Home | News    Saturday 28 July 2012

Sudan lowers oil transportation fees demand

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July 27, 2012 (KHARTOUM) — Khartoum negotiators in Addis Ababa announced Friday that Sudan lowered its demand on oil transportation fees to US$32, stressing that no deal can be signed without the implementation of security agreement.

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Sudanese repair crew work at the Heglig oil facility, after Sudan started pumping oil again from the war-damaged oil field on May 2, 2012, (Getty)

Sudan initially demanded US$36 per barrel for both GNPOC and Petrodar pipelines saying it owns all the facilities and provides all the services.

Last Sunday chief negotiator, Pagan Amum, tabled South Sudan’s "last offer" saying Juba proposes US$9.10 and US$7.26 per barrel for its oil transported through the two Sudanese pipelines. He pointed out that they offer "a 7% increased processing fees".

"We made a new offer to transport South Sudan’s oil at $21 instead of $25 and we ask $6 for transit fees, we also cancelled the marine terminal charges and reduced the processing fees. So we reduced our demand from $36 to $32", Awad Abdel-Fatah, undersecretary of Sudan’s oil ministry, told reporters in Addis Ababa on Friday

For the oil produced by GNPOC, South Sudan offers $7.40 for the transportation, including the marine terminal fees, $1.07 for the processing facilities and $0.63 for the transit fee. Regarding the Petrodar oil Juba proposes $5.50 for the transportation and the marine terminal, $1.07 for the processing and $0.69 for the transit.

The Sudanese oil minister Awad al-Jaz last March already made the offer of $32 per barrel describing it as "fair". It came two months after South Sudan’s decision to shutdown its oil production after accusing Khartoum of confiscating over $800 million of its crude.

Abdel-Fatah pointed out that the Sudanese offer takes in consideration the new offer that Juba made which includes the $3.245 billion South Sudan pledged to cover a third of Sudan’s financial gap, if Khartoum accept its latest offer.

The Sudanese official further said they propose that Juba pays the fees in crude instead of cash, but he added that Juba refuses such arrangement.

Sudan which is still subsidises fuel prices wants to benefit from its oil refineries in Port Sudan and Khartoum to cover the needs of local markets.

The UN Security Council held closed door consultations last Wednesday on the progress of the talks and the looming deadline of 2 August fixed in resolution 2046.

Different sources say the Council members consider to extend the deadline if tangible progress is achieved by the two parties particularly in security matters.

Abdel-Fatah told reporters that the current Sudanese propositions might change according to the South Sudanese position.

He however warned that no deal can be enforced without an agreement over border security arrangements.

Sudan still refuses the inclusion by the African Union mediation of a region called "Mile 14" in the demilitarised zone the parties agreed to operationalise on the common border.

The mediators on the other side, do not want to follow Sudan on its demand and repeat that the lining of the buffer zone does not mean the demarcation of disputed border between the two countries.

(ST)

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  • 28 July 2012 09:41, by Sudan virus

    No oil transfer of South Sudan through Sudan during this criminal regime!

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    • 28 July 2012 10:45, by Akook

      I wonder how you guys blindly run quick to insult Khartoum, common sense.., what do you think they will do even if it means for them to take back the whole South Sudan?????

      Look, weakness is within us here, they have realised how weak we are in negotiation and to foreign powers, so they have to exploit that chance, fair enough. I wonder when fools among us jump, Bashir.. bla bla bla...pathetic

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      • 28 July 2012 17:55, by panom lualbil

        ’No deal no exportation of oils,’ khartoum said. But fool did not understand what it means. It’s a conflict of greed appeal knowing you wont have second thought, y’all! Why offered khartoum $4b when not asked?

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      • 28 July 2012 20:05, by Tiger

        Only The real true Southerners don’t like the weakness of our governmemt,SPLM party is too weak because of that illiterate fool of Awan Chan,the whole World are laughing at him because he change his mind all the times.Bashir is hoping with some pastive expectation from fool Kiir to raise up the oil money.shame on you Kiir.

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    • 28 July 2012 12:33, by Johndumo14

      South sudan is offering a fortune while khartoum is offering peanuts in the Addis Ababa talks.
      Any thing south sudan proposes khartoum says no ,mean while any thing khartoum proposes, south sudan says yes.

      There will be a time when south sudan will tell khartoum any thing they will say yes!! Move out your troops from Abyei,Panthou,and other areas ,khartoum will say okay !!That day is coming!!

