Home | News    Tuesday 24 January 2012

Kiir explains decision to halt oil production as Sudan plays it down

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By Ngor Arol Garang

January 23, 2012 (JUBA) - South Sudan’s president, Salva Kiir has asked the country’s legislature to back his government’s decision to halt oil production in the wake of what he described as “looting” by neighbouring Sudan of oil revenues worth $815 million.

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South Sudan’s President Salva Kiir Mayardit during his Monday’s speech before the parliament on the current oil dispute with neighboring Sudan (ST)

Landlocked South Sudan decided last week to shut down oil production countrywide after its officials said that ex-civil war foe Sudan is stealing South Sudan’s crude oil flowing through its pipeline infrastructure to export terminals in Port Sudan. Southern officials also accused Sudan of blocking vessels laden with oil from sailing out of Port Sudan.

Khartoum defended its decision to confiscate southern oil, saying Juba has failed to pay any fees for using Sudan’s facilities since South Sudan seceded in July last year, as per the 2005 peace deal that ended more than two decades of civil wars between the two sides.

Addressing members of the Juba based National Legislative Assembly, President Kiir explained that his government took the decision to halt oil production after exhausting all possibilities of a peaceful settlement, and after there was no guarantee that oil flowing through Sudan would “reach its intended destination”.

He went on to recount that Khartoum informed them on December 6 that all oil shipments belonging to South Sudan would only be allowed to leave Port Sudan after paying the “exorbitant” amount of $32.2 per barrel.

South Sudan strongly objects to Khartoum’s demands of $32.2 per barrel, saying it is “a broad daylight robbery,” according to one official, and insisting it will only pay fees in accordance with international standards.

Kiir revealed that last week he sent envoys to Kenya, Uganda and Ethiopia whose presidents reached out to Sudan’s president, Omar Hassan al-Bashir and asked him to stop taking “unilateral decisions” about South Sudan’s oil.

“The response from Bashir is that he will not stop taking oil until we pay the exorbitant amount of $32.2 per barrel, something that is completely out of international norms and a precedence that we are unwilling to set,” Kiir declared.

According to Kiir, the total amount of oil revenues “looted” by Khartoum since December through blocking oil shipments and diversions amounts to approximately $815 million.

“We cannot allow assets which clearly belong to the Republic of South Sudan to be subject to further diversion,” he told parliamentarians in explaining his cabinet’s decision to halt production with immediate effect.

However, Kiir acknowledged that his country needs to find “other sources of funding” in order to cope with the disruption of oil revenues on which South Sudan’s growing economy heavily relies.

The president revealed that he had already instructed the ministry of finance to devise “contingency plans” to accelerate the collection of non-oil revenues.

He further emitted assurances that the government can survive “for the immediate future” on the existing cash reserves.

“I want to assure the people of South Sudan that all measures will be taken to ensure that any disruption is minimal” he said.

Kiir also warned that the disruption of oil revenues “could last many months” in light of what he termed as the Sudanese government’s failure to negotiate “in good faith”.

He however did not shut the door on continued negotiations with Sudan, saying his government would do everything possible to resolve the impasses and restore the flow of oil.

“I call upon this august house to support the decision of the Council of Ministers to stop the flow of oil and search for alternative sources of funding to manage government projects,” Kiir told the MPs.

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A demonstration in Juba in support of South Sudan government (ST/FILE)

Concurrently, demonstrations backing South Sudan’s decision to halt oil production erupted in the capital Juba on Monday.

Meanwhile in Khartoum, the Sudanese government has downplayed the impact of South Sudan’s decision to suspend oil production, and suggested that the demonstrations in Juba were contrived.

The media secretary of Sudan’s ruling National Congress Party (NCP), Ibrahim Gandor, said that the biggest loser from the disruption of oil production is South Sudan itself, not Khartoum.

He further said that Juba demonstrations were “concocted” by the government of South Sudan to send a message saying that the South Sudanese public supports the decision.

Gandor said that the government in Juba believes that the decision is a way of exerting economic pressure on Khartoum coupled with Juba’s support for armed groups in order to change the government in Sudan.

“This is a big delusion,” he added.

