Home | News    Friday 19 August 2011

South Sudan pushing for $0.41 per barrel in oil transit fees

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August 17, 2011 (KHARTOUM) – The Republic of South Sudan will offer Khartoum less than half a dollar in transit fees for each barrel of oil produced that passes through the pipelines running through the territories of the North.

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South Sudan’s minister for peace Pagan Amum (AFP)

With the independence of South Sudan last month as part of the 2005 peace deal that ended more than two decades of civil war, the North has lost 75 percent of the country’s oil production of 500,000 barrels a day.

But landlocked South Sudan relies on the infrastructure that resides in the North to export its oil through the Red Sea port in Port Sudan.

The South Sudan minister for Peace Pagan Amum told the independent Al-Ahdath newspaper that he expects South Sudan to pay $0.41 to the North stressing that the benchmark will be international norms. He cited the case of Chad-Cameroon pipeline which is of a similar-length.

However, one observer told Sudan Tribune that the comparison is not realistic noting that the waxy nature of oil produced in South Sudan means that it requires special treatment. He said that a fair price would be somewhere between $5-$10.

Sudan has reportedly asked for $32 per barrel for the service, something which South Sudan immediately rejected.

Last month, Sudan’s parliament approved an alternative 2011 budget that lawmakers said included an annual income of $2.6 billion for transit fees — the same amount expected for the loss of South Sudan’s oil production.

The African Union is seeking to bridge differences regarding the oil transit fees among many other post-secession arrangements negotiated between Khartoum and Juba.

2012 BUDGET

Separately the Sudanese cabinet meeting today headed by president Omer Hassan al-Bashir approved guidelines for the 2012 budget that excluded oil revenue for the first time in years which in the past constituted 50% of revenue and 90% of exports, Sudan’s official news agency (SUNA) said.

The cabinet spokesperson Omer Mohamed Saleh was quoted by SUNA as saying that the new budget aims at compensating for oil loss through attracting foreign resources and bolstering local production as well as reigning spending.

The targeted GDP growth rate is 2.03% he said and an inflation rate of 17%.

Saleh further said the government aims to stabilise the pound and focus on non-petroleum exports and restructuring the government.

(ST)

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  • 19 August 2011 08:44, by Ngailo

    Amum is a liar, never believe him!
    If that is the case then the negotiations do not match the logics.

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    • 19 August 2011 15:05, by Luka Manyuon

      General Mayardit the oil its yours. for how long did arab took our oil? its since. we the youth of South Sudan our time will come let arab took our oil. for how long have you took in the bushes? what take you in bush be for? you remeber what took you in the bush befor.

      thanks
      Luka Manyuon Gai

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    • 19 August 2011 15:50, by Bush

      @Ngailo

      Why can you give a respect to Pagan as your leader, you brainless animal? Pagan is 100% better than you and most corrupt leaders in the South here and to most of Southerners he is really representing us to the world.

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      • 20 August 2011 00:04, by BATNA

        Bush

        take credit, this human being cannot difference between positive and negative judgement or time and money, we people of South Sudan would have support the idea simply because, just for economics purposes and for us to pay that much as indicated and not beyond the above. However, to border with an Arab ideology, is time consuming, otherwise we better have so many options.

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    • 19 August 2011 23:22, by BATNA

      Ngailo

      I should rather advice you to identify the problem or the opportunity someone like Amum have contributed toward the success of South South, if you are the real South Sudanese or otherwise, quite this site.

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  • 19 August 2011 08:49, by Lat Dak Nyaroah

    Reducing or increasing the transit fees shall never bring stability between South & North Sudan. The solution would be for ROSS to speed up with construction projects of pipe line to Malindi-Kenya and Railway to East Africa.

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    • 19 August 2011 08:59, by John Gum

      Dear All

      this is beyong your capacity,the know what they are doing.

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      • 19 August 2011 09:15, by MINDED.DUDE

        John Gun,
        Only natural disasters, like earthquakes, hurricans,and flood are beyond human capacity.
        Dont lower yourself down and said someone is capable to do something for your people.
        we are all born by women and men.no one drop from heaven.

        repondre message

    • 19 August 2011 09:03, by choldit

      You guys (Lat and Ny---) are correct, Pangan is an untruthworthy individual who always act recklessly, e.g. during independent day, he imbraced South Sudanese by imposing himself into the scheduled programe in bid to make history for himself, at least he made but a negative one. Therefore, whatever negotiation he is doing is deem failable. President Kirr and his friend Dr. Riek should reconsider their action in appointing him into that pose.

      offering 0.41c is a good idea but will Pagan Amum do it in away suite to convent the hyans/blood thirty in the North, is another.

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    • 19 August 2011 09:52, by jamuse

      Lat.

      U r right .The should encoarage contractors to speed up with the construction of that new pipeline.I hated Arab.Our People are very stupid. Imagine many agreement hold between Arabs and dishonored.
      This pagan and Kiir are locust of oil money.They are found leading in the list of rich Sudanese in World Bank.What DR lual Achuek Lual said last month become true.
      They are good in talking/fighting with Arabs and good in stealing money.
      Thanks.

