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South Sudan to renegotiate oil fees with Sudan: official

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January 31, 2015 (JUBA) – South Sudan’s petroleum minister, Stephen Dhieu Dau said his country will consider whether to continue paying Sudan $25 per barrel of oil or push for reduction.

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A pipeline that transports crude oil from the south to Port Sudan (Reuters)

The move, Dau said, was as a result of global fall in oil prices which has badly affected South Sudan’s largely oil-dependent economy.

Juba pays Khartoum $25 per barrel for oil transported through the Sudanese territory.

Dhieu, however, said the $25 per barrel of oil being paid was meant to expedite the repayment of a $3 billion compensatory package they agreed to pay Sudan following South Sudan’s cessation in July 2011.

“We will consider the charges and we are studying how to address this,” said Dau.

He said the “tariffs cannot be negotiated,” but appealed to the African Union High Implementation Penal (AUHIP) for South Sudan and Sudan to consider his calls.

“The mediators who mediated the peace and the cooperation agreement between the two countries should have the same argument that South Sudan should not be allowed to collapse if we are losing more and it has become now in favor of Sudan,” said Dau.

South Sudan heavily relies on oil to fund up to 98% its budget. Oil production in Unity state closed in December 2013 when rebels overran the production fields and reduced oil output by a quarter.

The situation has worsened as global oil prices continue to decline amid a declined in South Sudan’s local currency against the dollar.

It remains unclear when Juba will initiate discussions with Khartoum.

South Sudan received $3.376 billion in oil revenue in 2014, the petroleum minister announced early this year. The young nation, however, paid $884 million to Khartoum, $781 million for repayments of loan and retained $1.711 billion as net amount.

“Indeed, despite the ongoing crisis, South Sudan emerged from 2014 not submerged in debts to foreign creditors but demonstrating fiscal restraint responsibility,” Dau earlier disclosed.

The minister further said the 2014 “challenges were compounded by recent dramatic reduction in the world market price of crude oil.”

“It will come as no surprise that one effect of the decrease in the global oil prices is the fairly substantial reduction of the [oil] revenue our nation is receiving in its sales of crude oil,” he said.

The one year old conflict in South Sudan led to closure of oilfields in Unity state as daily production dropped to 160,000 bpd.

(ST)

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  • 31 January 2015 17:57, by Never

    Just say you in Juba must have to decide weather to continue paying to Khartoum this ????15 per barrel.

    All South Sudanese fight before about this resources but now fewer of people owning them.

    But did you know what Jesus told to Nicodemus?

    At least you be born again. That means you Juba people must have to been born again.

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  • 31 January 2015 18:41, by Force 1

    This is why we in South Sudan are so dumb! This pipeline was bought and built using South Sudanese oil money. When did it become Sudan pipeline to pay them transit fees?
    Second; the international transit fee standard per barrel of oil is $ 0.59; how could we be so stupid to pay $ 25.00 per barrel as transit fees for our own pipeline?

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    • 31 January 2015 18:41, by Force 1

      Now the price per barrel in the market dropped from more than $ 100.00 to less than $ 45.00 per barrel. This is not a daylight robbery by Khartoum but it’s our stupidity to be paying Khartoum for the pipeline that’s ours!

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  • 31 January 2015 19:04, by Kim Deng

    Not only that, the oil price for South Sudan is not at international market price, which is $45pbl. Instead, it is between $20-$25pbl. If Dinka Kingdom pays Khartoum total charges of $25, what benefit does this Kingdom gain back from that market?

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    • 31 January 2015 21:16, by papamoon

      Kim, those fools in Juba totally forgot about the agreement, they signed and done until the end of the contract. Fools are always fools contract was fix no changes or amendment until the expiry date… they will be getting a negative 10 dollars on the barrel if they have any oil left to sell

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  • 31 January 2015 19:35, by Northern Sudanese

    The pipeline was built by Sudanese money. when it was being built and paid for, south sudan fields were barely producing anything to finance a multi billion pipeline project. you can dream all you want but the charges won’t change a cent since our original price was $36 instead of $25. if you want to waste money on another pipe and make a deficit its up to you

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    • 1 February 2015 03:49, by Force 1

      Hey Northern Sudanese;
      The international standard oil transit fees for each barrel of oil is $ 0.59 or 59 cents and whoever is giving you $25.00 transit fees is out of his mind. If you don’t take 59 cents per barrel transit fees; then the alternative will be the new transit route through Kenya!

