Home | News    Saturday 21 January 2012

South Sudan will continue talks with Khartoum despite halting oil production

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By Ngor Arol Garang

January 20, 2012 (JUBA) - South Sudan said on Friday that it will continue to negotiate with Khartoum over post-independence issues despite announcing that it is stopping oil being exported through North Sudan over transit fees dispute.

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South Sudan council of ministers meeting today January 20, 2011 in Juba (GoSS website)

South Sudan’s cabinet on Friday passed a resolution that will see a total halt to oil production within two weeks. The ministry of petroleum and mining will immediately proceed with construction of a new alternative pipeline through Ethiopia to the Kenyan port of Lamu, according to South Sudan’s oil minister.

"We are planning that building an alternative pipeline will be a national duty for all South Sudanese," South Sudan’s oil minister, Stephen Dhieu Dau, told reporters in Juba.

Juba claims that Khartoum has stolen $350 million worth of its oil and prevented over $400 million of it from leaving Port Sudan, while Sudan says that the South Sudan owes it more than $1 billion in unpaid fees.

Sudan wants $36 a barrel as a transit fee, which is roughly a third of its value, and for Juba to share the north’s $38 billion national debt. Juba wants to pay a much smaller fee similar to the rate Chad pays to export it oil through West Africa.

Landlocked South Sudan officially became an independent state in July 2011 after a 2005 peace deal with Khartoum that ended decades of civil war in which 2 million people died.

However, since South Sudan seceded the two countries have been unable to agree over the poorly demarcated border, citizenship, national debt and the exportation of South Sudan’s oil using northern pipelines and refineries.

South Sudan’s minister of information, Barnaba Marial, told reporters at the council of ministers that they had resolved to pursue negotiations with Khartoum through the African Union High Implementation Panel (AUHIP) on the outstanding issues between the two countries.

So far the AUHIP mediated talks, led by former South African president Thabi Mbeki, have failed to resolve any of these issues. Minister Marial said the Khartoum government have spoiled the environment for discussion.

Marial said the council had directed the minister for petroleum and mining to communicate the decision to all oil companies involved in the production in order to initiate immediate construction of the alternative pipeline.

"This decision was necessitated by the continuous behaviour, which the Khartoum government has adopted recently toward South Sudan. They have been stealing and blocking our oil from going to the international markets. Our oil worth 350 million US dollars has been stolen", the minister said.

Marial said the cabinet made the decision to build the pipeline after the minister in the office of the president, Emmanuel LoWilla, and the minister of petroleum and mining, Stephen Dhieu Dau, tabled a report about recent visits to the neighbouring countries of Uganda, Kenya and Ethiopia.

The minister accused Khartoum of forcing oil companies to load the oil into its vessels without the permission of the government of South Sudan.

“How can we be discussing with Khartoum on the issues of oil especially the transit fees while they are now confiscating our oil by force?” minister Marial asked.

South Sudan’s oil minister told Reuters that the six month-old government could last for 18 months without oil, despite oil accounting for 98 percent of the budget.

The oil minister said that despite the issues with the project the government wanted to build the pipeline to avoid exporting out of north Sudan.

The new pipeline route runs through difficult and insecure areas of southern Ethiopia and northern Kenya and there is scepticism that the project is financially viable as oil production is expected to decrease by half over the next decade.

Meanwhile, the Sudanese government has downplayed South Sudan’s move, saying that the latter will be more affected by it.

Sudan’s official news agency SUNA reported that Khartoum’s foreign ministry responded to the announcement by releasing a statement saying that it has the right to confiscate South Sudan’s oil because Juba was not serious about negotiating a fee for using northern infrastructure.

Khartoum said there would be "a negative impact on both sides but the damage will be bigger for South Sudan than Sudan". Since Sudan lost South Sudan’s oil revenue, which made up 75% of oil revenues, its economy has suffered severely.

North Sudan has not said whether it will attempt to sell the oil it has diverted to its two refineries but Juba has said it will sue any company who buys its oil from Sudan rather than them.