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    • 19 August 2011 14:15, by Mapuor

      South Sudan should & must have alternative routes of export of its oil.Relying on Arabs absolutely will definitely harm our economy that is now politcized.South Sudan should demoblize the army,police,prisons,wildlife & fire brigade this month to allow for agricultural development or else our state will surely collapse before the end of the year.Loans, dear guys have alot of conditions attached to them,I personally dont encourage that.

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    • 19 August 2011 14:37, by Sombiri

      The goverment in Khartoum was using road and rail to transport the crude oil to Port Sudan .

      There are several options for RoSS to export it’s crude oil.

      Option A: Through the existing pipeline which means paying of exorbitant prices to the custodians of the existing pipeline .

      Option B : The government in Juba to come up with hybrid measures .

      Option C: Construct a pipeline within 18-24 months.

      It is high for you to decide.

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      • 20 August 2011 07:59, by pabaak

        The Republic of south Sudan should start looking for other alternative to import oil instead of wasting time and money in such Marathon negotiation that yield nothing, this is their tactics to delay us so that we don’t soon have our own oil facilities, if we started constructing pipeline two years ago we could have now almost have it in place. Did it mean we should have cash in hand in order to construct the pipeline? absolutely No. so please why not use plan B or C,. if south Sudan work hard with collaboration with Darfur rebels they can get rid of these disease in Khartoum and we will have freedom of using Portsudan.

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  • 19 August 2011 08:59, by modi Losombek

    To: RSS’s Government,

    Please we are tired of Northern Government regime since the birth of Sudan and even before colonial rule which always closed to north Sudan.

    Therefore, you the RSS’s government they [northerners] have sack a lot from us resources and this give them only $0.41 as you have already cited for the transportation and that is enough.

    Thanks,

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  • 19 August 2011 09:07, by Nguetbuny de Luelpiny

    Khartoum Regime must be remove this time

    This is a fair price if the Khartoum refuses International price; it is immediately to be shutdown all the Northern oil flows. South can shut it down for 2 years to build it south Refineries in Sudan.

    To remove Khartoum this will take 2-3 months war to kick Settlers out in Sudan and let everything flow back in African way.

    I am sick with any Arab Ideology, slave present trade in African Land. Giving them North part of Sudan will never do well to Africa Indigenous people up North. We still not achieve enough to secure the Land.

    Some weakest heart tribes in the south delay Arab stay in Sudan for so long and still practicing slave trade to these days in Sudan. If SPLA/M did not liberate Africa in Sudan at all cost the Next Generation movement will biggest Picture:

    African People Liberation Army/Movement or
    African Liberation Army/
    APLA/M or ALA/M

    Tone of liberators

    Nguetbuny

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    • 19 August 2011 09:34, by mohammed ali

      If you have you read the article, assuming that you understood what is written, you have to go ahead and shut the pipeline.

      The budget of the Republic of Sudan is without oil revenues, they have been dropped out.

      This is an invitation to you and your commarade Pagan to shut down the pipe-line and start drinking oil, at least Pagan could solve his drinking problem!

      repondre message

  • 19 August 2011 09:40, by Khartoum92

    I am tired of hearing about this oil transit fee thing, We will just shut down the oil pipe you can export your oil through Kenya which is even better like you all stated. The border between the North and the South should be shut down and no more trade. South Sudan is a fail state and we shouldn’t do business with it until its actually a country.

    repondre message

    • 19 August 2011 13:21, by Deng Gau

      Khartoum92

      (The border between North and South should be shut down,South is fail state and we shouldn’t do business untill its actually a country):

      AHAHAHAHAHAHAHAHAHAH,
      You see how foolish you are? Do you know that exporting goods to get a hard currency is better than importing, you are poor even a basic concept of econonmics. 90 percent of international market is South Sudan, so if the case to shut border its you to suffer where will you get the market for you fake products.
      I my self, i encourage the local product so that can at least be self suficient.It you who benefit in South -North trades not us if you have a basic knowledge in economics.

      repondre message

    • 19 August 2011 17:33, by Thon Anyaar

      Yes, that’s what we want, do it today, shut the pipeline down, close the border and we’ll all be the happiest people in this world.

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  • 19 August 2011 11:42, by Deng Gau

    $0.41 per barrel, Brvo commrede Pagan and government of ROSS.
    I believe you are a strong Negotiator. Patan Amumdit is the internationally accepted negotiator (IAN).
    Go a head commerede you are fully deligated by Government and people of the republic of South Sudan.
    We hope you will defeat the Kahrtoum looters of the NCP.
    If NCP reject an offer then, they will loose alot of dollars in their budget and you will hear riots in Khartoum very soon.

    repondre message

  • 19 August 2011 12:48, by philipdit wol

    Wow that is the good moves if this people of Arab will excepted it I guess Pagan is not joking with our neibour Al Bashir.

    repondre message

  • 19 August 2011 15:52, by Deng Gau

    To the well trust negotiator Pagan Amuom,
    Please commerade You should first of all Negotiate on all Sudan Infrastructures inluding pipelines.
    This pipeline NCP must put in mind that it’s ours together because it was constructed by our resources.
    So commerade we have our proportion in all North infrastructure pipelines, bridges, Dams, roads airports, sea port, media houses, republic palace, Sudan parliamant building and all ather infrastructures were built by our resources including Human resources.
    My suggestion is to negotiate on all these because we have shares in all Sudan Assets.
    Go ahead commerade You are internatioally accepted Negotiater (IAN) Pagan Amum.

