Home | News    Sunday 29 January 2012

South Sudan completes 90% closure of oil production

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By Ngor Arol Garang

January 28, 2012 (JUBA) - South Sudan on Saturday said it had shut down 90% of its oil production, a day after the latest talks to resolve a fee dispute with north Sudan failed in the Ethiopian capital Addis Ababa.

Sudan wants landlocked South Sudan to pay $1billion in unpaid fees for using its pipelines and refineries to export its crude. Juba says it has paid fees since July, when it became independent and the previous arrangement expired.

On Friday Unity State, South Sudan’s largest producer said it completely stopped pumping oil.

“The shutting down processes of the oil operations have been progressing on well. 90% of the processes have been completed”, Stephen Dhieu Dau, the country’s oil minister told Sudan Tribune on Saturday.

He said technicians have now started “cleaning and the flushing of the facilities."

Sudanese president, Omar al-Bashir, and his South Sudanese counterpart, Salva Kiir, have been holding talks which saw participation of the president Djibouti, Ethiopia, Kenya and Somalia. The leaders, however, have failed to strike a deal.

Dau said talks have failed because Sudanese government refused proposal by the African Union to return the oil, which Khartoum has confiscated for payments it says it is owed.

“Nothing is coming out of these talks in Addis Ababa. The Sudanese delegations at the talks are showing no signs of commitment. Nothing shows that they want to end this crisis. They have refused all the proposals and advice by the African Union to resolve this crisis these talks begun”, the minister said.

He said: “I am told president Omer Al Bashir has this afternoon accepted to release ships with oil detained in Port Sudan but I still do not know whether they will implement it”.

On Saturday Reuters reported that Sudan said it would release the tankers carrying South Sudanese oil in a bid to defuse the detention between the two countries.

The minister explained that the AU proposal demands Sudan to pay for damages caused to the oil companies as a result of their actions and sign a letter of principles spelling out clearly that Sudan will not in the future divert or confiscate any oil belonging to the Republic of South Sudan being transported through its territories.

Dau claimed that Khartoum had sold part of the oil which was detained in Port Sudan to a company from United Arab Emirates and another from Singapore. Juba has threatened to sue any company that buys its confiscated oil.

"So how do you enter in to another agreement with someone who is not looking for a solution?”, he asked.

The senior official said the government would continue its plan to build a new pipeline through East Africa to avoid its reliance on North Sudan.

“We are still negotiating details of the alternative pipelines with the Kenyan and the Ethiopian governments. We have already a memorandum of understanding with the Kenyan government and we are discussing with Ethiopian authorities”, he said.

However, he said South Sudan was willing to continue discussions with the north over the other remaining issues in the Comprehensive Peace Agreement including the issue of Abyei, border demarcation, trade, debt and assets.

Majak D’ Agoot, the country’s deputy minister of defense on Friday described the closure of the oil production as “economic liberation” from the north. South Sudan fought decades of civil war between the 2005 CPA.

The senior member of the country’s ruling Sudan People’s Liberation Movement (SPLM) added he would prefer that the oil remains underground for the next generation instead of producing it to be confiscated by Khartoum.

Both countries rely heavily on oil revenues. Khartoum has exports around 125,000 barrels a day, since South Sudan seceded six months ago taking with it around 375,000 barrels a day in June. This had decreased to 350,000 bpd by the time production was stopped over the last week.

Oil revenue provides around 98 percent of South Sudan’s income, as it struggles to develop after decades of conflict. But the oil stoppage will also affect the north, which has suffered economically since South Sudan’s independence.

(ST)

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  • 29 January 2012 06:32, by NUER ONE

    Very good,that is the only solution,soon they will cry like frogs.

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    • 30 January 2012 07:49, by John Bang

      Bravo South Sudan!
      We are a nation were we don’t seek any support from poor Arabs,let them face that challenge. Wtih us as brave nation nothing is difficult for us.Our oil,money and other resources from South will help us fight a harder fight with Arabs.