Sudan’s president Omer Hassan al-Bashir has recently admitted that his country will be negatively affected if the South decides to halt oil production, but warned that Juba has more to lose from such step.

Over the last six months the two countries have accused each other of supporting rebels in each others territory. Both sides have denied the allegations. North Sudan has also been accused by the United Nations of bombing South Sudan, a charge denied by Sudan Armed Forces (SAF).

Sudan’s foreign minister Ali Karti said this week that an oil deal with South Sudan is unlikely to be reached without an agreement on border security and Juba’s cessation of alleged support to Sudanese rebels.

Some observers have suggested that South Sudan’s decision to halt oil production is aimed at putting pressure on Khartoum in order to elicit concessions on the negotiation table.

In New York, the United Nations Secretary General Ban Ki Moon issued a statement saying he is "is deeply concerned by continuing tensions along the border between Sudan and South Sudan as well as the current oil crisis".

"This situation indicates a worrying deterioration in the relationship between the two states," he said.

"The United Nations fully supports the efforts of the African Union High Level Implementation Panel (AUHIP) to resolve these and other outstanding issues between the parties based on the concepts of mutual viability, security and peaceful coexistence".

"The Secretary-General strongly urges the parties to do everything possible to reach agreement in their current negotiations in Addis Ababa under the auspices of the AUHIP, to defuse the current oil crisis, and address the other contentious issues on the agenda that require immediate resolution".

(ST)

Sudan Tribune: South Sudan shuts down its oil production countrywide

Bloomberg: South Sudan Plans to Shut Down Crude Output Over Oil Dispute With Sudan

Reuters: UPDATE 3-S.Sudan plans to halt oil output within 2 weeks

All Africa: South Sudan: Khartoum Scuttles the Addis Ababa Talks

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Kind regards,

The Sudan Tribune editorial team.
  • 21 January 2012 08:00, by George Bol

    Stopping oil from South Sudan to Sudan is a right idea. The country has thrived for years without oil revenue,so let stop the it and let prepared for the aggression from Khartoum.The South must sue Khartoum because they have stolen the resources of different nation.SPLM must response this time to any aggression from Arab Khartoum. SPLA oyee!

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    • 21 January 2012 08:41, by Darkangel

      ’The country has thrived for years without oil revenue...’, YOU OBVIOUSLY HAVENT LIVED IN SOUTH SUDAN TO SAY SUCH STUPID STATEMENTS. When did it thrive with or without oil??? It is the poorest country in the world - i dont call that thriving. Please dont reply with stupid answers like because of the North. Im asking when did the South thrive ? NEVER

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      • 21 January 2012 09:13, by SeekingTruth

        DARKANGEL, YES WE KNOW THAT SOUTH HAD OIL, BUT HOW WOULD U CALL IT WHEN THERE WERE NO ROADS, HOSPITALS, SCHOOLS, CLEAN WATER, ETC? ISN’T THAT THRIVING WITHOUT MR. KNOWING IT ALL?

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        • 22 January 2012 02:43, by Darkangel

          No MR. KNOWING IT ALL - No roads, hospitals, schools or clean water is known as failure to thrive - ie almost dead !

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      • 21 January 2012 10:31, by Daniel Buolmawei

        Who’s this idiot called Darkangel. You’re indeed evil as your name suggested.

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        • 22 January 2012 02:49, by Darkangel

          On the Sudan - South Sudan Oil Negotiations
          http://www.state.gov/r/pa/prs/ps/2012/01/182333.htm

          China: The decision is impossible to implement due to existence of agreements obligating all parties to continue production

          Experts: The CPA provides that should secession take place, no party shall take unilateral decision with regard to oil industry that may cause harm to pre-secession oil partners.

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          • 22 January 2012 02:51, by Darkangel

            Observers: Juba relies on oil by 98% and is now suffering from famine and conflicts

            China on line
            “Until now we have not received an official notification from the Government of South Sudan or any other party” Chinese Ambassador. The Ambassador, however, ruled out the implementation of such a decision given the presence of agreements that obligate all parties to continue production.

