Home | News    Thursday 15 November 2012

South Sudan’s Kiir says oil production to resume next week as Khartoum asserts security prerequisite

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November 14, 2012 (KHARTOUM) – The president of South Sudan Salva Kiir declared that his country’s oil production will be restarted next week after nearly a year of suspending it over a dispute with Khartoum on transit fees for exporting the crude through the north’s pipelines.

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FILE - South Sudanese soldier by damaged oil well, Unity state, March 3, 2012 (Reuters)

Kiir made the announcement during a meeting he held today in Juba with visiting Kenyan deputy Prime Minister Uhuru Kenyatta.

"It is after the successful completion of negotiations with the Sudan [that we] will re-launch the transporting oil [pipeline] next week" he said.

Last September, the two countries reached an agreement on the oil driven mainly by the economic difficulties they faced that were compounded by the oil shutdown which denied them billions of dollars in revenues.

Under the final deal, South Sudan will pay between $9.10 and $11 a barrel to export its crude through the north. Juba will also pay $3.08 billion to help Sudan overcome the loss of three quarters of oil production due to southern secession.

South Sudan’s pre-shutdown oil production was approximately 350,000 barrels per day (bpd).

In Khartoum the Sudanese oil minister Awad al-Jaz told the Undersecretary of South Sudan’s oil ministry, Machar Aciek Ader Nyang, that implementing the oil accord is contingent upon finalizing a deal on security arrangements.

He underscored the importance of security to provide a conducive environment for oil production. The two sides discussed technical details for restarting oil flow in a closed session.

Nyang told reporters upon arriving in Khartoum that South Sudanese oil will reach global markets by the year end and stressed the importance of cooperation between the two countries on areas related to oil.

The Secretary General of the Ministry of Oil Awad Abdel Fattah on his end told reporters that South Sudan oil will arrive at Port Sudan terminals within two months if a deal on security arrangements agreement is reached.

The statements by the Sudanese officials cast doubts over whether Khartoum will allow the export of Southern crude to resume in the event that security deal remain elusive. Sudan accuses its southern neighbor of backing rebels fighting its army in border states of Blue Nile and South Kordofan. Juba however denies these allegations.

(ST)

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  • 15 November 2012 08:31, by valentinoakec@yahoo.com

    One would wonder why Khartoum is adamant to put unpractical conditions, conditioning Juba to disengaged with the SPLM/A North, I don’t think it was a pre condition when the cooperation agreement was signed. SPLM/A North is a northern rebel group that south Sudan has no hand in it, I can see that, the cooperation agreement will not be honesely implemented by the ruling regime in Khartoum.

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    • 15 November 2012 08:37, by Sir King

      Look at this poor man! Surely, let them train more Militia in all states and get rid of this fake cattle keeper who doesn’t know how to rule mankind. He deserved to sit under his mother tukul. The man is weak to the extent he can not even lead cattle camp. Sorry indeed. Why should God punish South Sudanese again through Kiir Kuethpiny. Ci piny kueth ok kaya!

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      • 15 November 2012 09:32, by Abyei Soil

        The coming back of oil actually wuill impacts positively on economy of both Nation, the challenging statement remaned in its place, President Al Bashir said in his argument angrily that South Sudan oil will never cross our land again even if they offer us higher rate, isn’t that hard to change in him now?

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        • 15 November 2012 17:58, by Northern Sudanese

          Abyei Soil
          may i remind you that south is in total crisis, humans change their minds overtime, that is something natural. but currently more than halve south sudanese are in food crisis, and over 90% are in poverty. Heglig remains in the north, and kiir said oil won’t flow through sudan any longer and that he willl built new pipelines, what made him change his mind?

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      • 15 November 2012 12:18, by Kenyang

        " Kiir Kuethpiny" Lol
        Totally agreed with all said.
        If Kenyan official wasn’t there, i bet Mr. Kiir Mayar would have put foot in his mouth at the Church.

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      • 15 November 2012 22:13, by Augustino

        Yes, man cattle camp is run by wise enough man because he is dealing with un educated people. here Kiir is dealing with educated population with the help of good learned man- Doctor Riek but he is not able to lead people in a civilized way. I wondered why?. south sudan should get new leadership in next round of election- Riek must stand up for leadership. Thanks

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    • 15 November 2012 13:24, by Dinkawarrior

      No oil production ’till we solving Abyei issue and border demarcation. Believed it or not! Kiir will be held accountable for not listening to us while we refused to let our oil be stolen again. Mr. Cowboy please don’t risk your life for nothing, the leader who don’t listens to his people is always regret at end. Be careful for yourself, we’re getting tied of you!!

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      • 15 November 2012 17:59, by Northern Sudanese

        Dinkawarrior
        ’’us’’, who you mean with ’’us’’? you mean asylum seekers or prisoners in US prisons? well both of them aren’t important, the important are the 4.7 milion starving southerners here.....