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      • 1 February 2015 11:22, by Northern Sudanese

        lmao do you really think kenya pipe is still a threat? if you consider all the costs of building a new pipe to kenya which is anywhere between 3-6 billion $ south would get nothing but a loss. you been saying a new pipe since 4 years ago, nothing changed. let alone the fact that the barrel of oil went down from $100 to below $50 lol hahahhaha

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    • 1 February 2015 04:49, by Hardlinner

      Nothern sudanese, it is matter of of being logical to oneself. South sudan can not sell it crude oil at net lose. They wld be better of shutting off oil flow since they r getting zero dollar at the moment. S sudan agreed to pay sudan 25 dollars becos they thought oil price stagnate on over 100 dollar per barrel. But since thing hv drastically changed, they have to embark on gentlemen agreement.

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      • 1 February 2015 11:25, by Northern Sudanese

        they can get net loss not just that but also probably go into deficit due to what you have to pay. you pay us $26-$25 and the oil companies around a another $20. so any slight decrease in the oil price and south would go into deficit. and the agreement won’t change a cent. we offered 50/50 you refused. today your the biggest losers

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    • 1 February 2015 09:22, by South South

      Northern Sudanese,

      This is why it is very hard for me to believe anything you say. Everyone in the world knows that pipeline in a poor country called Sudan was built by oil money from South Sudan. Everyone in the world knows that expect people who cover their heads with table cloth. Lies and lies are very connected to your culture, shame

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      • 1 February 2015 11:19, by Northern Sudanese

        South South

        good to know that your still alive in that shithole lmao. anyway, tell me this. the pipeline was constructed in the 90’s. tell me what economic contribution the south made to the economy since 1956 to 2000. literally nothing. Sudan financed the pipeline through our own money lmao sudan poor and is south rich? last time I checked south was now next to somalia lmao

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        • 1 February 2015 13:11, by South South

          Northern Sudanese,

          Just keep talking like a small baby here. Pipeline was financed by oil money. Poor country called Sudan did not pay one cent. It was a loan to be paid back from oil money. You can sing day and night, but the facts are going to stand there for years to come. Why do Sudanese smuggle themselves to Gulf Countries in thousand numbers? They are running away from poor conditions.

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          • 1 February 2015 13:48, by Northern Sudanese

            the pipe was built by sudanese money, accept that fact. oh yea true, south sudan is so succesful lol I wouldn’t be surprised if you told me that south sudan is the most successful nation in the history of Africa lmao

            Tell me why South Sudan refugee population is around a million in neighbouring countries today of which 150,000 are in Sudan?

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            • 1 February 2015 15:03, by South South

              Northern Sudanese,

              We have in South Sudan million of Sudanese refugees, refugees are refugees, that’s not the question. The question is, why do Sudanese pour to Gulf Countries in millions looking for jobs? Why don’t you create jobs to them in Sudan? Answer: Sudan can not create jobs for them. Why? Poor Country.

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              • 1 February 2015 15:51, by Northern Sudanese

                LMAO

                this is exactly what I expect from an idiot like you lmao. who told you there are a million North Sudanese refugees in South Sudan? the truth is this, there are a million south sudanese refugees scattered round east Africa of which 150,000 are in sudan. why? poor country.... Sudanese go to the gulf because it provides better living, something normal

                south sudan is much poorer than sudan.

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  • 1 February 2015 01:44, by lino

    Hahaaaa! Brothers, since negotiation in 2011-2012, I have been suggesting that SS and Sudan to share oil 50/50 and the SS benefiting from Sudan’s Schools and Health Services but people were laughing at me.
    Now Sudan is getting $25 and the SS $20 or less. It is an agreement and I think Sudan will not consider.