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      • 21 January 2012 14:11, by SSLA/M Supporter

        The decision to halt the oil production nationwide was very stupid, nasty and suicidal at the same time and it’s obvious that it was made under the influence of alcohol! Even if Khartoum will be affected as a result, the suffering of ordinary and underprivileged Southern Sudanese will be immense with catastrophic outcomes! Of course it will not affect those SPLA/M drunkards, the makers of such a

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        • 21 January 2012 14:18, by SSLA/M Supporter

          mad decision! because they will use their reserve of looted public money that they have been stealing since 2005 to date!while our poor south Sudanese are starving to death, the embezzled money that would have been used for improvement of the inhumane conditions our poor south Sudanese are living! Whoever condone this mad decision must be irrational just like those SPLA/M fools and drunkards!!

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          • 21 January 2012 15:13, by tiger

            SSLM/A supporter,
            To described you is incredible in the real human senses, if i insult you of being born foolish, yet it doesn’t reflect your real stupidity, what is good between leaving oil for the north or haulting it?
            Reason it out as mature person

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            • 21 January 2012 15:58, by SSLA/M Supporter

              tiger

              You are simply an ignorant moron full stop! First, note that my mind is bigger than your bullshits that SS oil was being looted by North Sudan! pls Keep your SPLA/M nonsenses to yourselves because I am not living in South Sudan or even in Africa to be fed with ur lots of bullshits!! I have my own eyes and abrain and thus I am seeing things through my own God given eyes and judge them

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              • 21 January 2012 16:04, by SSLA/M Supporter

                using my own common sense! Do that to locals that you can feed with lots of rubbish as much as possible without realising your deceptive attitudes! Everybody knows that Sudan was deducting its transit and maintenance fees that your doom regime of SPLA/M mafia didn’t pay for months, is that a thief in your naive brain or you want me to side with you even though you are messing up things stupidily?

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                • 21 January 2012 16:09, by SSLA/M Supporter

                  Who gives you the right to decide the fate of South Sudan? Was that ridicules decision debated in the parliament! And what is different between you looting the oil money and North looting it? Thief is equal thief, what make your thief better than that of north Sudan? Now reason rationally! why you want North Sudan to still do you charity when have already seceded!!

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    • 21 January 2012 09:08, by Akumadit

      We the People of Republic of South Sudan are ready for whatever will be the effect of shut down of Pipeline. We fought for 21 years without any economic foundation. The only person that will led us down is our President Salva Kiir Mayardit who always like to appease Khartoum regime. I would like to suggest that our country should work hard to topple the current government in Khartoum.

      Akuma

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    • 21 January 2012 09:16, by Akumadit

      What will be the economic side effect of shutdown of pipeline by Juba government? The government of South Sudan will try by mean necessary to find funds to run the government agencies; that will lead to high taxation on commodities coming from Uganda, Kenya and other countries. When those traders are heavily taxed, the price of the good and service will rise by 100 per cent.

      Akuma

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    • 21 January 2012 10:28, by Logic

      NCP will soon realize the serious shit they are in, if they haven’t already.

      Those pathetic fake Arab elite of the NCP will feel the wrath of the SRF, and all those traitors who defected to Khartoum, Damazin and Kadugli since the fight started will have no chance of returning, we know you!

      NCP rats days are coming to an end, internet warriors will continue their nonsense but it wont help NCP.

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    • 21 January 2012 11:51, by Aarai Baka

      Too late now but better than no action.there are already news about some people from the oil state already breaking into grain storage in Munuki area in Juba to looted to empty, what a shameful....ugly news (:.

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  • 21 January 2012 08:11, by SeekingTruth

    NEGOTIATIONS OF THE OTHER OUTSTANDING ISSUES SHOULD CONTINUE WITHOUT INVOLVING OIL AT ALL. THE DECISION MUST STAND AS IT IS. ALSO, WOULD BE A GOOD MOVE IF THE SOUTH HOLD THOSE FOREIGN COMPANIES THAT LET N. SUDAN DIVERTED OIL INTO THEIR REFINERIES ACCOUNTABLE OTHERWISE, LET’S WAIT AND SEE WHO WILL CRY MORE AS AL-BASHIR SEEM TO BE IN TORRENT TEARS ALREADY.

