In First Since Nuremberg Trials; Sweden Charges Corporate Executives Of Oil Company Lundin With Complicity In War Crimes In Sudan

Two key executives of Lundin Energy, a Swedish oil company, were charged by country's prosecutors with complicity in war crimes perpetrated by Sudanese army and allied militia in southern Sudan from 1999 to 2003, Reuters reported.

The move from Swedish authorities is the first time business managers and owners have been charged for complicity in war crime since Nuremberg trials.

Ian H. Lundin, the chairman and Alex Schneiter, who served as the CEO from 2015 to 2020, were both charged by prosecutors in Stockholm.

Swedish Prosecution Authority alleged that Ludin requested the Omar al-Bashir-led Sudanese government to secure an oil field knowing fully well that this would necessitate attacks on civilians by the army.

The prosecutors are seeking to confiscate 1.39 billion crowns ($161.7 million) from Lundin Energy, corresponding to the profit the company made from the sale of the Sudan business in 2003.

Lundin Energy, an independent oil and gas exploration and production company, is based in Sweden but energy assets are predominantly based in Norway.

Oil Exploration and Development In South Sudan

Ever since Sudan gained its independence from the United Kingdom in 1956, it has been mired in internal civil war. While North is predominantly Muslim and wielded political power, the South is predominantly Christian and holds much of the natural resources. The South obtained independence in 2011.

In February 1997, Lundin signed an agreement with the Government of Sudan to explore for oil in an area called Block 5A, in the then southern part of Sudan in Unity State, an area that today belongs to the independent state of South Sudan

A consortium of companies including Lundin Petroleum, OMV, and Petronas were involved in oil exploration in Block 5A. After oil field development began during the Second Sudanese Civil War, Block 5A was the scene of extensive fighting as rival militias struggled for control.

In June 2010, the European Coalition on Oil in Sudan urged governments of Sweden, Austria and Malaysia to look into allegations that the companies Lundin Petroleum, OMV, and Petronas have been complicit in the commission of war crimes and crimes against humanity whilst operating in Block 5A between 1997 and 2003.

In 2010, Swedish public prosecutor for international crimes opened a criminal investigation into links between Sweden and the reported crimes.

Ludin Energy Refutes Allegations

Both executives and the company have denied the charges.

The company said that it carried out fully legitimate and responsible business operations in Sudan as part of an international consortium. It operated within a framework of constructive engagement in the country as endorsed by the UN, EU and Sweden.

"This case is both unfounded and fundamentally flawed. There is no evidence linking any Company representative to the alleged primary crimes in this case and we see no circumstance in which a corporate fine or forfeiture could become payable given this fact. The Company intends to firmly contest the claims for a corporate fine and forfeiture of economic benefits and does not foresee any impact on the operational and financial guidance that has been set out previously.” the company said in an official statement.