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  • 1 February 2015 04:55, by Bentiu Sudan

    Sudanese,

    Please do not change your charged price. Let price stay at $25 or raise it to it original price at $36.

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  • 1 February 2015 07:48, by Pif Paf

    This GOSS is a JOKE, shortsighted politicians with only their personal gains at heart. SPLM campaigned hard to separate thinking they were on their way to riches in what is now a landlocked & broke war zone. Anyways, you guys can forget about renegotiating any price, if you like, you could always close the pipeline and claim your economic independence, remember how well that worked out?? Lol

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  • 1 February 2015 09:06, by sudani ana

    There are many issues to consider here. For example South Sudan is not being a good neighbour. GOSS continues to provie arms, logistical and financial support to sudanese rebels such as SPLM-North and JEM as reiterated many time by GOS officials. Why should Sudan care about helping GOSS out of their current predicament.

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    • 1 February 2015 09:29, by South South

      Sudan ana,

      So, South Sudan is paying you money to live on and you call that help from you. Fake Arabs in Sudan are our number one enemies, so why should we be a friend neighbor to them? Get it right from me. Fake Arabs are not in a good position to tell us what we do or what we should not do.

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      • 1 February 2015 09:37, by South South

        Sudan ana,

        Take it from me. We do not have GOSS anymore. What we have now is " The Republic of South Sudan". Through our gun points, you left South Sudan with your head down. We are a free country, country no.54 in Africa and no.193 in the world, you get it. Take it as it is or go to the hell. Arabs are losers in any place in the world (Spain, Israel and Now South Sudan)

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  • 1 February 2015 09:51, by Konan

    Hi Janopein,

    Come on guys, if the oil price becomes $250 per barrel, would like reconsider paying Sudan a transit fee of more than $ 25 per barrel? Better you look for alternative pipeline. What a short sighted politicians! Dinka Kingdom is a joke...ha ha ha ha ha

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    • 1 February 2015 10:14, by Konan

      Come on guys, if the oil price becomes $250 per barrel, would you reconsider paying Sudan a transit fee of more than $ 25 per barrel? Better you look for alternative pipeline. What a short sighted politicians! Dinka Kingdom is a joke...ha ha ha ha ha

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      • 1 February 2015 10:26, by South South

        Konan,

        We will tell you what we will pay for renting the pipeline, it is you to take it or reject it. I know Dinka have done amazing job by kicking out Fake Arabs in South Sudan, it that killing you? You have to live with it forever. Nothing you can do, just take it hard.

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        • 1 February 2015 11:27, by Northern Sudanese

          you kicked no ass out, we gave you freedom through a referendum. let sink through your dirty anus. besides, south sudan is currently failed like somalia. if we refect then we have other resources and more options while you would lose 98% of your money for 4 years and wait until you get a new pipe and pay for those costs and end up in deficit lmao hahahha

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          • 1 February 2015 13:19, by South South

            Yes, we did kick Fake Arab asses out from South Sudan. it is a fact known by human being, only people in sheet and table cloth on their heads need additional lesson to understand that. If you follow the handball world cup now in Qatar, Qatar has 17 players in its team. 14 of them were nationalize last year. With the all money Qatar has, they can not produce good handball players? Why? Arab Culture

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        • 1 February 2015 11:28, by Northern Sudanese

          besides, its our pipe in our land at our port. we set the prices and not your broken ass. enjoy the $5 per barrel you receive today hahahahaha

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  • 1 February 2015 11:35, by Northern Sudanese

    South Sudan’s budget depends on oil sales by 98%. now oil production in south sudan decreased to below 200,000 instead of 300,000 due to the war. that cut the budget by halve. now oil price per barrel fell from $100 to around $40, that means it fell again by another halve + war now throughout the whole country etc. whoever thinks south is capable of financing a $4-6 pipe better dig many graves.

