¹ MNCs (the other terms referring to MNCs are multinational enterprises (MNEs) and Trans-national Corporations (TNCs)). TNCs is the term used in the UN documents. As a general definition, MNCs usually comprise companies or other entities whose ownership is private, state, or mixed, established in different countries and United in such a way that one or more of them may be able to exercise a significant influence over the activities of others, and, in particular, to share knowledge and resources with the others. For discussion on terms and definitions of Multinational Corporations see, Muchlinski, P., Multinational Enterprises and the Law, Oxford, 1995, 12.Google Scholar

² See Ross, T. D., “The Status and Strategies of the International Oil Companies”, in Rees, J. and O'Dell, P. (eds.), The International Oil Industry, London, 1987, 67.CrossRefGoogle Scholar

³ See E. Penrose, “The Structure of the International Oil Industry: Multinationals, Governments and OPEC”, in Rees and O'Dell (eds.), op. cit., n. 2, 9.

⁴ Economic growth is usually defined as the increase in the stock of economic assets, including consumption of goods and services, producers' goods, and skill or non-human capital over a given period of time. Growth is thus measured as change in per capita gross domestic or national product, usually over one year. See Ahiakpor, J. W., Multinationals and Economic Development: an Integration of Competing Theories, London, 1990, 18.CrossRefGoogle Scholar

⁵ Economic development is denned to include other characteristics besides increases in per capita income. It refers to improvements in the distribution of income. It generally includes, a greater proportion of the population having gained more access to such public goods, schools, hospitals, means of communication and transportation over time, and general improvement in production operations and the quality of life. See Ahiakpor, Ibid., 18.

⁶ According to the United Nations Development Program, developing countries are defined as all countries other than Canada, Europe, the United States, Australia, New Zealand and Japan, including a number of countries that have relatively high per capita incomes, such as Saudi Arabia and Singapore. According to the GATT provisions (Art. XVIII: 1), they are denned as contracting parties whose economies can only support low standards of living and are in the early stage of development. See Trebilcock, M. and Howse, R., The Regulation of International Trade, New York and London, 1995, 581.Google Scholar

⁷ See Johnson, G. Harry, “The efficiency and welfare implications ofthe international corporations”, (1989) 52 International Organization 101–129.Google Scholar

⁸ Technology, for present purposes, may be denned as “systematic knowledge for the manufacture of a product, for the application of a process or for the rendering of a service and does not extend to the transactions involving the mere sale or lease of goods”. See UNCTAD, Draft of International Code of Conduct on the Transfer of Technology, as at the close of the sixth session of Conference on 5 June, 1985, ch. I, paras 1 and 2.

⁹ See Jain, S. C. and Puri, Y., “Role of multinational corporations in developing countries: policy makers' views”, in Gosh, P. (ed.), Multinational Corporations and Third World Development, Connecticut and Westport, 1990, 114.Google Scholar

¹⁰ Louis Well, T., “More or less poverty, the economic effects of multinational corporations in developing countries”, in Madden, C. (ed.), The Case for Multinational Corporations, New York, 1987, 71.Google Scholar

¹¹ Bendi, M., “Sudan oil industry profile”, London, 1997, 1, also found at http://mbendi.co.za/cysuoi.htmGoogle Scholar

¹² Imported crude oil is processed at Port Sudan Refinery. Ibid., 1.

¹³ Gabb, Sean, “Oil potentiality in the Sudan: exploration and production”, (1997) 2 Sudan Foundation Economic File 2.Google Scholar

¹⁴ Kobin, Stephen, “Expropriation as an attempt to control foreign firms in less developing countries: trends from the 1960s–1970s”, (1984) 18 International Studies Quarterly 329.CrossRefGoogle Scholar

¹⁵ Muchlinski, op cit., n. 1, 22.

¹⁶ Manniruzzaman, A., “The new generation of energy and natural resources agreements: some reflections”, (1993) 11 Journal of Energy and Natural Resources 212.Google Scholar

¹⁷ Ibid., 212.

