Sudan—China (by proxy through the State-owned China National Petroleum Corporation)

FIR PSL COUNTRY

Justification for SCS: China, through the China National Petroleum Corporation (a state owned oil corporation), owns 40% of the Greater Nile Petroleum Operating Company (the company responsible for oil extraction in Sudan, and the single largest percentage stake owned by any part owner of the Greater Nile Petroleum Operating Company). Rebel leaders accuse China (with documentary support from international NGOs) of providing military support (tanks, arms, helicopters, etc.) to the Sudanese government in Khartoum in order to allow them to prosecute operations against rebel groups in Darfur and in southern Sudan. Weaponry is also provided for the defense of existing oil installations. While the proven oil fields in Sudan are modest, it is surmised that there are vast untapped oil fields in areas where fighting has prevented exploration (the south and the Darfur region). To that end, China has a particularly vested interest in promoting peace, and ensuring the viability of the Khartoum government, roughly 80% of the Sudanese oil export goes to China accounting for about 7% of China’s oil needs.

Stakeholder size (number of people): the exact employment figures are unknown at the current juncture, but CNPC claims more than 11,000 employees (permanent and day laborers) throughout Sudan. The precise demographics of CNPC employees is unknown.

Area of Influence:
a. Geographic area: Conducts drilling operations in coastal and southern Sudan with protection by the Khartoum government under a revenue sharing agreement between the Khartoum government and the government of China.
b. Population subsets: Primarily allied with the Arab northern Sudan against the African southern Sudan and Darfur region.

Description of Organization: As a Chinese state-owned company, the exact hierarchy is somewhat unclear and difficult to determine.
a. Who are the leaders? The CNPC has 1 President (Jiang Jiemin); 7 Vice Presidents (Zhou Jiping, Duan Wende, Wang Yilin, Zeng Yukang, Wang Fucheng, Li Xinhua, and Liao Yongyuan); 1 Chief Financial Officer (Wang Guoliang); 1 Chief of Discipline and Inspection Group (Chen Ming); and 2 Assistant Presidents (Xu Wenrong, Wang Dongjin).
b. How does one gain influence in the group? One gains influence in the corporation both through work that is recognized, but also (and perhaps more importantly) being appointed to high level positions in the company.
c. What issues do they care about? Profitability seems to be the paramount concern. There seems to be little regard for the international acceptability of the practices of their host governments.
d. What does the organizational structure look like? The organization is hierarchical, with the President situated at the top of the hierarchy; the Vice Presidents, Chief Financial Officer, and Assistant Presidents directly below the President; this followed by a wealth of committees are offices that do not conform to a hierarchical diagram, but can generally be viewed as being subservient to the top two tiers.
i. Rule by consensus
ii. Oligarchy
iii. Dictatorship
iv. Theocracy
v. Etc.

Financial Resources:
a. List activities: The China National Petroleum Corporation generates revenue through oil and gas upstream and downstream operations, oilfield services, engineering and construction, and manufacturing and supply of petroleum materials and equipment.
b. Profitability: 2007 revenues for China National Petroleum Corporation totaled $110.520 billion, with profits totaling $13.265 billion.

Military Resources (if applicable): N/A – The China National Petroleum Corporation does not possess any arms in itself, though it does provide revenue that allows the Government of Sudan to purchase modern military equipment from China (as well as other nations).
a. What arms do they possess:
i. What type?
ii. How much?
b. Experience level:

Provide a short history of the stakeholder group
a. What is their origin? China National Petroleum Corporation has been in Sudan since 1996 and has allied itself with the Khartoum based government in exchange for oil rights. It maintains the single largest percentage stake of any foreign oil corporation of drilling rights in Sudan.
b. How have they changed?
i. Interests: The interests of China National Petroleum have not changed over the course of their existence in Sudan; they are willing to support the Khartoum government in exchange for favorable oil rights in Sudan.
ii. Level of influence: The influence of China National Petroleum has only grown over the course of their involvement in Sudan. As they now control roughly 80% of the Sudanese oil export, and as oil export takes a greater role in income generation for the Khartoum government, their level of influence has grown tremendously.
iii. Resources: Over the past 12 years China National Petroleum has grown significantly, to the point that it was ranked in the top 25 of the Fortune Global 500 in 2007, up from 39 in 2006.
iv. etc
c. What are their future goals? Continued oil exploration in Sudan, both in the Darfur and Abyei region, which are thought to have significant untapped oil reserves.