan are clearly far from over. The deaths of 70,000 people in Darfur, currently excluded from the peace process, and the displacement of a further 1.5 million is widely considered to be today's worst humanitarian crisis. There are also concerns as to whether the two leaders will have the vision to ensure peace in their region, whether John Garang will create equality and harmony in the South or instead become a divisive tribal leader. In a time of transition however, there is hope that an aggressive mine clearance programme will undoubtedly make a significant contribution. The peace agreement shares the oil wealth, establishes seperate monetary and government systems in the North and South and aims to resolve the whole with a country-wide referendum in six years. With peace in the pipeline, we can expect a rapid increase in foreign investment and development.