VZCZCXRO3060
PP RUEHROV
DE RUEHKH #2639 3121146
ZNR UUUUU ZZH
P 081146Z NOV 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC PRIORITY 5166
RUCNIAD/IGAD COLLECTIVE

UNCLAS KHARTOUM 002639 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PGOV PINR ECON EPET EINV ENRG SU
SUBJECT: Sudan Compromise Possible on National Petroleum Commission 
 
 
¶1.  The National Petroleum Commission (NPC) has been mired since its 
establishment by an inability to agree on terms of reference.  The 
SPLM also denied meaningful access to the existing oil contracts and 
consistent access to the fields to read the meters and investigate 
environmental concerns.  The southerners argue these practices all 
violate their right to monitor and seek redress under the CPA. They 
are also concerned about long-term impact to the Sudd, the world's 
largest freshwater wetlands, and the potential damage to the Nile. 
The southerners blame GNU Energy and Mining Minister Awad Ahmed 
al-Jaz-Al for blocking all Government of Southern Sudan (GOSS) 
access. 
 
¶2.  The dispute in the NPC centers on SPLM insistence on an 
independent commission with policy making and contract negotiating 
authority, full participation by southern members including the 
state representatives, and a delegation of administrative and 
technical responsibilities to a joint secretariat.  The northern 
members had pushed for the NCP to play only a rubber stamping role 
for all contracts which the Minister of Energy alone would have the 
authority to negotiate and sign.  Last month, however, the southern 
and northern members met to try and break the logjam.  Because 
President Bashir sits on the NPC as one of the co-chairs of the 
commission, along with First Vice President Salva Kiir, he was 
reportedly embarrassed by the committee's ineffectiveness.  The SPLM 
members of the NPC say they are close to a compromise on many of the 
key obstacles and expect that the National Congress Party (NCP) will 
agree to allowing the GOSS Ministry of Mining and Industry and the 
Government of National Unity (GNU) Ministry of Energy to jointly 
negotiate oil contracts in southern areas and then refer them to a 
joint secretariat for implementation. 
 
POWERS