Community Development & Humanitarian Assistance Program (CDHAP)Sudan, 2001 - 2004

Lundin Petroleum ABOctober 2001

Lundin Petroleum ABOctober 2001

Contents

Table of Contents

The Community Development & Humanitarian AssistanceProgram (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 2002-2004

WF4572 10.01 Lundin Petroleum AB - October 2001

Consortium Activities in Sudan

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).

The consortium is active in the area of

Block 5A within Unity State. It began its

exploratory activities on the Block in 1997

and drilled its first well in 1999. In March

2001, it made a significant oil discovery at

Thar Jath. It plans to continue seismic

acquisition and exploratory drilling in

2001-2003.

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Thar JathDiscoveryCENTRAL

AFRICAN REPUBLIC

CONGO

LIBYAEGYPT

CHAD

KENYA

ETHIOPIA

SOMALIA

ERITREAYEMEN

DJIBOUTI

SUDAN

Port Sudan

Khartoum

RedSea

BLOCK 5A

Existing Oil Fields

GNPOC

Existing Pipeline

Lundin Petroleum& Par tners

4

5B

5A

21

The Consortium

The Block

Block 5A Location

Lundin Petroleum AB - October 2001

Ongoing Operations in Sudan

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Drilling operations

Seismic acquisition

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Temporary settlement

Topography of the area

A Nuer village

Lundin Petroleum AB - October 2001

Block 5A Landscape

Reasons for CDHAP

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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 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.

CDHAP Objectives

Projects Overview

CDHAP Projects

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

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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 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.

Lundin Petroleum AB - October 2001

Projects Accomplished in 2001 - Freshwater Supply

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Local people taking water from cisterns

Water truck delivering freshwater

Lehr inhabitants drawing water from repaired well

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Projects Accomplished in 2001 - 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.

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Projects Accomplished in 2001 - 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.

Projects Accomplished in 2001 - Education

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Providing school equipment

Building Dorang school

Dorang school under a tree

Projects Accomplished in 2001 - Self-help Measures

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WFWW 4FF 584 10.01

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 theupcoming 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.

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.

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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. 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.

Lundin Petroleum AB - October 2001

Projects Accomplished in 2001 - Other Developments

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Bridge linking Rubkona to Bentiu and Block 5A

Rubkona market

Bus service at Jarayan

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Projects Accomplished in 2001 - 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.

Lundin Petroleum AB - September 2001

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Plans for 2002 - 2004

Future Plans

CDHAP will continue some of the activities it launched

in 2000-2001 but will also attempt to provide longer-

term 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.

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.

Hospital in Lehr to be renovated and staffed

School in Lehr to be renovated and equipped

Head of Corporate ResponsibilityLundin Petroleum6 rue de RiveCH-1211 Geneva 3Switzerland

Tel. (41-22) 319 6600Fax (41-22) 319 6615E-mail info@lundin.ch

For further information, contact

www.lundin-petroleum.com