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    • 28 July 2012 12:45, by Johndumo14

      Khrtoum is playing with fire,the arabs in khartoum realy they do`nt understand the dark people who live along the river nile, people who can fight a lion with a stick to protect his or her cows or goats,the support khartoum is getting from Iran,China,and Russia is making them grow horns. They think they can win this war,they are fighting a loosing war.The SPLA-N ARE OUR brothers,we wiil help them

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    • 28 July 2012 13:02, by mohammed ali

      10000000% agree with you, not a single drop should pass through Sudan! Even for $ 50 a barrel.

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      • 28 July 2012 20:40, by zulu

        you be assured that it is your NCP that is extremely worried if south sudan carries on its pipeline plan through djibouti. It has confirmed from djibouti, who did not want to reverse their decision to gain from south sudanese oil. Check it with your boses in khartoum

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      • 29 July 2012 09:56, by Whortti Bor Manza

        Mohammed AliPasha,
        You seemed not to comprehend the recent living memory events. Prior to referundum, Khart said the econmy of Sudan would never be affected. The opposite was true a downturn of 37%.(IMF) Sudan has a black hole budget deficit. To fill would be a miracle beyond any human imagination. Pagan and his groups are really fools who dont understand even the simplest petro economics.

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    • 28 July 2012 16:07, by aliya boy

      can the south spend the billion dollars they want to give to north sudan as cash to help their economy on building our refineries, port buildings and more? remember, the north would use the money given and the oil fees to buy modern weapon to fight us, don’t think the war is over!!
      the south can survive with little if the leaders are not selfish by taking for themselves. let the arab test pain.

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    • 29 July 2012 00:25, by Augustino Ambros

      Suppose man! but now, as you can see that your fellow leaders normally fall into the same hole, just think about & then begin to say no.

      Any way! you are right by the way, but will it be like that?
      If i can ask you!!!

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  • 28 July 2012 09:44, by zulu

    DID YOU SAY THEY LOWERED TRANSIT FEES? HOW DUMB IS THE NCP HOPING WE WILL BUDGE ON SECURITY. NO DEAL ON SECURITY AS WELL AND ALL HELL MUST GET LOOSE AS THE RIOTERS WILL CONTINUE BECAUSE SOONER OR LATER THEY WILL REALIZE THERE IS NO LARGEST SUGAR FACTORY IN AFRICA, NO LARGEST GOLD MINE, NO MAJOR MILITARY SUCCESS AGAISNT THE REBELS AND THE SPLA/N OR SOUTH. AND NO NAME CHANGE OF SPLA IN SOUTH SUDAN

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    • 28 July 2012 10:05, by zulu

      Urging a sovereign state to stop giving save haven to refugees of BN is just moronic and tragic. they should also dismiss Lam Akol, the rebel militias they are haboring in khartoum. otherwise, no basis of accusing Uganda, South Sudan, Libya or Chad when you the major terroriests cause havoc to your neighbors. but south sudan will teach you a lesson to remember.

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  • 28 July 2012 09:49, by mayom maboung marek

    Khartoum at this put Security as point one but, during Transition period, they were adamant to demarcate the border.

    the South Sudanese of this twenty first century are not like your South Sudanese Juba chiefs of 1956.

    take care Arabs!

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  • 28 July 2012 09:56, by Gabriel KK

    South Sudan must continue with the proposed pipeline rather than wasting time on endless negotiations with greedy criminals. There is no need to trade with nation who branded us as their number one enemy. leave them alone to die in that poor desert.

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  • 28 July 2012 10:32, by solider

    S.SUDANESS CITIZENS MUST STAND TOGETHER FOR THIER DIGNITY AND DESTROY ALL THE OIL INFRASTRUCTURES BCOZ IT HAVE BEEN BUILT BY THE ARABS . ARABS SPENT BILLIONS(NORTH MONEY) BUILDING THE INFRASTRUCTURES AND OIL PIPES .SS PEOPLE WILL LOSE RESPECT IF THEY DIDN’T DESTROY IT

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  • 28 July 2012 10:48, by philip andriko

    lowering fee mean death trap for figs who do not no thier really enemy of life ARAB those who were first colonized by ARAB will Lead us back to ARAB without knowing their foot step they are heading for another problem which they will leave behind to kill their own son if not completed now.we seperate to manage our own afairs without arab why oil back to them while those drunkard will just sit.