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    • 1 February 2015 11:37, by Northern Sudanese

      $4 - $6 billion dollar pipe

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      • 1 February 2015 16:27, by Force 1

        Northern Sudanese;
        South Sudan produces 350,000 barrels oil a day; that’s 3500 × 7 = 2,450,000 barrels a week then multiplies that by 52 weeks annually that would be 2,450,000 × 52 = 127,400,000 barrels annually. Multiples that by an average $ 60 per barrel and that would be 127,400,000 × 60 = 7,644,000,000 billion dollars a year or 7.644 billion dollars annually for South Sudan.>>>>

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        • 1 February 2015 16:28, by Force 1

          >>>>If you tell us that the pipeline is going to cost us 4 to 6 billion dollars to build through Kenya; then that would be a one year cost from our oil. So please stop the bullshit that pipeline is going to very expensive for us to build!

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          • 1 February 2015 16:30, by Force 1

            Northern Sudanese;
            South Sudan produces 350,000 barrels oil a day; that’s 3500,000 × 7 = 2,450,000 barrels a week then multiplies that by 52 weeks annually that would be 2,450,000 × 52 = 127,400,000 barrels annually. Multiples that by an average $ 60 per barrel and that would be 127,400,000 × 60 = 7,644,000,000 billion dollars a year or 7.644 billion dollars annually for South Sudan.

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          • 2 February 2015 10:41, by Northern Sudanese

            of course, 1 whole year spending 98% of your money on a pipeline. how many citizens would remain alive from the hunger and cancellation of services?

            BS? LMAO why didn’t you build it in the past 4 years

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  • 1 February 2015 15:33, by Bentiu Sudan

    I wish the two Sudan could be re-united. Salva Kiir of South Sudan is too foolish, visionless, and power hungry tribal leader. If the world could give South Sudanese another chance now, then vote would be 100 percent unity of Sudan there is no question about this.

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    • 1 February 2015 15:53, by Northern Sudanese

      I want unity too, I wish we could drop this transit fee nonsense and unite again since we are all Sudanese. its not a question of if but when we will reunite again. re unity is inevitable.

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      • 1 February 2015 16:35, by Force 1

        Northern Sudanese
        Yes you parasites need reunification because you can’t survive without South Sudanese but that’s not going to happened! You Sudanese will stay with your empty pipeline without South Sudan forever!

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        • 2 February 2015 10:50, by Northern Sudanese

          LMAO at this idiot force1

          listen lil kid, your country south sudan is facing the largest famine in African history and you are saying the north can’t survive without your asses?

          Sudan gdp grew around %3.8 last year while your fell by over %10 hahahaha

          a million south sudanese left the south as refugees, 150,000 in sudan because the country is fucked up

          wake up buddy, we are all sudanese

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          • 2 February 2015 21:25, by Force 1

            Northern Sudanese;
            I agree with you that South Sudanese leadership today have low IQ that’s why they are giving you $25.00 per barrel as transit fees; well here what you need to do if you’re really smart!Save that money for your next generation in Sudan because >>>>>

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            • 2 February 2015 21:29, by Force 1

              >>>>South Sudanese next generation are not going to be that stupid to give you that kind of money as transit fees and are not going to use that stupid pipeline of yours but the alternative pipeline or Railways tankers through Kenya! So if you’re smart enough then save that money now for your children!

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      • 1 February 2015 17:31, by South South

        Northern Sudanese,

        What? You want us, black Africa to Unite with Fake Arabs with that culture of yours, Oh, you are dying to get our oil again. Poor country called Sudan is struggling. Damn unity with North Sudan.

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        • 2 February 2015 07:37, by Konan

          South Shit,
          Reunification of old Sudan will not include arrogant, bloody, greedy and stubborn Dinka. However, Nuer, Shulk, Equatorians..etc. are welcomed to join.

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          • 2 February 2015 08:28, by Force 1

            Konan;
            Sure you like and welcome the tribes you mention because they are the dumb ones you would fool but not Dinka.

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        • 2 February 2015 10:54, by Northern Sudanese

          South South

          do you never get tired of that oil song? why can’t you accept the fact that Sudan gets around $25 of your barrels and you just $20?

          besides, the oil gap in our economy is already closed by about 10%. by the next 2 years we wouldn’t even care if your oil burnt all in the air.south sudan is the poorest country in africa, million people left it as refugees :)

          am black african too dude

          repondre message

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