Community Development & Humanitarian Assistance Program (CDHAP) Sudan, Lundin Petroleum AB October 2001

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1 Community Development & Humanitarian Assistance Program (CDHAP) Sudan, Lundin Petroleum AB October 2001

2 Table of Contents Contents The Community Development & Humanitarian Assistance Program (CDHAP) of the Lundin/ OMV/ Petronas/ Sudapet Consortium Consortium Activities in Sudan Reasons for Community Development & Humanitarian Assistance CDHAP Objectives CDHAP Projects Accomplishments and Lessons Learned in 2001 Plans for WF

Consortium Activities in Sudan The Consortium A consortium constituted by Lundin Petroleum AB (Sweden) OMV (Sudan) Exploration GmbH (Austria), Petronas Carigali SDN BHD (Malaysia) and Sudapet (Sudan)

CHAD LIBYA EGYPT Port Sudan Khartoum ERITREA Red Sea Lundin Petroleum & Partners GNPOC Existing Pipeline Existing Oil Fields YEMEN The Block SUDAN The consortium is active in the area of DJIBOUTI

3 Consortium Activities in Sudan The Consortium A consortium constituted by Lundin Petroleum AB (Sweden) OMV (Sudan) Exploration GmbH (Austria), Petronas Carigali SDN BHD (Malaysia) and Sudapet (Sudan) is conducting oil and gas exploration activities in Sudan through its operator Lundin Sudan Limited (LSL). CHAD LIBYA EGYPT Port Sudan Khartoum ERITREA Red Sea Lundin Petroleum & Partners GNPOC Existing Pipeline Existing Oil Fields YEMEN The Block SUDAN The consortium is active in the area of DJIBOUTI Block 5A within Unity State. It began its exploratory activities on the Block in 1997 and drilled its first well in In March 2001, it made a significant oil discovery at CENTRAL AFRICAN REPUBLIC Thar Jath Discovery 5A 5B BLOCK 5A ETHIOPIA Thar Jath. It plans to continue seismic acquisition and exploratory drilling in CONGO Block 5A Location KENYA SOMALIA WF

4 Ongoing Operations in Sudan Seismic acquisition Drilling operations WF

5 Block 5A Landscape A Nuer village Topography of the area WF Temporary settlement

Reasons for CDHAP While the consortium's main objective in Sudan is to explore for and produce oil & gas, it also seeks, through its activities, to contribute to the welfare of the people of Sudan,

6 Reasons for CDHAP While the consortium's main objective in Sudan is to explore for and produce oil & gas, it also seeks, through its activities, to contribute to the welfare of the people of Sudan, particularly those situated in the concession area. In the long-term, it can achieve this objective by helping the country achieve economic development by bringing its resources into commercial production. In the sort-term, it can do so by helping the population cope with some pressing needs. In order to meet these objectives, it consulted with representatives of the local population, tribal leaders, representatives of the state and the government of Sudan, and other relevant stakeholder groups to determine key needs. Initially, activities were carried out on a time/needs basis. But as a result of the consultation process, a Community Development and Humanitarian Assistance Program (CDHAP) was elaborated. CDHAP started to be implemented last year. CDHAP Objectives CDHAP has three main objectives: 1. To promote better health, hygiene, education and quality of life for the current and future inhabitants of the concession area of Block 5a, Unity State. 2. To contribute to the economic and social development of the area. 3. To promote friendly relations between the consortium and the people in the area. The Program is implemented by dedicated international and Sudanese staff at corporate, country and field level. WF

CDHAP Projects Projects Overview The initial CDHAP period covering the pre-production phase of the operations is 2001-2004.

The program aims to address key needs in the area in an integrated fashion, having regard for instance to the effect of lack of education on health and employment opportunities.

Therefore activities undertaken to date have focussed on answering those needs on an immediate and middle term basis.