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    • 15 November 2012 16:40, by Peacocktail

      OIL WAR!!!!!
      There is Big problem awaits those Twin bad shaped neighbors calls Sudans moving toward creating Massive Territorial Oil War ignited by IRAN and Russia.
      South Sudan Army should strengthen defend mechanism and forge an ally now or shall engulf in War of OIl whose end is invisible.IRAN is at war with US and Isreal and probably South Sudan shall be forge as battler field for powers on O

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    • 15 November 2012 23:20, by Mwalimu Kuol

      Exporting our oil through Sudan should be a short-term basis.Meanwhile we are using the north pipe line, our government should be exploring alternative strategies to get our oil into international market. We can’t realize on the sudan’s pipeline for long because they will have excuse to steal or stop its flow when the political situation are tense. Sudan pipeline is potential problem and is risky!

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  • 15 November 2012 08:34, by Ruach

    Compensating them after seccession! We are giving our money to people who will come to bomb us again! Joke!

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    • 15 November 2012 23:04, by panom lualbil

      Not us son of cowards but your anyagates whom MR OMER fucked and used to destablise our, fool. See, you’re about to shit on urself like RIEK MACHAR during civil-war ago. We paid Khartoum $$$$$$ for reasons, fucky stay low.

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  • 15 November 2012 08:41, by Man alone

    All the same,let the production and transportation of our crude oil resumes so that those big belly ’’BANY’’ resume embezzling our oil money.
    remember the common Chinese saying that, ’’Rot in fish starts at its head’’.
    Imagine if South Sudan wasn’t bestowed with natural resources like oil,how would our country look like under this current government???????????????
    GOD BLESS S.SUDAN.

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  • 15 November 2012 08:41, by Martin Muong

    Many thanks indeed we are optimistic and positive about this resumption of oil production. All these turmoils and chaos are instigated by shutdown of oil production. We look forward to seeing oil resumption soon. Austerity and other economic related problems will be sorted out in a less than a minute.Bring back the wealth and eliminate the destitution through betterment of diplamacy.

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  • 15 November 2012 10:38, by panchol

    Let’s open our eyes to the production and exportation of our crude oil so that it will not be stollen again. Mind our Government about 100 metres pipeline from main pipeline to Khartoum which was recently constructed by Chinese.

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    • 15 November 2012 13:40, by Paul Chadrack

      We should not fear from Sudan government, but our own the so call government of south sudan,our big thieves in Juba are well prepared to steal what ever dollar that will come from oil,because they know with very strong pressure which will come to them fm international community will terminate them come 2015 elections, so Kiir and his entourage’s looting spree is Imminent.s sudanese to be vigilantm

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  • 15 November 2012 11:30, by Makunon

    Where are economist to convince those war amongst NCP who doesn’t believe that opening of pipeline boost economic of both Countries.

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    • 15 November 2012 16:27, by Peacocktail

      Leave them alone, SPLM N issue is not South Sudan Problem,Oil Resumption is stimulation of both Countries Economic, Sudan Exchange Rate was very bad due to lack of Hard currency in Sudan Bank, If they want to steal the SOuth Oil against, we shall not compromise them this time, Our Greater fighter Com.Isaac Mamur,Peing Deng are there to led us to retake Khartoum this time, No PEACE

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      • 15 November 2012 18:04, by Northern Sudanese

        Peacocktail
        may i remind you to forget about sudan currency crisis and focus on what happened in south after shutting down the pipes, 98% economy fucked, empty fuel stations , all development projects put on hold, over 80% inflation , worst health condition in the world, capital juba went dark , more people fell in food crisis, we aren’t stealing your oil and we didn’t ask for oil deal anyway

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        • 16 November 2012 06:49, by Ruach

          North Sudanese! I dreamt last night of Israeli air strikes against Khartoum Terrorists and it will come soon! Your brotherhood(Muslims Brotherhood)in Egypt must face Israeli Air strikes sooner than later.Death to all Brotherhoods!

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  • 15 November 2012 19:30, by Nguetbuny de Luelpiny

    This is a desparate attempt by Kiir Administartion to steal oils revenues for their own benefits. it is not Southern benefits the settlers North the benefits of this deal. $9.10-11.00 per a berrel& $3.08 conpensation for what? what a doom deal. Northern is a fox and south is valture looser.
    It is Kiir Administ deal, not the south deal as I see

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  • 15 November 2012 20:07, by jongatong

    Oil production will resume next weeks as said by the President of the Republic of South Sudan. What next if the oil start? i hope so the security is tight up there to prevent those corrupties greedy leaders with in the Government of South Sudan who are always running against your government.

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  • 15 November 2012 23:17, by Mwalimu Kuol

    Exporting our oil through Sudan should be a short-term basis.Meanwhile we are using the north pipe line, our government should be exploring alternative strategies to get our oil into international market. We can’t realize on the sudan’s pipeline for long because they will have excuse to steal or stop its flow when the political situation are tense. Sudan pipeline is potential problem and is risky!

    repondre message

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