¹⁸ Chiati, A. Z., “Protection of investment in the context of petroleum agreements”, (1987) 204 Hague Recueil des Cours 9–18.Google Scholar

¹⁹ Agip carried out a seismic survey of about 200,800 kilometres, and drilled six exploratory wells. In the northern part of the Red Sea, seismic survey of 1,834 kilometres was conducted by Oceanic and one exploratory well was drilled by Texas Eastern.

²⁰ Kobin, op. cit., n. 14, 330.

²¹ The group was named after the 77 original countries that formed it.

²² Muchlinski, op. cit, n. 1, 6

²³ Kobin, op cit., n. 14, 338.

²⁴ Moran, Theodore, Multinational Corporations and Developing Countries, Toronto, 1985, 5.Google Scholar

²⁵ See Junginckal, Rolf and Koopmann, George, “The role of multinationals in the new international economic order”, in Ghosh, K. (ed.), Multinational Corporations and Third World Development, London, 1990, 114.Google Scholar

²⁶ Kobin, op cit., n. 14, 339.

²⁷ See Kennedy, Charles, “Relationship between transnational corporations and governments of host countries: a look to the future”, (1992) 1 Transnational Corporation 76.Google Scholar

²⁸ Ibid., 77.

²⁹ See Bechtold, Peter, Politics in the Sudan, London, 1976, 211.Google Scholar

³⁰ Igbokwe, Virtus, “Developing countries and the law applicable to international arbitration of oil investment disputes: has the last word been said”, (1997) 14 J. of Int. Arbt. 117.Google Scholar See also Davis, Michael H., “Oil concession agreements in the Arab Republic of Egypt”, (1982) 10 International Business Lawyer VI.Google Scholar

³¹ Bechtold, op cit., n. 29, 212.

³² Manniruzzaman, op cit., n. 16, 213.

³³ Moran, op cit., n. 24, 6.

³⁴ Below, 6.

³⁵ Manniruzzaman, op. cit., n. 16, 223.

³⁶ Ibid.

³⁷ Bendi, op. cit., n. 1, 4; Igbokwe, op. cit., n. 30, 116. See also Davis, op. cit., n. 30, VI.

³⁸ Manniruzzaman, op. cit., n. 16, 224.

³⁹ Ibid.

⁴⁰ Ibid.

⁴¹ For a detailed discussion of these other contractual forms, see Ibid., 223–228.

⁴² Bechtold, op. cit., n. 29, 212.

⁴³ The public sector was to be a pioneer sector and to lead progress in all fields of development and to be based on public ownership and subject to people's control. The co-operative sector was to be based on collective ownership by all members participating in co-operative societies. The state was to care for the co-operative societies and the law was to regulate their formation and management. The private sector was to be based on non-exploiting private ownership. The state was to protect and encourage it and organize its functions so as to enable it to play a positive and active role in the national economy.

⁴⁴ Sheikh, E. El, The Legal Regime of Foreign Pnvate Investment in the Sudan and Saudi Arabia, Cambridge, London, Melbourne, 1984, 7.Google Scholar

⁴⁵ Ibid., 9.

⁴⁶ It was granted concessions in the southern and The middle area of the Red Sea. After finding almost 300 million barrels of oil in Sudan during the early 1980s, Chevron scuttled a $2 billion project to export 50,000 barrels per day of Sudanese crude in 1986. It drilled 90 wells and sank more than $1 billion into the project. See “Oil development project called off in Sudan”, (15 September, 1986) Oil and Gas Journal 42.

⁴⁷ Ibid., 42.

⁴⁸ Bendi, op. cit., n. 11, 3.

⁴⁹ The oil fields discovered in the 1960s and 1970s and only partly developed are in the Muglad Rift Basin Complex in southern Sudan. The Heglig field has an estimated yield of 25,000 barrels/ day yield. The main oil areas of the Red Sea Coastal Zone and the southern part of the country have not been exploited.

⁵⁰ World Bank, “Refocusing on the effectiveness of the state”, World Development Report, New York, 1997, 29.Google Scholar

⁵¹ Bendi, op. cit., n. 11, 4.

