A/HRC/40/CRP.1 This would be in line with some fundamental laws of the country, 953 often publicly reiterated by leading politicians, stipulating that all natural resources in South Sudan are owned by its people.954 It would also assist in the much needed diversification of the country’s economy,955 a goal underlined in the country’s Transitional Constitution956 and which, if implemented, would contribute to a sustainable economic and socio-political future for the country.957 2. South Sudan’s Oil Sector: Economy, Conflicts and Human Rights a) Historical context The presence of oil has inherently determined South Sudan’s political and economic fate ever since its discovery in the late 1970s, when the country was still part of Sudan.958 Oil exploration and production soon became both a reflection of, as well as a factor in, the country’s fragile security situation and ethnic and political divisions. 959 Already in 1984, the American company Chevron, which had been at the forefront of the discovery of oil in Unity and Upper Nile States, halted its operations after a deadly attack by South Sudanese militia. 960 From the 1990s onwards, the Sudanese Government continued to aggressively pursue exploration of an increasing number of oil fields - most of them located on the territory of what is now South Sudan – with increasing engagement by Canadian, European and later Asian oil companies, and with support of the Sudanese army and its proxy paramilitary groups.961 Due to their location and demographics, some key oil field areas in the southern states of Unity and Upper Nile, near what now forms the border between the two Sudans, soon became flashpoints in the second Sudanese civil war, which spanned the period 1985 to 2005. The contestation in these areas was intense, and alongside the fighting between the Sudanese Armed Forces and the SPLA led by John Garang, each side mobilised or spawned militias or breakaway factions, with Nuer militias particularly active in Unity, former First VicePresident Riek Machar’s home State. The long civil war was waged with a brutal intensity in the areas where oil was being exploited, notably in Unity State, which rapidly became the focal point of hostilities,962 with devastating consequences for the lives of hundreds of thousands of the civilian population, who suffered serious and large-scale human rights violations, notably forcible displacement and arbitrary killings.963 Over the years, these human rights violations have been documented by both non-governmental organizations and consultants, and (partially) as a result of the international outcry over oil-related abuses, some Western European and Canadian companies withdrew from the Sudanese oil operations. 964 As discussed further down in this section, the Commission believes there has been a lack of corporate accountability for transnational companies, several of which were conducting profitable business in oil953 Transitional Constitution (2011) (as amended), Article 172(1). Presentation of Ezekiel Lol Gatkuoth, Africa Oil & Power Conference, Juba, November 2018. 955 Patey, L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, p. 248. 956 The Transitional Constitution (2011) stipulates that oil revenues shall be used to “develop other sectors of the economy, especially agriculture” (Article 172(2)(d)). 957 Patey, L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, p. 248. 958 Patey, L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, pp. 13-14. 959 Patey, L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, pp. 43, 192201. 960 Patey L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, pp. 1-3; 38. 961 James, Laura M., “Fields of Control: Oil and (In)security in Sudan and South Sudan”, Small Arms Survey, Human Security Baseline Assessment for South Sudan and Sudan, Working Paper 40, 2015, p. 17. 962 Human Rights Watch, “Sudan, Oil and Human Rights”, 2013, pp. 66; see also pp 156-157, 521; European Coalition on Oil in Sudan, Unpaid Debt, The Legacy of Lundin, Petronas and OMV in Block 5A, Sudan, 1997-2003, 2010, p. 7; European Coalition on Oil in South Sudan/PAX, “Scrutiny of South Sudan’s Oil Industry: Community Relations, Labour Practices and Impact on Land Use Patterns”, 2014, p. 17. 963 European Coalition on Oil in Sudan, Unpaid Debt, The Legacy of Lundin, Petronas and OMV in Block 5A, Sudan, 1997-2003, 2010, pp. 38-74 Patey, L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, pp. 43, 58-60. 964 Patey, L., The New Kings of Crude, China, India and the Global Struggle for Oil in Sudan and South Sudan, 2014, pp. 57-75; European Coalition on Oil in Sudan, Unpaid Debt, The Legacy of Lundin, Petronas and OMV in Block 5A, Sudan, 1997-2003, 2010. 954 125