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Decisive round of oil talks between Sudan & South Sudan on Tuesday


March 4, 2012 (KHARTOUM) – The governments of Sudan and South Sudan are set to start a decisive round of talks on oil in the Ethiopian capital on Tuesday but with slim prospects of success.

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South Sudanese men look at shrapnels from one of the bombs which hit El Nar oil field on March 1, in Unity State on March 3, 2012 (AFP)

Khartoum’s delegation led by presidency state minister Idriss Abdel-Gadir is expected to reaffirm previous demands that Juba pays $36 per barrel of oil exported through the north’s pipelines. This charge includes multiple fees such as transit, transportation, processing and marine terminal usage.

But the figure was deemed excessive by South Sudanese negotiators in the past who insist on a transit fee of $0.63 and $0.69 for each of two pipelines, along with third-party fees of between $5.50-$7.40 per barrel, according to breakdown reported by the Financial Times.

The landlocked South suspended its oil production last month after Khartoum started seizing some the of its oil to pay for what it says are past due invoices.

Despite regional and international pressure, the two sides refused to reverse the unilateral decisions they made with regards to oil.

The African Union High Level Implementation Panel (AUHIP) led by former South African president Thabo Mbeki has put a 10 day time frame on the current round of talks, though sources in Khartoum expect the negotiations to end before that.

The sources said they expect AUHIP to push for a compromise involving payment by Juba of $150 million to Khartoum for three months in return for exporting its oil without it being confiscated or asking for additional fees.

China might join the negotiations should the talks progress, sources added.

It is not clear what the next step would be if talks fail again. Sudan accused Juba of seeking to strangle it economically by shutting down the oil.

South Sudan voted overwhelmingly to secede last year, the culmination of a 2005 peace agreement that ended decades of civil war.

At partition, three quarters of Sudan’s known oil reserves fell in South Sudan’s territory.

The South depends on oil for more than 90 percent of its revenues, while Khartoum’s finance minister said late last year that the loss of oil from the South left a budget shortfall of 30 percent.


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  • 5 March 2012 12:00, by Loko El Pollo


    repondre message

  • 5 March 2012 13:46, by Chok Deng

    Jalaby,time will prove who are thieves.Let hellic demands of yours jump upto infinity,you are oil dependent gangs,i heard u and Bashir are going naked in Khartoum streets because of oil absence in your mouths.if ur still in doubt i will give u more evidences to prove who is nervous about oil.

    repondre message

  • 5 March 2012 14:34, by Longa

    If Icould ask,do North Sudanese eat petroleum like jam? That they could not do without it. Last time, Beshir was saying they have gold and more oil in the north, then why are they insisting of the oil in South Sudan?I know Sudan is pushing to have 50% of South oil share. The first thing is to agree on Abyei and boarder demarcation. Not just rushing for money and keep dodging the other issues.

    repondre message

  • 5 March 2012 18:11, by BM Bol

    As far as I am concern there’s nothing decisive or new about this negation. South Sudan position is very clear from day one and that’s we are NOT going to pay $36 per barrel as demanded by Khartoum. Juba focus more on building alternative pipelines it recently agreed upon with Kenya and Ethiopia.

    repondre message

  • 5 March 2012 19:04, by James Maker Akok

    No agreement on oil pipeline to North Sudan, enough is enough no more cheating.

    repondre message

  • 5 March 2012 22:42, by Longa

    What power has AUHIP to dictate the coming talks in Addis Ababa? Telling that talks will be based on oil only. Let see how it will work out. South Sudan is sovereign country. Nobody or no institution or a country can push to do something its will. The oil is the property of South Sudan. AUHIP is only entrusted to facilitate the negotiation but not to come and dictate over the talks.

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  • 6 March 2012 06:19, by Ran Nathdial

    Our negotiators from RSS are not going to Adisababa for a decive talk with u thugs in khartoum. Don’t ever expect that to happen. You look for your own way of economic dependency not our oil idiots!!!.....

    repondre message

  • 6 March 2012 06:42, by acuil deng

    The criminal gang in Khartoum should know that we’ve got the gold; therefore, we make the rules. We’ve got the upper hand and they know it. Khartoum’s right hand should be cut off for stealing our oil, and that’s their justice.

    repondre message

  • 6 March 2012 08:45, by Ngundeng jr

    No Deal. Build the Lamu Port.

    repondre message

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