Home | News    Saturday 10 September 2011

South Sudan to pay Khartoum oil fees in arrears, mulls mobile refineries


September 8, 2011 (KHARTOUM) – South Sudan will pay in arrears for use of North Sudan’s oil facilities until the African Union (AU) manages to broker a deal over the issue between the ex-war foes, a southern official said on Friday.

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In this Wednesday Nov. 17 2010 photo, Southern Sudanese security forces wait outside the control room of the Petrodar oil facility in Paloich, southern Sudan (AP)

North and South Sudan were evenly splitting proceeds of the 500,000 oil barrels the previously one country used to produce in line with a 2005’s peace deal between the two sides. South Sudan seceded in July taking with it nearly 75 percent of the country’s oil production.

However, disagreements lingered between the north and the South over the amount Juba will pay for the use of Khartoum’s pipeline infrastructure and refineries which the grossly under-developed South lacks.

Khartoum originally demanded $32 per barrel, a fee Juba termed as a “broad daylight robbery.” However, Khartoum later dropped the demand as talks over the issue under AU mediation in Ethiopia’s capital Addis Ababa proceeded with no reported success so far.

David Loro Gubek, undersecretary at South Sudan’s ministry of petroleum and mining, told Reuters on Friday that until the AU decides on the amount the South should pay, Juba will pay Khartoum in arrears, indicating the South’s willingness to accept any amount the AU decides.

"If the African Union decides that we have to pay this amount, I think we will pay it," he said. "Until then, the transport fees can be summed up and paid in arrears, according to the decision of the African Union. We have agreed they will handle it."

Gubek said that the fourth and final payment for oil liftings made in July arrived last week, but declined to say how much it was worth.

The U.S. Special Envoy to Sudan, Princeton Lyman, on Friday urged north and South Sudan to resume talks on oil within a week.


The southern official revealed that his country was considering construction of mobile refineries in order to tackle fuel and diesel shortages.

South Sudan president Salva Kiir on Friday blamed increased prices of fuel and other commodities on a blockade allegedly imposed by Khartoum on trade routes to the south.

Gubek said that South Sudan is engaged in talks with several companies to setup mobile refineries in order to produce enough gasoline and diesel to overcome the shortages.

"At the moment there are three companies that would take 3-5 months to set up. They said they could produce 10,000 barrels per day," he said said.

The southern official revealed oil exploration activities in South east of the newly independent country, renewing suggestions that Juba was considering to build a pipeline to Lamu on the coast of Kenya to transport its oil.

"There are certain blocks now where exploration is taking place. If oil is discovered there, unfortunately it will be too far to take the crude north," he said. "Eastern Equatoria (in the south east), if they find oil there, should we take it across to Sudan?"


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  • 10 September 2011 10:04, by Master

    10CAIRO169, Sudan: Launch of the Nuba Mountains People’s Forum

    C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 000169


    E.O. 12958: DECL: 2020/02/08
    SUBJECT: Sudan: Launch of the Nuba Mountains People’s Forum

    CLASSIFIED BY: Donald A. Blome, Minister Counselor, DoS, ECPO;
    REASON: 1.4(B), (D)

    ¶1. (C) Key Points:

    Forum Supports Arman, Will Boycott Parliamentary Elections


    ¶6. (C) Shemaila stated that the Forum supports the presidential candidacy of SPLM Parliamentary Head Yasir Arman as "the last chance for unity." However, he said the Nuba Forum will boycott the parliamentary elections because a complete census did not take place among the Nuba people and the resulting distribution of parliamentary seats would not reflect the influence of the Nuba population of South Kordofan. According to Cairo office Information Spokesman Mohamed Gom’a Suliman (protect), the Nuba will only receive 2 of 10 parliamentary seats allotted to South Kordofan, but comprise approximately 60-70 percent of the population. He added that under the current parliamentary setup, the Nuba will have little say in the public consultations that could lead to self-determination.


    Desire for a United Sudan, Preparing for Conflict


    ¶7. (C) Despite fighting on the side of the SPLM in the last civil war, Shemaila told us that the Nuba people have historical ties to northern Sudan. He stated that because of this, the Forum supports a united Sudan with a decentralized, confederal system of governance that would grant the Nuba autonomy over the Nuba Mountains region. However, he told us that if the South secedes, the Nuba Forum will advocate for its right to self-determination, in which the Nuba people should decide whether to be independent, part of the North, or part of South Sudan. He stated that the denial of Nuba self-determination would create "another Darfur." Shemaila said the Nuba have "25,000-soldier army" at Al Abayad dedicated to protecting Nuba rights.

    S/E Gration Should Visit Nuba Mountains

    ¶8. (C) Shemaila contended that the Nuba Mountain region has been ignored by the USG. He encouraged S/E Gration to come to the region and meet with Nuba leaders. Shemaila said the Forum values and needs U.S. support in order to help it protect the Nuba’s human rights.


    repondre message

    • 10 September 2011 13:43, by Waucity

      Why you keep asking them? Can’t you see it is everybody dream to have the pipeline build in their homeland and benefit from oil..Khartoum, has just rudely raid splm elected governor in blue Nile State, yet you want to continue and give them benefit of oil.

      repondre message

      • 10 September 2011 17:35, by Jay

        Stop blaming Khartoum for fuel increase and blockade as long as you still want to depend on them. We will be expecting all that all the time!

        If we really want to avoid fuel increase and any trade blockades, lets start building our own fuel depots and refineries in the south.

        The customers will come to us and not us going to them.
        We can not just be bragging that we are an independent country when we can’t even support ourselves!

        It’s understandable for now to depend on them for the time being while working hard to to do everything we can to avoid depending on them in the future.

        If we can not do what an autonomous country does for itself, how can we claimed to be one?

        repondre message

  • 10 September 2011 16:29, by Tambura

    We fought arabs for last 50 years I think we must know them better than everybody else in this area.The past thought us their not people to trust.As long there is money from oil we should construct our oil pipeline which will curry oil so we can get income to build the new capital. I don’t know how Mr. Kiir think?.....

    repondre message

    • 11 September 2011 02:29, by jonglei

      Our portion was been terminated by the khartoum ravage against our brothers from south kordofan, Blue Nile, we extremely shun our oil not be share any more , let us readily constructing and built our own pipeline without delay, there is no need for Ross to go and beg the same enemy which the has known for so long , against,or otherwise the ross will panitence later on,!sorry? my brain is very Omniscient.

      repondre message

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