Home | News    Saturday 28 January 2012

Khartoum sells South Sudan’s oil at discount as Juba vows to sue buyers

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January 27, 2012 (NAIROBI) – South Sudan has threatened litigation against those who purchase its oil from neighboring Sudan after Khartoum reportedly sold crude seized from the newly independent state at millions of dollars discount.

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South Sudan’s Minister of Information and Broadcasting, Barnaba Marial Benjamin (Gurtong)

A bitter dispute between the recently separated countries over the fees land-locked South Sudan should pay for the use of Sudan’s pipeline infrastructure to export its oil has escalated dramatically in recent weeks after Juba accused Khartoum of diverting oil to its refineries and blocking shipments.

South Sudan says Khartoum has “looted” revenues amounting to $815 million, according to its president Salva Kiir Mayardit, while Sudan says it confiscated oil after Juba failed to pay any transit fees since the South seceded from Sudan in July last year, taking with it over 70 percent of Khartoum’s oil wealth.

As talks to resolve the dispute floundered, the south decided to shut down oil production countrywide and seek an alternative route to export the commodity.

It was revealed on Friday that Sudan has sold a shipment loaded with 600,000 barrels of crude it seized from South Sudan to a north Asian trader at a discount as steep as $14, Reuters reported, citing anonymous sources.

According to Reuters, this indicates an $8.4 million discount for the whole cargo versus the last official price charged by the South.

The sold crude was loaded onto three tankers from January 13-20, according to South Sudan’s justice ministry.

"This is crude from the South sold by the North at a $14 discount to the South’s last selling price," Reuters quoted a Middle East-based crude trader as saying. “The tanker is heading to Singapore,” another source said.

South Sudan’s Minister for Information and Broadcasting Barnaba Marial Benjamin said, when contacted by Sudan Tribune on Friday, that he was not aware of the reports on Khartoum’s discounted sale.

However, he warned that legal action awaits the government of Khartoum and anyone who buys South Sudan’s oil from it.

Benjamin noted that his country had already issued an international legal notice warning potential buyers that they risk lawsuits if they deal in South Sudan’s “stolen property”

The minister further said that South Sudan would also sue the government in Khartoum if it indeed sold South Sudan’s oil.

(ST)

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  • 28 January 2012 06:54, by NUER ONE

    How can khartoum divert the oil without inforning Juba,they are looking for war with south.Arabs are useless in their life.

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    • 28 January 2012 09:08, by john agoet

      To NURE ONE
      You are right brother; they will never leave us alone. Nothing good ever comes from their side, look since ever are using “ divide and rule policy” always creating conflicts among our people in the south, keep us busy with wars and no development .that why we need united sooner than ever and let them descend

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      • 28 January 2012 14:03, by SSLA/M Supporter

        Breaking news!

        Sudanese authority has decided to release S Sudan oil amount to 2 million barrel, currently being detained in the Port Sudan, as a good gesture to defuse the escalating tension between our two brotherly countries! according to al Jazeera TV channel! Very good news from the mature leadership of NCP led by President Al Bashier!

        repondre message

    • 28 January 2012 09:58, by Acinitos

      I hope South-Sudan you have right to sue Khartoum rather than the buyer.If you sue the buyer you may lose the case or it will be dismised. You can sue Khartoum of stealing your Oil.and coursing tention to the Region ,and whatever will help.do not sue the buyer,sue the theft.Buyer is wrong party to sue.It will be Khartoum right to go after the buyer if they wanted no you.

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      • 28 January 2012 10:04, by Acinitos

        Sue Khartoum to pay with Interest and mental touched course fear and an safe living to neightboring country.

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        • 28 January 2012 10:31, by Acinitos

          Sue Khartoum for full amount not discounted amount, discount amount is theirs agreement between them with the buyer Should not concern you.

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  • 28 January 2012 07:00, by Peter Marko

    That is typical demeanor of thieves. When a thief steals something s/he sells it at the lowest price because it causes him or her to get it. So, it comes with no surprise that Khartoum will sell our oil that they have stolen with the cheaper prices. Shame on them.

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    • 28 January 2012 10:05, by Ruach

      Peter Marko,
      My friend you are right.They got it freely and sold it out at lower prices!Our people are under the proverty lines living in land full of resources and looted at day light period by fake Arabs in Sudan to boost their economies.A thief must be exposed to the world and should be known to everybody.When he/she comes to your,u must take care of your properties.No room for Islamic believe

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    • 28 January 2012 10:33, by Peter Marko

      Correction

      I mean, When a thief steals something s/he sells it at the lowest price because it cost him or her nothing to get to get it.

      repondre message

  • 28 January 2012 07:04, by George Bol

    The defense minister and the SPLA division commanders need to be alert for the SAF. This is a big war and we SPLA must protect our resources and the border before the Arab thieves try to take our oil by force. The Khartoum are jumping up and down for oil.SPLM must sue Khartoum and be keen to see who will steal our oil again. Thanks

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  • 28 January 2012 07:23, by Daniel Buolmawei

    That Asian oil trader must be sued and charged with billions of dollars. So next time, he/she will not buy stolen property of somebody else. Khartoumers are dying, so they’ll make the mistake Saddam Hussein made in 1991 when he invaded Kuwait in an attempt to steal their oil. Guessed what, did Saddam succeed? No, because there’s nowhere in this world you can be allowed to steal property of others.

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  • 28 January 2012 07:26, by Lang

    We should not sell to Singapore again

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  • 28 January 2012 07:43, by Matiop Panchol

    These cunning foxes can come up with anything to suffice their greedy hearts. If the oil was sold at discount the documents must be provided even if that doesn’t legalize the act. Khartoum keep saying S. Sudan has to pay arrears. How can S. Sudan be held responsible for not paying when agreement on the price was not reached? The first step is to agree on the price.

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    • 28 January 2012 07:53, by Daniel Buolmawei

      Matiop, nobody cares about setting the prices anymore. We already got what to do as a solution for this fiasco. And you may be absolutely right that they will create anything possible to drag South Sudan into war. We will not step on their side, but once they step over to our side, then we will hit back harshly as you are aware that. So let’s wait to see what they’ll do in this survival struggle.

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  • 28 January 2012 10:54, by Tambura

    Those people are wasting their times and keep fools in S Sudan busy, with who they sell the stolen oil to and how much they paid for it. It is well known when thife stole things they sell it forward,to keep crude oil in tankers or refinry can distroy it even the remain oil on pipline if they don’t clean it in three months it will freeze and destroy the pipe,they have to get rid of it-

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    • 28 January 2012 11:06, by Tambura

      Sue them, you have energy to run after wanted criminal who ICC couldn’t catch him for his crime. What will make you sure this time they will bring him to book for stealing and selling your oil forward? you are lack of judgment and leadership, you guys should resign and go home leave this country to new generation whom knows how to deal with all type of situations of 21 century. Go home

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  • 28 January 2012 18:00, by south boy

    yeah the sudanese people are thief as we all know but the weakness turn to us we the southernese because we use to appoint some people whom are non qualify, that is why what so call Beshir or beshara and his people thief ours, take them to court please.

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