However, the state minister for media in Sudan, Sana Ahmad, struck a conciliatory tone, saying her country is still keen to reach a negotiated settlement under the mediation of the African Union High Implementation Panel (AUHIP).

She added that Sudan had taken all precautions to avert the negative impact of South Sudan’s decision to stop oil production.

(ST)

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  • 24 January 2012 07:15, by LL Reuben

    Mr. Kiir:

    Congratulation! This is a courageous decision your government has taken. We (the people of South Sudan) will bear with you in tough times following. In the end the South Sudan as whole will emerge stronger and much healthier. This decision could help unite our country’s people. Bravo!

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    • 24 January 2012 07:34, by Dinka Dominated SPLA/M

      People like me are always aware of what is happening in the country befor it happen but some of my reader just depend on news
      But this time, i hope no one person form south will disagreed with what kiir has done.
      God bless South Sudan Gov,

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    • 24 January 2012 07:38, by Darkangel

      A message to SeekingTruth :

      THOSE OF MOHAMMED ALI, SAM ETO, MASTER ETC HAVE COME TO THEIR SENSES RECENTLY

      What happened was they were blocked by ST from writting because of all the negative criticizm towards GOSS. ST doesnt tolerate this, it rather have people insult and talk rubbish about GOS.

      Everyone must be pro-S. Sudan US lobby - just like Hilda Johnson who acts like spokeperson for GOSS

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      • 24 January 2012 07:40, by Darkangel

        Jalaby watch out - soon ST will soon block your account.

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      • 24 January 2012 08:45, by SeekingTruth

        DARKANGEL,
        WHAT A LIAR! THAT WAS A FRIENDLY ADVICE BY THE WAY. U CAN TAKE IT SERIOUS OR NOT SINCE U PEOPLE IN THE NORTH SEEM TO WORK WELL UNDER PRESSURE. I BET U WILL EXCEPT THIS SOONER THAN LATER WHEN THE PRESSURE BUILDS ON.
        HOWEVER, U SHOULD STOP SPREADING LIES AS WELL BECOS THIS ARTICLE CONTRADICT YOUR EARLIER COMMENT CLAIMING THAT SOUTH HAS REVERSED ITS DECISION SHUTINGDOWN THE OIL PRODUCTIO

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      • 24 January 2012 09:09, by Logic

        That’s bulls***t and they know it.

        ST didn’t block any of the above, because Abu Dirty Jalabia, SSLM/A Supporter and many others who always insult GoSS are still here. Darkanger is just an alias for one of the bigots anyway. Your propaganda never fails to amaze.

        The oil will start to flow soon, as both sides depend on it, its a tactical political move needed to wake up the NCP gangsters.

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    • 24 January 2012 08:12, by Big Boy

      Dear Kiir
      Not Congratulation, this decision was made during weekend! where they were gathering at Kiir house with Credit of Beers in front of the table! they were just sepping their wine and decision comeout as they discussion,and thank you all for a great sensitive measure to the people of ROSS.

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    • 24 January 2012 08:15, by Acinitos

      Long live president Listen to your inner voice let no foreigh to detend you,of thirs interest,our interest depend on your judgement mr President,who so ever will not listen to you should go to hell take us to better life which they did not see it.Any foreigh are talking on theirs intrest so our interest depend on you only,pay not attention to any idiot president go ahead we are behind you

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    • 24 January 2012 09:35, by john agoet

      Your Excellency; you are 100% correct to these particular situate on stoping oil production. Now preliminary find out new resources to surplus our economy while we are building our own pipeline and refineries because nothing good comes from these people “the regime in Khartoum” also we need to investigate for how long they steeled our oil? And where they store it?

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      • 24 January 2012 09:46, by john agoet

        We need to involve international panels to give us a hand using high tech of their satellites to track down the stolen goods stores I think it will not be too hard to know that.

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      • 24 January 2012 13:43, by ABDALLA BIN ABDALLA

        Mr. John

        If mr. Kiir is 100% correct, where will he get money to fund projects and government workers’ payment? Will your uncle and his hencemen bring back the stolen billions of dollars to fund GOSS. Here you are totally wrong. He is supporting other leaders decision bindly. Tell him to open his eyes widely. He is also a thief. He embezzle public funds through other.... He is not a good leader.