7 CDHAP Projects Projects Overview The initial CDHAP period covering the pre-production phase of the operations is Activities are carried out mainly in Block 5A and particularly areas south of Bentiu, which are not currently receiving attention from other operators. The program aims to address key needs in the area in an integrated fashion, having regard for instance to the effect of lack of education on health and employment opportunities. Upon an analysis of the situation in the area, it was determined that there were important basic needs to be met. Therefore activities undertaken to date have focussed on answering those needs on an immediate and middle term basis. The activities have consisted in a combination of humanitarian assistance and community development actions. Where feasible, the activities have been coupled with self-help measures, to reinforce and prolong their positive effects. Focus on self-help activities will be reinforced in 2002 and beyond. The main areas determined as requiring immediate attention were: water supply, health, education and self-help measures. An example of activities undertaken in 2001 follows: WF

Projects Accomplished in 2001 - Freshwater Supply Freshwater Supply Freshwater has been made available through a combination of the following: daily delivery of 13'000 litres of

in the town of Lehr, distribution of one thousand 20-litre water containers for the local population Lessons learned The need to supply freshwater to the people was evident from the

The supply of water by water trucks was meant to be a temporary measure to address immediate means, while establishing shallow-water wells was meant to provide a longer term

8 Projects Accomplished in Freshwater Supply Freshwater Supply Freshwater has been made available through a combination of the following: daily delivery of 13'000 litres of water to water cisterns placed along the all weather road "AWR" drilling of 6 shallow water-wells along the AWR providing a permanent supply of freshwater repair of 10 water-wells in the town of Lehr, distribution of one thousand 20-litre water containers for the local population Lessons learned The need to supply freshwater to the people was evident from the start. The supply of water by water trucks was meant to be a temporary measure to address immediate means, while establishing shallow-water wells was meant to provide a longer term solution for various villages situated near the AWR. Unfortunately, after thorough testing, the quality of the water tapped by these wells was found to be improper for human consumption, (i.e. too salty), though it can be used for cattle. As a result, it has been decided to drill deepwater wells, which should tap into lower and thus cleaner water basins. WF

9 Projects Accomplished in Freshwater Supply Water truck delivering freshwater Lehr inhabitants drawing water from repaired well Local people taking water from cisterns WF

Projects Accomplished in 2001 - Health Health A Sudanese doctor was recruited to spend time in the area before the rainy season.

10 Projects Accomplished in Health Health A Sudanese doctor was recruited to spend time in the area before the rainy season. During his field trip in Block 5A he accomplished the following tasks: treatment of local population in accessible areas of Block 5A such as Lehr, Dorang, and Rier before the onset of the rainy season needs assessment for the feasibility of providing permanent medical services Throughout the year, measures were taken to prevent the spread of diseases in the area, such as: distribution of blankets, mosquito nets, plastic sheeting, soap, etc. facilitation of medical programs launched by other institutions Lessons learned The visit by the medical doctor revealed some of the recurring diseases requiring treatment as well as the need not only to treat the symptoms of the illnesses but also their causes, such as poor hygiene, lack of education, insufficient equipment, etc. Therefore, the program has been revised in order to ensure that people who receive medical treatment are also taught basic techniques to avoid catching diseases. It furthermore underlined the need to increase work in the area and led to the decision to rebuild an existing hospital in Lehr (which is the largest settlement in the area), and to set up some tent clinics in other areas of Block 5A. WF

Projects Accomplished in 2001 - Education Education Contributing to education is to

As a first step it was decided to assist existing schools, through: distribution of

for education is evident, it is less clear how it is to be dispensed, i.e. by whom and to whom.

In the future, with the renovation of a school in Lehr planned by the authorities,

11 Projects Accomplished in Education Education Contributing to education is to contribute to the long-term viability of the area. As a first step it was decided to assist existing schools, through: distribution of school supplies such as school kits, chalkboards and chalk Lessons learned While the need for education is evident, it is less clear how it is to be dispensed, i.e. by whom and to whom. To date the program has only focussed on distribution of materials. In the future, with the renovation of a school in Lehr planned by the authorities, further thought will be given to means to ensure that it be accessible to girls and boys situated not only in the town but in remoter places as well. WF

