Unveiling the Enigmatic Deal: UAE's 20-Year Agreement to Acquire South Sudan Oil

The oil deal signed by the government of South Sudan in December 2023 with an enigmatic Emirati company raises concerns and questions about the potential for fraud.

The enigmatic company is led by a man named Adel al-Otaiba, who also goes by the name Hamad bin Khalifa, and is suspected of involvement in international financial crimes.

This deal represents one of Africa's largest recorded oil agreements in recent years, amid fears of its repercussions.

Suspicious Figure

South Sudan signed a contract with a small Dubai-based company called "HBK DOP" (Hamad bin Khalifa for Project Management) for a €12 billion loan to be repaid with oil.

Under the agreement, the Emirati company effectively secures discounted access to South Sudan's oil for 20 years, which constitutes 90% of the country's revenues.

The company is chaired by Adel al-Otaiba, who presents himself as a relative of the Emirati President, Mohammed bin Zayed.

According to a report by Africa Intelligence on June 18, 2024, the relationship between bin Zayed and al-Otaiba is distant, with their grandfathers having been cousins of the UAE's founder, Zayed bin Sultan al-Nahyan.

None of al-Otaiba's family members hold official positions in the UAE government, but he has changed his name to Hamad bin Khalifa bin Mohammed al-Nahyan for his business dealings, preceded by the title "Sheikh," which many believe he does not rightfully deserve.

Al-Otaiba resides with his wife and four children in Abu Dhabi, rarely appearing there or attending dinners in Dubai.

At the bottom of the three-page contract documents, endorsed by then South Sudanese Minister of Finance, Bak Barnaba Chol, al-Otaiba's signature appears under the name Sheikh Hamad.

Benjamin Paul Mille, one of the most influential advisors to former South Sudan President Salva Kiir, oversees this agreement, while its final terms remain under negotiation.

The French magazine suggests that South Sudan did not thoroughly vet the company HBK DOP, which barely has a well-functioning website and hides behind a number of exaggerated self-profiled businessmen.

Among these figures is Kenyan national Anwar Majid Hussein, who previously worked with Kenyan opposition leader Raila Odinga, and financial banker Mohamed Diallo.

In their business dealings, these individuals boast questionable credentials and sometimes fabricate professional backgrounds with fictitious companies, all united by their involvement in this controversial operation in South Sudan facilitated by the UAE.

Misleading Identity

What's most concerning is al-Otaiba's international activities and dangerous precedents, some of which are linked to the Israeli Occupation.

In December 2020, Israeli financial intelligence firm Megiddo revealed an investigation into Adel al-Otaiba, operating under the alias Sheikh Hamad, as a potential buyer of a 50% stake in the Israeli football club Beitar Jerusalem for $32 million.

The agency discovered that HBK comprises companies purportedly involved in sectors like cryptocurrency and renewable energy, but in reality, they have minimal investments.

In this context, it's known that the company includes the Arab Investment Development Authority (AIDA), whose initials resemble those of the Abu Dhabi Investment Authority (ADIA).

Additionally, the Hebrew press published some of the findings by Megiddo, causing significant outrage.

Al-Otaiba has deceived numerous companies in Asia and Europe since 2019. He also collaborated in Britain with Sencer Sevket, a Cypriot sentenced to seven years in a UK prison in 2013 for fraud.

Further, al-Otaiba worked with two Iranian businessmen residing in Dubai, Rahmatollah Bakhtari-Mousavi and Hedayatallah Bakhtari-Mousavi, whom U.S. financial investigators suspect of violating sanctions against Tehran.

Among the architects of the controversial oil deal, a man from South Sudan named Paul Mille stands out.

Despite U.S. sanctions imposed on him in 2021, Paul Mille remains a pivotal figure in the "cash-for-oil" deal with al-Otaiba.

He operates within President Salva Kiir's inner circle, which explains the UAE's keen interest in him.

Paul Mille frequently travels to Dubai where his wife resides and has been staying at the luxurious Jumeirah Beach Hotel since mid-May.

He holds influential positions on the board of directors of the government-owned company Nilepet and is Kiir's right-hand man on various issues including oil, continuing negotiations on the deal with Adel al-Otaiba.

Dire Situation

Fearing the potential repercussions of such an agreement on South Sudan's fragile economy, major financial institutions like the World Bank and the International Monetary Fund closely monitor the situation.

South Sudan, already heavily dependent on these entities, seeks a fresh injection of $250 million from the IMF to help address its economic crisis, in addition to receiving $114 million in aid in January 2024.

Considering South Sudan's overall economic situation in light of the deal with the UAE, it's clear why the international community is concerned.

In April 2024, South Sudan's Auditor General Steven K Wondu confirmed that these funds were spent in mysterious ways.

In May 2024, the World Bank and IMF set conditions for a new loan, with South Sudan weeks away from defaulting on a $1 billion debt to the Qatar National Bank.

Despite the international community's insistence on South Sudan's financial transparency, Juba authorities are not responding well to this condition.

This was one of the main contentious points in the sale of Malaysian company Petronas' oil assets in South Sudan to British company "Savannah Energy."

Meanwhile, Salva Kiir strongly opposes this $1.25 billion deal, which requires some financial transparency from Juba.

The Oil Deal to Dubai

The UAE's exploitation of South Sudan's economic crises and pushing this obscure company into the oil market there may be explained by the fact that Juba is on the brink of bankruptcy. 80% of its oil exports were cut off after the pipeline linking the Upper Nile oil fields to the Red Sea was damaged in February 2024 due to the ongoing war in Sudan.

To confront the risk of such an economic catastrophe, which could directly challenge his leadership, President Salva Kiir is seeking a strategy to emerge from this situation.

In contrast, through al-Otaiba, the UAE has exploited this situation, posing a significant concern for South Sudan's partners, especially the World Bank and the International Monetary Fund.

According to a Bloomberg Middle East report published on April 26, 2024, the deal's size is approximately double the GDP of famine and conflict-ridden South Sudan.

Documents reviewed by investigators allocate 70% of the funds to infrastructure.

They also concluded that a UAE loan of this magnitude, nearly five times the country's current external debt, could likely hinder South Sudan's oil revenues for many years to come.

On April 30, 2024, the Sudanese local newspaper al-Rakoba published an investigative report on this issue titled: "UAE Buys South Sudan Oil for the Next Twenty Years." 

The report stated that "the UAE has recently opened up multiple investment prospects between oil and ports, whether in Africa or elsewhere."

“The deal will not only affect the course of the oil industry in South Sudan but may also revolutionize global oil industry dynamics regarding barrel prices on global exchanges,” according to the same source. 

The report concluded by posing a question: "What is the plan regarding almost all of South Sudan's oil going to Dubai?"