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Khartoum signals optimism as oil talks with South Sudan starts

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February 12, 2012 (KHARTOUM) – Negotiations between the governments of Sudan and South Sudan over oil officially started on Sunday as Khartoum indicated a relaxation in Juba’s decision to halt production of the commodity.

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Sudan’s President Omer Hassan al-Bashir (C) walks out with former South African President Thabo Mbeki (L) and South Sudan’s President Salva Kiir Mayardit (2nd R) (Reuters)

The talks were originally scheduled to commence on Friday but were delayed for unknown reason.

Previous rounds of protracted negotiations failed to yield an agreement on a fair charge to transport South Sudan’s oil through Sudan’s infrastructure, triggering a crisis that saw Khartoum confiscating oil and Juba suspending production all together.

The stand off gave rise to heightened tension and frantic diplomatic efforts by regional and international stakeholders to avert renewed conflict as officials from both countries exchanged warnings of renewed war.

Sunday’s talks on oil commenced after Sudan’s delegation, led by the minister of the Presidency, Idris Mohamed Abdul Gadir, and South Sudan’s delegation, led by the secretary general of the ruling Sudan People Liberation Movement (SPLM) Pagan Amum, arrived in Addis Ababa.

Meanwhile, Sudan Tribune has learned that the two sides had exchanged proposals on how to export South Sudan’s oil via Sudan during the opening session of the talks on Sunday.

In a press release issued on the same day, the Sudanese team stated that South Sudan’s government had expressed readiness to resume exporting the country’s oil through Sudan “as soon as the two sides reach a commercial agreement in this regard”.

The release added that the Sudanese delegation had presented its proposals on border demarcation and fees to transport South Sudan’s oil through Sudanese territories.

Khartoum’s team said that its Southern counterpart also presented a proposal on oil transit fees, adding that the session was adjourned to give both sides an opportunity to study each others proposals.

The Sudanese Media Center (SMC), a website closely linked to Khartoum’s intelligence community, quoted a source “close to the talks” as saying that the Southern delegation came to this round of talks with a spirit of rationality that was absent in previous rounds.

“It seems that the Southern delegation after carefully discussing [Juba’s decision to halt oil production] with oil companies and the alternative routes has concluded that there is no option but to transport oil through Sudan,” the source added.

It is not clear what chances of success this round of talks has in view of the fact that the positions of the ex-war foes on transit fees remain far apart.

Khartoum says it wants to $32 per oil, a figure regarded by Juba as greatly inflated and outside of international norms.

South Sudan took with it three quarters of Sudan’s daily oil production of 500,000 barrels when it seceded in July under a 2005 peace deal that ended more than two decades of civil wars between the two sides.

(ST)

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  • 13 February 07:44, by backtoschool

    Oil oil no way for Khartuom again, you lose your chance befor.

    Reply to this message

    • 13 February 07:50, by omoni jr.

      just give them $1 per barrel

      Reply to this message

      • 13 February 08:40, by Land-of-Cush

        This article has states nothing, but just wants to keep people in touch with this website. Reporter must tell the exactly the figures proposed by both sides to make full understanding to readers but i can’t see this at all.

        Reply to this message

      • 13 February 16:01, by Acinitos

        What a excuse me!!

        Reply to this message

    • 13 February 08:28, by SeekingTruth

      LET’S JUST WAIT FOR THE NEXT NEWS ON THIS!

      Reply to this message

    • 13 February 15:55, by Acinitos

      Daydream forget about your optimism about the oil.the last test you can have is the one you have stolen.

      Reply to this message

  • 13 February 07:59, by George Bol

    320,000 barrels/day.
    North demand $32/barrel.
    320,000*32=10.24 millions/day
    Now, 10.24*365 days=$ 3.74 billions/year.

    Internationally, a barrel cost $2.
    So, 320,000*2= $ 640,000/day
    $ 0.64 *365/days=$233.60 millions/year.
    The South will be in deficits.
    Are Khartoum normal?

