Alistair Dawber: Where China leads, other nations are desperate to follow

Thursday 30 September 2010 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

In just 10 years the flat skyline of Sudan's dusty capital has been transformed as the former British colony has attracted billions of dollars of Chinese investment in return for access to its vast reserves of natural resources. Today, visiting executives can even enjoy the luxury of Khartoum's very own Burj Al-Fateh hotel, a skyscraper in the shape of a ship's sail, that was built with Gulf money and would not look out of place in brash Dubai.

Sudan may be war-ravaged, corrupt and at one time a haven for Osama bin Laden, yet the statistics pointing to its potential are mouth-watering. The country is thought to have some of the biggest untapped reserves of oil in the world. It produced 39.3 million barrels in the first half of the year, an increase of 74.8 per cent on the same period last year, the Petroleum Department of the Southern government said earlier this week. Analysts estimate that the country is capable of churning out 1 million barrels a day.

About 70 per cent of the oil reserves are in the South, which has benefited from greater autonomy since a peace deal was signed with the Khartoum government in 2005. Shell and BP both say they have no operations in Sudan, and no plans to invest in the country, but neither are ruling out the possibility in the future.

But even since the agreement between the largely Christian South and the Muslim North, rows over who has rights over the oil fields have continued.

White Nile, a small UK oil exploration firm run by the former England test cricketer Phil Edmonds, withdrew from Sudan two years ago when a licence for which it had paid the Southern administration as much as $50m to secure was revoked after Khartoum sold the same interest to the French energy giant Total.

And even if Sudan manages to lure the cream of British industry, businesses are already years behind the competition. China is already the country's biggest trading partner. It has secured its position by funding key infrastructure projects, including a bridge spanning the Nile in Khartoum which replaced the dilapidated structure left by the British.

A number of emerging market countries are getting in on the act too. As recently as Monday, Sudan signed deals worth $500m (£320m) with Brazil's President Lula, covering everything from infrastructure projects to sugar.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in