12 Projects Accomplished in Education Building Dorang school Dorang school under a tree Providing school equipment WF

Projects Accomplished in 2001 - Self-help Measures Self-help measures If the area is to be viable, its population needs to be actively engaged in its

Reinforcing existing initiatives and making a deliberate effort to hire locally, when feasible, is one way of building the capacity of the local people

So far self-help measures have entailed: purchase of farming tools to agricultural village committees for the upcoming farming season (hand spray pumps,

13 Projects Accomplished in Self-help Measures Self-help measures If the area is to be viable, its population needs to be actively engaged in its development. Reinforcing existing initiatives and making a deliberate effort to hire locally, when feasible, is one way of building the capacity of the local people to meet their needs. So far self-help measures have entailed: purchase of farming tools to agricultural village committees for the upcoming farming season (hand spray pumps, hand grinding flour mills) employment of Sudanese for general operations employment of Sudanese for seismic program (over 80% of total staff) employment of Sudanese CDHAP staff. WF Lessons learned Until such a time where the consortium has a permanent presence in the Block, which will enable it to launch capacity building projects requiring a sustained engagement, the accent has been placed on seeking to help those already helping themselves (i.e. farmers engaged in agricultural committees) and to employ local labour force both for operational and community development purposes. However, to be able to progress in this field, there is a clear need for training, which is something that is envisaged for the upcoming year.

Projects Accomplished in 2001 - Other Developments Other developments By building the local infrastructure, i.e. a bridge, all weather and seasonal roads in remote areas, the consortium has increased the mobility of the people, their access to medical facilities, schools and market centres.

14 Projects Accomplished in Other Developments Other developments By building the local infrastructure, i.e. a bridge, all weather and seasonal roads in remote areas, the consortium has increased the mobility of the people, their access to medical facilities, schools and market centres. The all weather road has stimulated the establishment of a bus service transporting people from the Thar Jath area to Bentiu and Rubkona. This enables the population from remote areas to purchase goods in the thriving markets of Bentiu and Rubkona at a fraction of the cost of those available in Lehr, for instance. WF

15 Projects Accomplished in Other Developments Rubkona market Bus service at Jarayan Bridge linking Rubkona to Bentiu and Block 5A WF

Projects Accomplished in 2001 - Other Activities

activities take place within the area of

initiatives launched by other institutions /

been supporting financially a Home for Street

16 Projects Accomplished in Other Activities Other activities While the bulk of CDHAP activities take place within the area of operations of the consortium, some worthy initiatives launched by other institutions / individuals in Khartoum have been identified and supported. Thus, since its inception, the consortium has been supporting financially a Home for Street Boys and Girls and participates in the running costs of a Limb clinic. WF Lundin Petroleum AB - September 2001

Plans for 2002-2004 Future Plans CDHAP will continue some of the activities it launched in 2000-2001 but will also attempt to provide longerterm solutions to medical problems and educational

Main activities projected include the refurbishment (and staffing) of a hospital in Lehr, the extension of the AWR to Lehr, drilling of deepwater wells in the Block area, setting up and equipping

17 Plans for Future Plans CDHAP will continue some of the activities it launched in but will also attempt to provide longerterm solutions to medical problems and educational requirements, increased employment opportunities and preservation of the environment. Important work will be undertaken to continue to build up the local infrastructure. Main activities projected include the refurbishment (and staffing) of a hospital in Lehr, the extension of the AWR to Lehr, drilling of deepwater wells in the Block area, setting up and equipping schools. Hospital in Lehr to be renovated and staffed In addition, during this second phase, the consortium plans to focus on capacity building measures in order to diversify people's means and sources of income. These may include adult education programs, vocational training, enhancement of existing skills, micro-credits, etc. In this manner, the consortium hopes to help local people achieve self-reliance and sufficiency in the future. School in Lehr to be renovated and equipped WF

18 For further information, contact Head of Corporate Responsibility Lundin Petroleum 6 rue de Rive CH-1211 Geneva 3 Switzerland Tel. (41-22) Fax (41-22) info@lundin.ch

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