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    • 30 January 2012 07:56, by John Bang

      With us nothing is difficult,we will win Arabs and it’s a time prophesied years ago that Arabs will be distroy and the land will remain to its owner South.Let the government insert good effort to the army and recruit another army to fight a harder fight with Arabs.

      repondre message

  • 29 January 2012 07:00, by Dau-arok

    well done,S-Sudan let them cry.

    repondre message

  • 29 January 2012 07:01, by mohammed ali

    ((The Sudanese delegations at the talks are showing no signs of commitment. Nothing shows that they want to end this crisis. They have refused all the proposals and advice by the African Union to resolve this crisis these talks begun”, the minister said.)) Well we have seen the report from Addis Ababa on this web! This minister is simply lying to his pple! As usual!

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  • 29 January 2012 07:04, by Lang

    These terrorist said they want to release the ships but not really follow through and they think we will sign without confirmation? ahaha these people are really sick. they are so desperate for southern oil but they cannot ever take something serious, always have to lie even in negotiations. It’s too bad for northern people who are so poor now they will lose billions for this stupid gov.

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    • 29 January 2012 07:07, by Lang

      I will not be surprised if now that we don’t agree with them on oil they will be like children and say we cannot speak about other issues now(demarcation, abyei, security,...) because we don’t have an oil agreement. it’s the type of mentality they have..

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  • 29 January 2012 07:28, by George Bol

    We have to stop making other agreement with the North because we had too many agreements with them. The oil must remain underground till the South build it pipelines. The North has loaded three tanks and claiming they are returning oil which was stop by them. False! they have stolen billions and they try to hide the stealing process. We must sue them and we need not to have any agreement with them

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  • 29 January 2012 07:32, by wang

    Close-down that further 10% as well

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  • 29 January 2012 08:52, by Alfredo christiani

    Dear readers
    Well done is better than well said, let the rest of 10% be close down for good, I knew those corrupted elements in Juba and states, will have no room to get money in coffin to neighboring countries, everything has an end, always Bedbugs get dry and die when you spray a bed . This is a great challenges to ministers, MPs, generals in the army and the rest who are eating money of other

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    • 29 January 2012 09:55, by Abyei Soil

      Absolutely, I’m agreed with the deputy defense minister in that since the last 2 decades, the struggle period we were neglect from getting shares on oil revenue by Khartoum administration but we still survive. What about today? We can still make it even if it take another two decades to build Mombasa pipeline. Let the oil remain underground for the next generation if we can’t find some ways tomorr

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      • 29 January 2012 10:03, by Abyei Soil

        tomorrow or next.

        Abyei Son.

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  • 29 January 2012 10:24, by Tambura

    We should have oil for domestic use, we don’t have refinery for local use, how those thieves ll get oil for driving around juba? or they are going to buy oil from other countries? What is their plan from now on, how much money they have in bank right now will make us to survive to next 10 months as they said about new pipeline-

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    • 29 January 2012 10:39, by Tambura

      which I doubt. What is the plan for revenue to build new capital, roads, schools, health facilities, electricity which works by oil? S Sudanese people have all right to know the plan, we knew pipeline ll build to Kenya but, what company ll build it? they are the one should tell us how long it ll take not fools whom doesn’t know what is going in their houses. What u do today ll hunt you tomorrow...

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      • 30 January 2012 01:17, by Mou

        Quran 5:33, 5:38 permits cuting out hands of a theif, now Sudan government doesn’t have hands but it has stolen South Sudan oil, which part will South Sudan cut out?

        Mou

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  • 31 January 2012 00:25, by Riel Angou

    The closure of the pipelines is completely counter-productive. With the ongoing corruption within the government, how can you possibly expect your "officials" to provide for the people of South Sudan without the flow of oil? Of course this wasn’t taken into consideration by the government "officials", as their pockets are fed; it’s the citizens who are going to feel the horrible effects.

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  • 8 May 2013 19:14, by dennishobson

    JZ3GuEHQ011hVw8yyFglRHq5FccqNcssanyong actyon madeira plastica plastic lumber Youre so cool! I dont suppose Ive read anything like this before. So nice to find somebody with some original thoughts on this subject. realy thank you for starting this

    repondre message

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