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        • 24 January 2012 14:18, by John Bang

          Abdalla,
          You are an Arab by nationality, but make sure we are the riches people not like you those whose land is none productive.Now you will beg us for food because you do not have land for cultivation,damn Arabs! you become rich for the benefits of our own resources, stealling oils you have no where to lie down in Africa, ICC is at the front door of stupid Bashier.
          Congrats RSS!!! Long live RS

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        • 25 January 2012 10:38, by john agoet

          Mr Abdalla; stay out of this; take care of your own fraudulent government. we southerners know when we going stetled our issues including stolen money by individual in government ,,OK

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    • 24 January 2012 09:50, by Land-of-Cush

      Thank Kiir!!

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    • 24 January 2012 10:10, by Oduko

      This will cause wars and more crime in South sudan. Can you imagine this government of kiir with no $$!? this is clearly disaster to Junub people, as we all a ware that they will turn on looting poor citizens.

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      • 24 January 2012 12:28, by Mi diit

        Thanks President Kiir for the very clear message to Khartoum. They think we are not economically independent. What is needed is economic cooperation and not dependence on Khartoum as they mistakenly thought they have the right to loot our oil. We should clearly tell them that we are not only independent politically but also economically.

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      • 24 January 2012 13:51, by ABDALLA BIN ABDALLA

        I completely agree with you dear.
        people will die
        people will starve to death
        crime rate will rise
        government will be bankrupt
        ordinary citizen will loose hope on SPLM
        That will be a downfall of South Sudan.
        Mark me, What Mr. Kiir is doing will be a disaster to Southerners.

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        • 24 January 2012 14:30, by Big Boy

          Well Mr. Abdallah, you might be rit but on what didyou base ur comments? Basir is not any bettter than Kir.

          My question to Kir is:" What arethe options that you have in hand to run your country, is there any other source of income? Youmentioned that your minister of finance houldtake the necesay action, including what?

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    • 24 January 2012 12:59, by kimo

      this decision is like that of a husband who wanted to punish his wife by castrating himself(removing his testes)

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    • 24 January 2012 13:27, by ABDALLA BIN ABDALLA

      Wow

      Surprise!!!! surprise!!!!! surprise!!!!!
      The lord mayor of juba has emerge from his hiding to air out his view about the oil scandalling that is going on. Mr. beny has been so silent for long.

      what he is saying is not his decision as a leader of the people. He is a man of yes to his follwers. Mr Beny, are you going to bring back the stolen billions of dollars to fund the GOSS services.

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    • 24 January 2012 14:04, by John Bang

      Mr. Kiir,
      Bravo for the nice decision you made about our nation.This time the world is watching South Sudan and many countries will back /support us,don’t waste your time sitting while the counrty’s wealth are misused by the enemy Arabs.
      Since last year can be dicovered, not this year.The whole nation of South Sudan will join hands to fight Arabs.
      Bravo!!! RSS

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  • 24 January 2012 07:22, by Dinka Dominated SPLA/M

    People like me are always aware of what is happening in the country befor it happen but some of my reader just depend on news
    But this time, i hope no one person form south will disagreed with what kiir has done.
    God bless South Sudan Gov,

    repondre message

  • 24 January 2012 07:28, by Lorolokin

    Mr President ,

    We were been waiting for this bold decision from you although it is late , better late than never as such I strongly support you and siding with you. We were been there even before two wars against the rulling regimes in Khartoum without oil yet we survive , what the heck is the Nation Crime Party (NCP) playing.

    Kinkak.

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  • 24 January 2012 07:30, by Mzalendo Mwema

    Congratulation H.E Kiir,

    It is wise decision because if we can not cut now we must cut it tomorrow as long as the pipelines are passing through the North.My advice to you is to look after those in uniforms.It is better to leave our oil underground than to give it to Khartoum.

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  • 24 January 2012 07:48, by Tamongali

    very good president Kiir. The decision will really make us to see other natural resources as valuable as oil.believe we are going to be one of the richest nation if we really utilize these n. resources without corruption.