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    • 28 July 2012 11:03, by philip andriko

      how can we pay rental while we got money to build our own pipeline do not invite other war of oil not of country again,these oil if not well handle .JESUS shall reach us looking for market and no one will be long interested to buy it.let build our own pipeline and start refining it and ARAB will buy from us not we to import fuel from ARAB,we can not manage our problem that why you chose ARAB optio

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  • 28 July 2012 12:41, by BM Bol

    "we reduced our demand from $36 to $32", Awad Abdel-Fatah. That $32 is still extremely high and South Sudan leadership should stick to their guns.

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    • 28 July 2012 13:06, by mohammed ali

      Bol , yes they shouls stick to their guns and keep the oil production shut down!

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      • 28 July 2012 14:23, by daniell

        32 dollar is not even close to a good deal with the price of petroleum at market look less expensive.Should the price be fix or variable? If the price of barrel goes up then the charges proportionally goes up.Thanks.

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  • 28 July 2012 13:44, by Northern Sudanese

    It is just funny the way southern sudanese asylum seekers say that oil should not pass and that they don’t need oil now lol!

    without oil, everything is on hold, all developments are on hold, you run out of dollars next month, you can’t feed your people, you can’t pay salaries! inflation 80%, poverty 83%, economy 98% fucked!

    yes you don’t need oil, but your starving nation does...so its $32 salva

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    • 28 July 2012 15:42, by zulu

      our relationship is a cozy one. as it say, "till lies do us part" we are going to remain mutual foes for quite some time.
      Personally, I am excited the NCP has rejected the offer by South Sudan while subsidies are drastically cut. That means, our expectation for the regime change is now high and NCP will blame us.

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    • 29 July 2012 14:51, by hellonearth

      northern sudanese
      just hear your self and see what is going on in khartoum. and aslo look at what is going on in Juba. you must be delusional. South Sudan is not in deeper problems like the Sudan. get your facts straight before posting crap here.

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  • 28 July 2012 14:47, by Padiet Deng Alony

    border need to be demarcated first,with out that every thing will still be back again.
    what are the gurantee that north will not create border war if not demarcated. let us think wisely.

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    • 28 July 2012 20:52, by panom lualbil

      It’s okay unless money greed leaders like VP of somalia will be gone back to khartoum if our economic wont earn us any money. This is another way OMER AL BASHIER wanted our oils back.

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  • 28 July 2012 15:54, by master

    your master ordered u to resume oil pumping so u have only option : to say yes
    southern weak brain ho ho ho

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  • 28 July 2012 16:08, by Abraham

    NCP is not negotiating in good spirit and South Sudan delegation had known this since day one. UNSC is just counting days...and Khartoum will just come down only when things turn nastier. South Sudan, given its past survival from 1955-2005, nothing will worry us so much. Infact, South sudan will devise other vital industries, e.g Agriculture. Oil reserve underground doesn’t stall.

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  • 28 July 2012 16:16, by Abraham

    FAKE ARABS

    Get this to your THICK heads, South Sudan 8millions people will survive for the next infinite time. We have been thru severe hardships imposed on us by your successive brutal regimes in Khartoum but in the end we triump. Oil shutdown will have less comparative impact on us given that we’re masters of our own affairs. Just lick your wounds!!!

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    • 28 July 2012 16:43, by Kang

      we do not except that increment of transit fees like what have been mentioned above by my colleagues. Arab government is doing noting that oil is ours God provide to us so this time around we didn,t need any single oil will go to Arab north like the past and they didn,t build any bridge to connect the south in the past while oil found in south territory b/c they are selfish peoples

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  • 28 July 2012 20:45, by Mapuor

    32 USD per barrel,and what is the price of a barrel,suppose its still 75 USD ON average,what percentage is that?its 42.7%,so the difference from 50% is 7.3%,is this fair and on top they still demand more.Oil prices fluctuate and suppose they hit 32 USD what will happen.War is imminent,75 corrupt officials must be jailed be4 anything happens

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  • 29 July 2012 04:21, by Tribe

    Oil has never been our lifeline. Forget the fearmongering of the likes of UN and West which give NCP a hope of South collapsing in absent of oil monies. Since the creation to 2005, South has been there and still kicking. Going forward without it will be bumpy n we fully know that. So wipe your filthy asses with that $ 21 per gallon. We willn,t drink it but % sure it will n,t rot , stale, decay.

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