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  • 21 January 2012 08:18, by Chuangah

    The Ethiopian forces in Abyei must move out of Abyei as soon as possible, they are there for nothing as the saf was not pulling out of Abyei. We want to show saf our manhood, we will do it millitary either they like it or not they will move out of abyei, Ethiopian yu are our brothers we dont want to harm yu pliz move out of abyei , am tired of Arab staying in my soil.

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    • 21 January 2012 08:42, by Sir. Nostalgic

      Thanks Mr. Changh,
      My aim as I am holding a gun is to die in Abyei and Mading/ Heglig and that is all. These are Dinka and Nuer lands and there is no way SAF continues occupying them otherwise, we are going to show them our manhood like the time of war. Now this is a separate country called South Sudan and we must defeat SAF to death. Sorry indeed. SAF must leave Abyei. SPLA OYEEEEEEEEEEEEEEEEEEE

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      • 21 January 2012 23:03, by SSLA/M Supporter

        Sir. Nostalgic and chuangas!

        We Nilotic tribes must know how to play this game of Abyei or else it will play us! Abyei won’t be won militarily but only through mutual understanding on negotiating table between us and our northern brothers! What will we benefit from war with north Sudan? We Nilotic people must think twice when settling matters with our northerner neighbours! Because our two..

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        • 21 January 2012 23:08, by SSLA/M Supporter

          Nilotic regions are the one bordering North Sudan! So take it from there and you won’t fail to deduce the emphasis of being neighbour and how neighbours are supposed to behave toward each other! Bahr El Gazal and Upper Nile Regions are not to move anywhere, so they will always remain where they are now!! Thus, it’s

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          • 21 January 2012 23:18, by SSLA/M Supporter

            for our interest to improve our brotherly ties with our northerners! like Equatorians are improving their ties with their brothers in countries like Zaire, Kenya ,Uganda and CAR as that serves their interest! Separation of South Sudan will affect us more than Equatorians, Abyei and the fighting in S-N borders are very good examples! To develop our regions, we must improve our ties with Sudan!

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    • 21 January 2012 09:01, by Ahmado

      My brother just be patient we need strong leader to take seat you will see saf will leave Abyei only second and SPLA will collect all weapons,heavy trucks from saf. let them stay for moment but time will come.Because Salva Kiir, he is so friendly with Omer Basir but time Salva will leave than Khartoum will be in trouble.

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  • 21 January 2012 08:25, by Marolditapei

    WE ONLY NEED SUPPORT AS A NEW NATION FROM INTERNATIONAL COMMUNITY FOR MOBILIZATION OF ECONOMY WITHOUT OIL PRODUCTION BUT FROM OTHER SECTORS LIKE AGRICULTURE. IF RSS’MINISTERS NEED MONEY, THEIR FINANCIAL NEEDS SHOULD BE MADE BY RAIL OR ROADS LINKING TO INTERNATIONAL SHORES LIKE MOMBASA. BEFORE THE GOVERNMENT SETTLES IN DURATION OF YEARS, STRATEGIC PLANS ARE NEEDED TO BE PUT IN PLACE. OIL SHOULD BE-

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    • 21 January 2012 08:31, by Marolditapei

      LEFT ALONE FOR NOW WHILE MEANS ARE BEING EXPLORED FOR GLOBAL MARKET. OTHERWISE WE CAN THRIVE LIKE KENYA WHICH DOES NOT HAVE OIL AND YET VIABLE IN TERMS OF ECONOMIC STABILITY. ONLY MINISTERS NEED MONEY FOR NOW. SPLA/M DOESN’T EVEN NEED ANY MONEY. IT IS JUST THE WEAKNESS OF LEADERS THAT IS LETTING THE SOUTH DOWN. SALVA OYEEE! RIEK OYEEE! PAGAN OYEEE!RSS OYEEE! NO OIL, NO PROBLEM BUT PROSPERITY.---

