Oil, Gas, and War: Analyzing China's Economic Stake in Sudan

This essay looks at China's political positioning in the Sudanese War - with a specific focus on their oil and gas investments

This essay was written by Mitchell Wang: a high school student from San Diego, California

The War in Sudan is characterized by intense warfare between Mohamed Hamdan Dagalo, leading the Rapid Supply Force (RSF), and the Sudanese Armed Force (SAF), led by Gen Abdel Fattah al-Burhan. The power struggle between the two military generals has led to huge humanitarian struggles, with large amounts of internal displacement and refugees fleeing to unstable regions. Furthermore, the civil war in South Sudan between President Salva Kiir and Vice-President Riek Machar has increasingly contributed to the humanitarian crisis, with 383,000 individuals having perished. The lasting warfare has also led to unstable agriculture and has furthered the effects of famine. The current humanitarian crisis in Sudan reflects a major lack of food. More than 25 million need humanitarian assistance, and from these numbers, 8.5 million people suffer from emergency levels of food insecurity, directly threatening their lives. The situation in South Sudan also displays 9.4 million individuals requiring humanitarian assistance. Border disputes between the nations, especially in regions such as Abyei, reflect the need for control over territory rich in natural gas and oil; resources critical to the economies of both Sudan and South Sudan. External forces have been playing a significant role in the ongoing conflicts, specifically the United Nations. Peacekeeping missions have been largely stationed in South Sudan and the border region, notably the United Nations Mission in South Sudan (UNMISS) and the United Nations Interim Security Force for Abyei (UNISFA) in the border region. Furthermore, the International Criminal Court has played a role, an example of which is the indictment of Omar al-Bashir following his crimes against humanity.

Photo by Patrick Hendry on Unsplash

China has played a significant role in Sudanese politics over the last two decades. China’s involvement in Sudan and South Sudan is largely economic, especially with regard to their investments in the natural gas and oil industry. Prior to 2011, Sudan was one of China’s largest sources of oil imports. China National Petroleum Corporation (CNPC, 中石油), and China Petroleum & Chemical Corporation (Sinopec, 中石化) are two major natural gas and oil companies in China that invest in operations in both Sudan and South Sudan. They are major factors in developing natural gas and oil infrastructure and companies in both the North and South. The CNPC has been involved in the Sudanese oil industry since 1990, aiding in the development of companies such as the Greater Nile Petroleum Operating Company (GNPOC). In South Sudan, the CNPC is also a major investor in the Dar Petroleum Operating Company (DPOC) since South Sudanese independence in 2011. Sinopec, while holding less influence than CNPC in Sudanese and South Sudanese affairs, has also been crucial in developing and sustaining natural gas and oil infrastructure in the two regions. On July 13th, 2023. Delegates from the Nile Petroleum Corporation and the National Oil and Gas Corporation of South Sudan visited China to discuss various collaborative initiatives. During this visit, the South Sudanese delegates engaged in discussions about integrating international students from South Sudan into the China University of Petroleum. This initiative aims to provide South Sudanese students with advanced education and training in the petroleum sector. The discussions reflect the strong and positive relationship between China and South Sudan, highlighting their wish to sustain strong economic ties through the natural gas and oil industry. As such, while there are no major diplomatic affairs between China and the African nations, major Chinese companies are largely active in the economic foreign policies in Sudan and South Sudan.

Photo by Ilyass SEDDOUG on Unsplash

The United Nations has already practiced peacekeeping missions in Sudan and South Sudan with the goals of humanitarian aid and retaining peace. China follows a policy of neutrality and disengagement in the affairs of foreign powers. While China is neutral in the conflict in Sudan and South Sudan, their major investments in the natural gas and oil industry in the two African countries are largely threatened by the ongoing conflicts. Conflicts over oil-rich regions lead to the destruction of infrastructure, such as pipelines crucial to the exportation of natural gas and oil. As such, China wishes to maintain peace and suppress conflict in Sudan and South Sudan. This is also expressed in China’s commitment to contributing to UN Peacekeeping missions in South Sudan. Ultimately, China supports the efforts of the UN and will act in agreement to actions that do not lead to the destruction of the existing gas and oil industry in Sudan and South Sudan.