    Reply to this message

    • 13 February 12:09, by mohammed ali

      Bol, where do you get a barrel of oil for $ 2 ? I will by it from for $ 92, your profit will be $ 90 per barrel. 1 barre costs $ 100 dear! Are you normal?!

      Reply to this message

      • 14 February 01:19, by George Bol

        Mohammad,

        First, you need to know the transportation fees, the actual selling prices, barrels to be sold, and the international transit fees before conversing. Ok! if the South has the total barrels of 320,000 and the the North demand $32 per barrel while the South proposed $2.00 for a barrel.I know you nothing about random sample.You indeed abnormal.

        Reply to this message

      • 14 February 03:23, by George Bol

        Of the survey participants 80 percent predicted the price for a barrel of oil will rise to be somewhere between $50 and $100 per barrel by June 2010.The South can not give away their 40% for transportation cost. If we include external factors,then the South will have 50% left as their revenue.

        Reply to this message

  • 13 February 08:01, by Sundayw

    Sudan Tribune is again spreading the false information from Sudan Media Center. Why don’t this news organization become a mouthpiece for the NCP regime.
    First, the SPLM delegation must not be tricked into false sense of normalcy here because the NCP will do a switch-and-bate as soon as South restart oil production. Nothing has been resolved yet. Besides, Sudan has attached rebellions to pipeline.

    Reply to this message

    • 13 February 10:57, by Logic

      Abo Dirty Jalabia, Is a blind loyalist, nothing you say to him will change his mind, he thinks he’s a patriot by supporting everything the NCP does. The truth is this, the north’s infrastructure is the best option but not for $32 pb, the NCP know this, what they’re hoping for is half this amount but due to $1 offer by the south, this desire is also far fetched hence their frustration.

      Reply to this message

  • 13 February 08:01, by Jalaby

    I think the people with no vision/mission and plan started to run out of money, they starved themselves before hurting the north when they decided to shut down the production, they thought building another pipeline through Kenya, Dijibouti will happen overnight! It’s just a matter of time to resume their oil through north!

    Reply to this message

    • 13 February 08:21, by abraham

      Mr. Jalabi
      Don’t get excited yet the negotiation is far from over. S. Sudan will never pay $32 per B to the Arabs.

      Reply to this message

      • 13 February 08:47, by Jalaby

        abraham,
        Yes South won’t pay $32 per each barrel but you know how business man sells its goods, business man and trader asks for high price first and start to negotiate with the buyer and makes some discount till reaches the price that he really meant from the begining!

        Jalaby (Abo Jalabia)

        Reply to this message

    • 13 February 08:23, by morogot batal

      jalaby
      from where do you want us to get our vision and mission ? isit from you devel of hell ?some of your medea disclose that southern sudan got no means to transport their crued only the option is khartoum pipe line....lett me assure you that we beter store our oil down for our next generation

      Reply to this message

    • 13 February 08:52, by Gangura

      We need Southern to use the same oil pipeline re the than nosense of MOU with Kenya.

      Reply to this message

    • 13 February 09:15, by Ahmado

      Mr,Bajalaby i think you as arabs are not good indeeded am sorry to use that word because you are not fair on agreement on fees south has to pay to north.Every things fine south knows very well pipeline is for north. you suppose to agree on fair fees.in my view to other conflicts with Khartoum better let south sudan shutdown their oil.

      Reply to this message

    • 13 February 09:26, by Emporio

      Mr jalaby

      u getting pressure from Chinese to accept whatever south will offer this time, even if we resume the oil production through north pipeline is not going to stop the plan of constructing our pipeline is just a matter of time to get our pipeline done through Kanya and then u will be getting 5 cent per-barrel, i don’t know how u going to pay off Chinese because u don’t own pipeline yet,,,,

      Reply to this message

      • 13 February 12:17, by mohammed ali

        Emporio, is it through Kenya or Ethiopia? Two " MoU" were signed! I can assure that the decision to pump oil was already taken in SS. Besides you have only about 250,000bbd, big deal!Just wait after 6 months time & we will see what are you going to do when you will be asked to reduce the amount you are pumping through our pipe-line!