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      • 21 January 2012 08:36, by Marolditapei

        ONLY MINISTERS NEED OIL FOR THEIR SALARIES FOR NOW. NEW CUSH PEOPLE CONSIDER IT A DISASTER FOR THEIR FUTURE AND NATION AS THE WORLD IS BECOMING A GLOBAL MARKETPLACE. SO THERE SHOULD BE NO NEED TO RUSH. KHARTOUM IS MAKING US SLAVES FOREVER. KHARTOUM CAN ALSO BLOW UP ANY PIPELINE PASSING THROUGH MUSLIM LANDS LIKE SOUTHERN ETHIOPIA. SO OUR LONG TERM DEALS SHOULD BE CORDINATED THROUGH BRAZAVILLE VIA—

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        • 21 January 2012 08:41, by Marolditapei

          DRC. A WORKSHOP IS NEEDED ON THE TOPIC VIA THE HELP OF OTHER COUNTRIES OR CONSUMERS. I DON’T KNOW WHY OUR LEADERS HAVE MADE A DECISION AND ARE NOW BECOMING BEGGARS. TEACH THE PEOPLE TO LIVE ON SUBSISTENCE ECONOMIC MEANS LIKE AGRICULTURE WHILE OIL IS RESERVED. IT WAS KNOWN SINCE WE WERE YOUNG THAT THERE IS NO GOOD NATURAL BORN LEADERS IN THE SOUTH RATHER THAN THOSE WHO WANT TO BENEFIT INSTEAD OF NB

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          • 21 January 2012 08:44, by Marolditapei

            [NATION BUILDING ((NB)]. SHAME BE ON ALL WHO LOOK FOR SALARIES AND WEALTH ACCUMULATION RATHER THAN SECURING THE FUTURE. SHAME, SHAME AND SHAME

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  • 21 January 2012 08:40, by Ahmado

    this is only alternative, south sudan should construct their new pipeline than use khartoum pipeline. And we shall see what will happen because khartoum always taking our resources without informing the south ,south sudan must build theirs to avoid conflicts between two countries.

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  • 21 January 2012 08:57, by mosa mel

    Khartoum govt did great mistake to Sudan as state. economic crime is not simple as humanity crime as they think. What they stolen from South Sudan will be easy to be taken from international world bank simply and Khartoum will face penalty as international thief. This will damage credit whenever Khartoum need loan from world bank.

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  • 21 January 2012 10:00, by Garang Geng

    my advice to the govt of south Sudan is that they should mind that Kenyan are the most thieves than those of Khartoum, taking pipelines via Kenya territory need concrete agreement

    any way the decision is good but mind that, actions speak louder than words

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    • 21 January 2012 16:31, by Padiet Deng Alony

      You are right brother Garang

      But better African thieves then fake arab thieves in north sudan.

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  • 21 January 2012 10:07, by Land-of-Cush

    Well done South Sudan government. This is what we been waiting for. Never go back to North Sudan for good.Nothing can make us worring? imagine we been living without income nor knowing about the benefit for old Sudan since the creation of that country. Three years pipline building is not matter, it can’t even be compare with 2 decades waring with Arab north.

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  • 21 January 2012 10:24, by JAMES KUOI STEPHEN

    Iam awtfull very pleased, for Southeren Sudan had waved North Sudan for good and totally come to an end, to block all oil pipline continueness operation and running oils investors. We apprecieted loyalist of South Sudan to committed and block it. You would have make an enemy rich!. No transits fee, better pay them to others Eastern Africa, Enough is Enough. Long live SPLA/ Long live SPLM.

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    • 21 January 2012 10:56, by Ajok Garang

      The South Sudan goverment should continue shutting down the oil productions as far now because the North is ever stealing alot of wealthy everyday ,in the last three days many barrels were stolen and that is a great bobery ,our goverenment need to claim for the stolen oil by the North Goverment.

