South collaboration in oil and gas sector, and natural resources

Country: Juba

ASI participated in a high level FCO / Chatham House mission to Juba and Khartoum with the two parties to the Sudanese Comprehensive Peace Agreement, looking ahead to the referendum in 2011 and beyond. Key issued discussed and covered during the mission:

How to build a strong petroleum sector and good north-south collaboration under both unity and secession scenarios
How might oil and other revenues be shared? (options under a unity scenario: federal resource allocation formulae and derivation principles; examples of resource-sharing deals between nation states e.g. joint production zones); ownership of reserves; options concerning pipeline access
Discussing some of the great practical difficulties transporting and processing someof the heavier oil from the south and the need to sort out arrangements for this to continue in the future
What can be put in place to ensure transparency and good governance of natural resources (e.g. Resource Revenue Funds, the Extractive Industries Transparency Initiative)
What arrangements can support collaborative approaches to energy supply and management of shared natural resources such as water?

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