⁵² International Monetary Fund, “Sudan recent development”, (February 15, 1995) IMF Staff Country Report No. 92/12, Washington DC, 1995, 2.

⁵³ El Sheikh, op. cit., n. 44, 48.

⁵⁴ Usually foreign companies invest in products that can be exported to compete in the international markets, however, they are not encouraged to invest in products for national use and consumption.

⁵⁵ Bendi, op. cit., n. 11, 3.

⁵⁶ Oil and Gas Journal, op. cit., n. 46, 42.

⁵⁷ Pauly Knox, “Fighting in Sudan threatens oil project”, (February 14, 1998) Globe and Mail A 13.

⁵⁸ Since the Sudan gained its independence in 1956, it has had two democratic systems, in 1964 and 1985, and three military regimes 1957, 1969 and 1989.

⁵⁹ International Monetary Fund, op. cit., n. 52, 7.

⁶⁰ Gabb, op. cit., n. 13, 3.

⁶¹ Bendi, op. cit., n. 11, 4.

⁶² The distribution infrastructure consists of rivers, roads, pipeline and railway systems, all of which are in need of improvement. There is a product jetty at Port Sudan to the major consuming centre of the capital Khartoum. Sudan is dependent on imported petroleum products as its domestic production and refining capacity is not sufficient to cater for its needs. The country has a small refinery at Port Sudan.

⁶³ Bendi, op. cit., n. 11, 4.

⁶⁴ Ibid., 5.

⁶⁵ This Act was made in accordance with the provisions of Article 27, of the Fifth Constitutional Decree 1991 by the President of the Republic. It repealed the Investment Act of 1990.

⁶⁶ See s. 7 of The Act.

⁶⁷ Bendi, op. cit., n. 11, 4.

⁶⁸ International Monetary Fund, op. cit., n. 52, 1–7.

⁶⁹ Ibid., 2

⁷⁰ World Bank Report, op. cit., n. 50, 11.

⁷¹ Ibid., 37.

⁷² Bardhan, Pranab, “Method in the madness? A political economy analysis of ethnic conflicts in less developing countries”, University of California, Berkeley, 10–11.Google Scholar Found in The Law and Development Course Materials, Vol. II, 9.Google Scholar

⁷³ Sudan Net News, September 1997.

⁷⁴ Oil and Gas Journal, op. cit., n. 46, 42.

⁷⁵ Knox, op. cit., n. 57, A 13.

⁷⁶ El Sheikh, op. cit., n. 44, 49.

⁷⁷ United Nations Centre on Transnational Corporations, “Relations between host developing countries and transnational Corporations”, in Transnational Corporations in World Development: Trends and Prospects, New York, 1988, at 314–329.Google Scholar

⁷⁸ Ibid., 312.

⁷⁹ Ibid.

⁸⁰ Ibid.

⁸¹ Ibid., 313.

⁸² Trebilcock, Michael J., “What makes poor countries poor? The role of institutional capital in economic development”, in Buscaglia, E. (ed.), The Law and Economics Devebpment, Connecticut, 1997, 15–52.Google Scholar

⁸³ My survey on various materials shows that, since Sudan gained independence, its constitution has been changed five times and its laws and regulations governing oil investment ten times.

⁸⁴ Trebilcock, op. cit., n. 82, 20.

⁸⁵ For detailed discussion of Ghana, Egypt, Tanzania, see UN Centre on Transnational Corporations, op. cit., n. 77, 314.

⁸⁶ Ibid.

⁸⁷ Ibid.

⁸⁸ Igbokwe, op. cit., n. 30, 121.

⁸⁹ Ibid.

⁹⁰ Gabb, op. cit., n. 13, 6.

⁹¹ Bendi, op. cit, n. 11, 5.

⁹² Gabb, op. cit., n. 13, 7.

⁹³ Ibid.

⁹⁴ Manniruzzaman, op. cit, n. 16, 224.

⁹⁵ This agency has been established under the Geological Research Authority Act 1986.

⁹⁶ Gabb, op. cit., n. 13, 7.

⁹⁷ Igbokwe, op. cit., n. 30, 118–119.