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  • 21 January 2012 10:59, by jong jong dog

    South Sudan’s oil minister told Reuters that the six month-old government could last for 18 months without oil, despite oil accounting for 98 percent of the budget.it sound not logic Mr. minister. close the oil field briefly and continue negotiation to reach a reasonable agreement. constructing other pipe line within short time, passing up hill and through two countries where insecurity prevailing

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  • 21 January 2012 11:00, by jong jong dog

    South Sudan’s oil minister told Reuters that the six month-old government could last for 18 months without oil, despite oil accounting for 98 percent of the budget.it sound not logic Mr. minister. close the oil field briefly and continue negotiation to reach a reasonable agreement. constructing other pipe line within short time, passing up hill and through two countries where insecurity prevailing

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    • 21 January 2012 11:03, by jong jong dog

      it is risky and no company will risk that,the other two countries will claim their transit fees may even more than khartoum is claiming.

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    • 21 January 2012 11:04, by jong jong dog

      it is risky and no company will risk that,the other two countries will claim their transit fees may even more than khartoum is claiming.

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  • 21 January 2012 15:08, by James Maker Akok

    Please South Sudan Government, may you stop about Oil talk with North Sudan Government, North Sudan Government is going to broke South Sudan Government, you can not talk/friend with a person stealing, or taking your things by force. Is better for South Sudan Government to build Oil pipeline to Kenya. Please South Sudan Government! hear me what am I telling you. North going to do big bad things.

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  • 21 January 2012 18:15, by Kashta

    Well done Mr.President.First move; announce halting oil production for media and public consumption.Second move; keep sending oil through the north. a classical political eve rybody-wins situation. North Sudan is happily getting it’s share and keep silent about it . Kiir is happy getting the much-needed oil revenues to run his new born country. Southerners are much happier that their

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    • 21 January 2012 18:22, by Kashta

      beloved government is finally getting tough and showing off some muscles. The man is learning fast and getting smarter by the minute. Watch out for the guy with the cowboy hat !

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  • 21 January 2012 18:35, by equtoria helped

    GOOD JOB SOUTH SUDA NOW SEE HOW DINKA DOMINATED PICE OF SHIT WILL MAKE THIS ABOUT TRIBALISM THAT FOOL WHAT ABOUT PEOPLE LIKE JOSEPSH LAGU AND JAMES WANI IGGA AND SO MUCH COMMANDERS INCLUDING MY UNCLE DO YUO FAIL TO SEE OUR SACRAFICES WE MADE

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    • 21 January 2012 21:49, by Elijah B. Elkan

      Equtoria helped,

      Sir, this paragraph makes no senses. Is it a translation from another (the whole paragraph is wrong)language, please read it again and make correction(s) because many people around the world read this comments. Hope you don’t want people to think you a fool do you?.

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  • 21 January 2012 21:45, by pierre cardin

    This will lead to likely conflict- or the push they need to fix problems-

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    • 22 January 2012 03:56, by wang

      Don’t worry, Pierre Cardin there will be no war. We are just inviting our friends AU and other superpower countries to solve our disputes with our beloved neighbour North.

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  • 22 January 2012 04:07, by wang

    Well done South Sudan government and that was the best decisions you ever made since the birth of this new nation. From now on these thugs from Khartoum will learn through a tough actions and‘ll respects us a nation.

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  • 22 January 2012 06:32, by jong jong dog

    believe me neither sudan stops oil transport nor south sudan stops oil production because this decision is not in their hand.Oil is not sold like sweets in a shop. oil is sold in advance of may be one year ie you pay one year or six month advances( the two countries won’t be able refund this sum putting mind their drastic need for money).for me this just a game for better chance of negotiation.

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  • 6 May 2013 22:44, by dennishobson

    Q8Zi7kNOk7xv1EpBRVz1sqDGMfsMCmssanyong actyon madeira plastica plastic lumber There are some interesting points in time in this article but I don’t know if I see all of them center to heart. There is some validity but I will take hold opinion until

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