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  • 24 January 2012 08:09, by molana

    thank you president Kiir for your wise decision, there are those who don’t know the importance of oil yet they are still surviving, all southern Sudanese are behind you

    Bravo ;KIIR;
    Abukdom

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  • 24 January 2012 08:40, by George Bol

    The Republic of South Sudan has made great decision. I am supporting the shutting down of oil pipeline until further notice. I am encouraging the South Sudan government to lend some money from international Monetary fund for the period of 8 years so that the South will have some room to build the pipeline and latter repay the loan.We can’t afford losing our resources wastefully.

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  • 24 January 2012 09:22, by Deng

    To all South Sudanese...according to Sharia law ( Islamic Sharia law) anyone caught red handed stealing is entitle to have his/her right hand copped off in first offense... and left hand in subsequent offense..... what should South Sudan G.v.t do now to North Sudan G.v.t since they stole South Sudan oil worth 815 million dollars?

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  • 24 January 2012 09:35, by Martin Kat

    Dear South Sudanese citizens,
    The oil already has been shut down you don’t remind about it again. First of all let us defense our govt decision by sacrify our blood or contribute whatsoever we have on hand even you have one SSP you can pay it as a support to our govt if there is any aggresion outside. now Sudan govt on preparation to occupied oil areas wtithin teritory of S. Sudan as invation.

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  • 24 January 2012 09:52, by Daniel Buolmawei

    Darkangel, Jalaby, etc., you bunch of losers do not understand yet that NCPers are puting your whole future in grave and pit. I know you are young people, but you behave like insects who can flow into fire without realizing that they will burn. I could you so stupid and blind to see that the impact of cutting off oil from the south and the use of alternative pipelines to other countries will -----

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  • 24 January 2012 09:59, by Daniel Buolmawei

    greatly affect your future economy. Even though you won’t currently feel it, it will affect you in the long run, because you will lose for ever extra revenues you could get from the south by using your pipelines. I knew the stupidity of your leaders will put the welbeing of northern sudanese in danger. Now, northern sudanese are losing their money because of poor judgment of your leaders. Stupid.

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  • 24 January 2012 10:45, by ONEK-JAH

    Good work President, that is the clear indication that South Sudan is gearing toward economics independent we rather keep the oil under ground than to allow khartoum stealing it for buying chemical weapons

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  • 24 January 2012 10:52, by Deng Chol Malual

    NCP the North Sudan ruling party have violated their stand as sharia-law abided nation where theft is punish by choping off the hand that stealed the matter. Now Bashir have use his right hand to steal South Sudan oil; can the sharia loyalists cut off that hand or have they also turn pagans.

    Thanks,

    Deng

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  • 24 January 2012 14:28, by Konan

    Brothers, I can see u r too overjoyed with President Kiir’s decision. This issue is beyond Kiir and Bashir. It’s about USA and China. I think USA is blackmailing China to soften its stance on Iran and Syria. Sooner or later oil production and pumping through pipelines to Port Sudan will be resumed. Whether we like it or not, we are neighbors and neither we nor u can escape it. Both countries will

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  • 24 January 2012 17:56, by Northern Sudanese

    to all south sudan. i am not crying over your decision, i am not jealous, i am not angry , my country is not dry , my country doesn’t steal, i don’t want your oil , i only comment to defend sudan and i have 2 words for the south and GOSS FUCK YOU!and 2 all the other fools who say the south servived without oil, the south never ever servived without oil because it never EXISTED!!!!!!!

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    • 24 January 2012 20:50, by Stephen kuach

      NORTHERN SUDAN.
      Go FUCK your own mother son of nasty ass bitch instead of cursing out the government of south sudan for the decision,it’s our resources so we have to shut it down whenever we want feel like it.you can’t regret that either.yes south sudan had managed to survived before the oil was discovered and our might army SPLA fought the war with your terrorist without being paid.

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  • 24 January 2012 21:49, by Tambura

    When the pipeline have been shut down, the crude oil which remain on pipe will freeze and if it will take more than 6 months the pipe will be close totally need a lot of billions to clean the freezing oil from the pipe.The pipe will not be grantee. We ll not go back to the pipe if the negotiation took six months from now.

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  • 7 May 2013 16:35, by dennishobson

    qmwoL6082r7iqqRg1mHC2ZYhMxmrGrssanyong actyon madeira plastica plastic lumber An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So

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