⁹⁸ Ibid., 119.

⁹⁹ Ibid., 99.

¹⁰⁰ UN Centre on Transnational Corporations, op. cit., n. 77, 315.

¹⁰¹ Kennedy, op. cit., n. 27, 78.

¹⁰² S. 12, Encouragement of Investment Act, 1996.

¹⁰³ Art. 58 of the constitutions of the Sudan, 1973 and 1985 provides that subject to art. III hereof, any person aggrieved by any law passed by legislative authority may institute a civil suit before the Supreme Court to declare such law void on the ground of its violation of the freedoms and rights guaranteed by this constitution. Art. III deals with the right of the president to declare a state of emergency in case of imminent danger threatening the independence or integrity of the country and the safety of its territory or economy.

¹⁰⁴ El Sheikh, op. cit., n. 44, 326.

¹⁰⁵ Trebilcock, op. cit., n. 82, 35.

¹⁰⁶ Ibid.

¹⁰⁷ UN Centre on Transnational Corporations, op. cit., n. 77, 315.

¹⁰⁸ Sornarjah, , “The climate of international arbitration”, (1991) 8 J. of Int. Arb. 54.Google Scholar

¹⁰⁹ To quote the typical provision: “the signatories base their relations with respect to this agreement on the principles of good will and good faith. Taking into account their different nationalities, be given effect to be interpreted and applied in conformity with the principles of law common to the Arab Republic of Egypt and the contractor's country and in the absence of such common principles normally recognized by civilized nations in general, including those which have been applied by International Tribunals”. Davis, op. cit., n. 30, IX.

¹¹⁰ Igbokwe, op. cit., n. 30, 119.

¹¹¹ Sudan Laws, 4th edition, Vol. 4, 1982.Google Scholar

¹¹² Section 32 of the Sudan 1980 Encouragement of Investment Act provides: “(a) If a national, Arab, or foreign investor obtains any privileges and facilities or guarantees under this Act, this will be regarded as a consent by him to submit to arbitration any legal disputes arising in accordance with the provisions of sub-sections (2), (3), and (4) of this section; provided that the Sudan shall be the place of arbitration. The Government of the Sudan shall be bound to make available all facilities required by arbitration. (2) The provisions of chapters IV and VI of the Civil Procedure Act, 1974, relating to arbitration, shall apply to every legal dispute arising directly from investment of national capital in any project. (3) The provisions of the Convention of Settlement of Investment Disputes between Host States for Arab Investment and Nationals of Other Arab States, 1972, shall apply to every legal dispute arising directly out of any of the investment to which that Convention applies. (4) The provisions of the Convention of Settlement of Investment Disputes between States and Nationals of Other States, 1965, shall apply to every legal dispute arising directly out of any investment to which the provision of that Convention applies.”

¹¹³ For text see L.S.D.R.S.G. No. 1244, 15 July, 1978, at 18.

¹¹⁴ El Sheikh, op. cit., n. 44, 327.

¹¹⁵ S. 30 of 1996 Encouragement of Investment Act provides in sub-section (1) that: save such disputes, as may be governed by the provisions of the agreements, set out in sub-section (2), where a legal dispute relating to investment arises, the same shall be submitted for reconciliation, or arbitration, or to be settled in accordance with provisions of the Civil Procedure Act of 1983, or such other law, as may replace the same. In case of agreement the Sudan shall be the place for reconciliation or arbitration. The state shall be bound to providing all such facilities, as may be required by the procedure thereof. Sub-section 2 provides: the provisions of the Investment of Arab capitals in the Arab States United Agreement, 1980; the Settlement of Disputes Between the Arab States Host of Arab Investment and Between Citizens of Arab States Agreement, 1974; the Settlement of Investment Disputes between the States and the Citizens of Other States Agreement, 1965; the Economic, Technical and Commercial Co-operation Between the States Parties to the Islamic Congress Organization Agreement, 1977; and any other agreement, in this respect, as the Sudan may be a party thereto, shall apply to any legal disputes, as may directly arise, from any of such agreements.