    Thanks

    repondre message

  • 19 August 2011 20:06, by HARD CURRENCY

    empty drum make more noise,that is what most of you in this forum are.Just making an necessary noise without saying exactly what you want the government to do.If you are real human being and wanting some changes to be made in any way,you must point out the mistake you are seeing and suggest also your recommendation so that the person receiving the message will have to change to those recommendation.

    However,this is not the norm in your discussion.A person just enter and begin to make an abusive word with out corresponding his writing with the actual topic,shame on you,you called yourselves intellectual but you are lacking a real intellectuality in you.IT could have been far much better if you would have gone back home and allow your mothers to do the learning,because the would have been acting more sensible than you.

    Remember,dollar 0.41 can be paid even if you are passing your pipleline in heaven to your destination because it is international norm doing it.Whether Kenya,Ethiopia,Erteria or wherever you want to pass your facken oil,it has to have some charges to granted you access to world market.You are all thick in mind that you don’t even think beyond your little and shallow brain,you ought to possess a human brain not a chicken brain that you have.Whether Pagan or who ever is a better negotiator or not,you must bear in mind that all is not possible without using a root and a root is not possible without paying transit fee,even a passport having a visa for a particular country late say Dubai and the root is Ethiopia you always have to pay transit visa fee in Ethiopia before proceeding to Dubai.
    I advice that you have to change your style of contributing in this forum for your own good.Have a brotherly heart to advice your brother for the betterment of South Sudan not to throw your brother or sister into a hot fire.Your languages is all abusive and it doing more damage than good to all including yourselves.

    Thank
    your
    Hard Currency

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    • 19 August 2011 20:39, by Thon Anyaar

      Hard currency, your judgement would have been relevant if you didn’t show up on this site, but, since you show up now for the first time, you’re part of the noise!

      Just say something relevant to yourself not to everyone on this site.

      repondre message

  • 20 August 2011 07:50, by Konan

    President Kiir is planning to visit Khartoum very soon to discuss oil transit fees, and he is likely to agree with Khartoum on a fair fee. Pagan is trying to make things difficult for Kiir, Pagan knows more than any other person in the World that Khartoum will never accept this ($ 0.41 per barrel in oil transit fees)Ok now the ball is in Khartoum playground and you can do nothing except waiting and waiting , and we shall not keep you waiting for long your offer is completely rejected, so what will be your next move, offering $ 0.42 and keep on raising the fees until Khartoum agreed, let us assume that the negotiation took six months, ask yourself can you make it without oil money? Again let us assume that Khartoum closed this chapter forever, what options you have right now at hand? Pls. use your brain and not emotion at least this time and don’t let your ironic and irrational open hatred for Arabs destroy you. Remember business is business and there is nothing free in this Planet.

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  • 20 August 2011 11:53, by o.a.a

    This first time to view this site, I have read most of the comments here (from both, Southern and Northen (Sudanese)).
    Dears, you have to think that you still share word Sudanese, that meanse similiraty is more than diff., future for your both people is comming through cooperation, through win win , not lose win, > now a days there is an internationals tools to mange relations between people and governments. but you are (north and south) can build a good for both of you by your self , not by USA, China or Europe.
    you have to quit from the past and look forward.
    Oil is not the issue, peace will bring more prosperity to the people.
    Both (Mohammed & Jesus)peace be upon them, are calling for peaceful live, for respecting the other, but we who are distorted this advice, could we come back to our mind, and nature of loving life and other to live in happiness .

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  • 21 September 2011 10:36, by mz mw

    u ppl of south,,dont be trouble makers!!,,u need 2 live in safe u need 2 build ur new conuntry,,why u always make problems with us,,we gave u a hole country 4 u!!, so that also we can live in peace..u have 2 train ur selves how 2 run a country,how 2 be good nation..
    about oil..all basic structures are ready 4 u,,u havnt did any thing on it,,but u need 2 maintain ur (ready structures)..
    u should pay 4 it..or leave it..it wont pass through north any way,& u`ll gain economic proplems not us..
    otherwise..if u didnt stop ur racism talks againt north..i sware we r ready 2 take south back (different ways)...dont make problems..
    this is test 4 ur ability....
    talking about getting more parts of sudan..dream away,,be grateful 4 leaving the south 4 u with its oil...!!!
    say thankx...

    repondre message

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