National oil company Petronas should cease its business operations with the Sudanese government in view of gross violations of human rights being by carried out by the state-backed militia group in famine stricken Darfur.

The Labour Resource Centre (LRC) said Petronas' business pursuits have raised questions on its corporate social responsibility obligations.

The labour group added that this was inconsistent with the government's aspiration and position as chair of the Organisation of Islamic Conference (OIC) and as a member of the United Nations Human Rights Council.

"The on-going oil deal in Sudan is feared to have contributed to the ongoing massacre and the government-owned Petronas is deemed to have fueled the crisis indirectly.

"Various reports have confirmed that the oil benefits have contributed towards military expenditure and armed rebel groups in their killings," said LRC in a statement today.

Petronas International Corp - Petronas' wholly-owned subsidiary - has a 50:50 ownership deal with Sudan's Energy and Mining Ministry to build a 100,000 barrels per day refinery in Port Sudan estimated to be worth US$ 1 billion.

The multinational corporation is also a 40 percent stakeholder of PetroDar Operating Co, which along with other national oil companies, hold the rights for exploration and development in two blocks.

Make Petronas accountable

LRC said if Malaysia was serious about promoting development prospects in the world's least developed countries, it would mean having to regulate its own companies.

"Trade relations between Malaysia and Sudan have been described as clearly pursuing business as usual with a government stepping up a war against its own people," it added.

The labour organisation recommended that the government suspend and withdraw all Petronas personnel from Sudan until there is a just and lasting peace in the region.

"Malaysia must also introduce binding human rights legislation to hold a company accountable for its activities overseas - either directly or through an affiliate," it said.

LRC also said Malaysia must urge the Sudanese government and its armed groups to abide by the Geneva Convention and respect the rights of civilians and negotiate for a lasting peace agreement.

War-torn Darfur in Western Sudan is the site of an on-going inter-ethnic war. Millions of people have been displaced by the conflict while tens of thousands more have died from the strife and famine.

Petronas' business dealings with the Burmese junta have also been blamed for indirectly perpetrating gross human rights violations.

The latest deal between the two governments were struck earlier this year, despite Malaysia's strong position against the junta's appalling human rights record and resistance towards adopting democracy.