        Reply to this message

        • 13 February 14:56, by Emporio

          Mr-Ali
          Do u mean to increase the production because I dont know any business can ask a customer to reduce his own benefits you guys just trying to intimidate us but is not going to work any more u will see in the future we are going to dominate u economically

          Reply to this message

  • 13 February 08:16, by George Bol

    Jallaba,

    Only business professionals should recommend on the oil issue(transit fees)but not you. If the South pay $ 3.74 billions a year for 320,000 a barrel,then what benefits are we South Sudan gaining? base on this slight calculation, it seems that we are sharing our South oil and the North are getting about 85% from our oil. Can we afford it? Pagan Amum and our SPLM teams knows? thanks

    Reply to this message

    • 13 February 09:05, by Jalaby

      Mr. George Bol,
      Let me tell you first that your calculation is completely wrong!
      Second:South exports 355K barrel per day (BPD), after subtracting oil companies shares,the south net share is 200k BPD only.
      Third:If we assume the oil price for barrel now is $100, ($100-$32=$68)the south net income per month would be 200k*$68*30=$408 million,still good man!

      Reply to this message

      • 13 February 09:10, by mosa mel

        Jallaba

        The oil will not run to Sudan again from South. Don’t waste you time to calculate.

        Reply to this message

      • 14 February 03:32, by George Bol

        Jallaba,

        32% for transportation cost,68% left for South Sudan.
        Substrate other external factors. How about if oil companies agree to purchase our oil for $80 a barrel? now; 80-32=48%
        minus 8% of other factors such as political issues, inflation, and high supply of oil globally. The South will have 40% left.What do you think about this? the South will remain with 50% of their oil revenues.

        Reply to this message

  • 13 February 09:05, by mosa mel

    Guys, You still don’t study the NCP behaviors. They are the one change spirit of previous talk not S govt delegations. Border and Abeyi issues must complete before oil resume operation to Sudan and that it all. Now they start again missleading the world. They want to show the world South have no alternative rather let oil run to Sudan.

    Reply to this message

  • 13 February 09:24, by Jalaby

    Jonobean,
    Don’t feel surprise or upset if Sudan charges S Sudan $32 per barrel, see the conflict between Russia and Ukraine over the Russia gas pipeline that cross Ukraine land to Europe and Ukraine asks for 34%!
    http://en.rian.ru/business/20120203...

    Jalaby (Abo Jalabia)

    Reply to this message

  • 13 February 09:41, by Emporio

    some one tell president of south Sudan you no long vice President of Sudan, Omar he is your counterpart that mean you should be walking with him side by side not behind him,i don’t know who post this ridicules picture,,,,,

    Reply to this message

  • 13 February 13:48, by Emmanuel Ajang Solomon

    Why are u comparing those Ukrain and Ruassia? we have our own problems and they need to be settle only when 1 Government is out from the 2.

    Reply to this message

  • 14 February 03:10, by Daniel Buolmawei

    Well, Pagan Amum, no oil deal, absolutely, no oil deal. All you have to talk about at the moment are issue of Abyei, border demarcation, citizenships, and ways to bring back lands taken by Khartoum that are geographically not their lands. If they don’t agree, then we have our swords and we ready to take them back by any means.

    Reply to this message

  • 14 February 03:25, by Daniel Buolmawei

    “It seems that the Southern delegation after carefully discussing [Juba’s decision to halt oil production] with oil companies and the alternative routes has concluded that there is no option but to transport oil through Sudan,” the source added."

    See! They think if we sign the deal, it is because we have no option left, but to give up to transport our oil through Sudan. I won’t sign it. Never.

    Reply to this message

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