Home | News    Friday 22 January 2016

President Bashir agrees to review S. Sudan oil transit fees: official

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January 21, 2016 (KHARTOUM) – In the wake of the significant fall of oil prices in the international markets, the Sudanese president on Thursday accepted, to review the oil transit fees agreed upon with neighbouring South Sudan in September 2012.

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Sudanese President Omer Hassan al-Bashir (Photo AFP/Ashraf Shazly)

An official source told the official news agency SUNA that "President Omer Hassan al-Bashir has directed to review of the interim economic measures with the Republic of South Sudan.

The official did not, however, provide further details on the matter but said al- Bashir’s decision followed a request made by South Sudan’s foreign minister Barnaba Marial Benjamin.

SUNA had earlier released a news wire saying Bashir has "agreed today [Thursday] to reduce oil transit fees of the South Sudanese oil through the Sudanese territory".

But later the news agency released another news indicating Bashir "directed to review".

Officials in Khartoum said the measure aims to support the recovery of the new state after two years of war and it took into consideration the vertiginous drop in oil prices.

South Sudan said it has written to neighbouring Sudan, requesting it to make "rationale charges" in the wake of the current collapse in global oil prices.

"Yes, we have written to the government of Sudan to accept our request to re-evaluate the charges and reduce them to meet the current oil prices in the international market", Marial told Sudan Tribune on Wednesday.

He added, “We are not threatening. We are asking for dialogue within which we are asking the government of Sudan to make rationale decision”.

The minister said he recently visited Khartoum to seek support from the Sudanese government over the implementation of the peace agreement, which the Juba government signed with the armed opposition last year.

"Sudanese people are passionate and I am sure they would understand. They have accepted to dialogue and our ministry of petroleum and other relevant institutions are already following these discussions,” said Marial.

“We are also at the level of the ministry following it with the Sudanese foreign ministry through the Sudanese ambassador here. So indeed there are discussions going on and I am sure these discussions will produce something positive and results will be in the two countries’ interest", he added.

In August 2013, South Sudan agreed to pay to Khartoum $9.10 for the oil produced in Upper Nile state and $11 for that of Unity state which produces some 20% of South Sudan’s oil. Juba also agreed to pay the Transitional Financial Assistance (TFA) to the average of the agreed oil transportation fees.

However, South Sudan government had earlier asked Khartoum to cut the lease of Sudanese oil transportation facilities, arguing that its request was prompted by the current fall in oil prices on the international market.

The South Sudan’s Petroleum and Mining ministry said it may be forced to shut down its oil fields in Upper Nile state and turn off pipeline should the Sudanese government decline a request to lower its oil transit fees.

“We are left with no option at the moment rather than to shut it down because it’s not feasible. We cannot sell the oil at loss”, the ministry said in a memo sent to Sudan’s Ministry of Petroleum and Mining last week.

South Sudan currently produces 160,000 barrels of oil per day, despite a decline in its oil production due to the violent conflict that engulfed the world’s youngest nation.

South Sudan reportedly receives less than $5 per barrel from its oil when transit charges paid to Sudan are deduced and oil exploration companies are paid.

(ST)

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  • 22 January 2016 02:11, by lino

    Haha!!! Smart Sudan wants to cheat you once more; be very vigilance this time Southerners!!!!

    repondre message

    • 22 January 2016 07:01, by Khent

      Considering that South Sudan is completely dependent on that Islamist regime, I don’t anticipate a dramatic drop in the transit fees. That’s precisely what happens when you let your guard down and start believing in fairy-tales. Had Garang lived, he would have completed the construction of the alternative pipeline in 2008-9.

      repondre message

      • 22 January 2016 12:07, by Shadrack Nuer Machut

        Khent,
        There is no issue of cheating here. It is either Khartoum accepts it or loses it so that it is a lose-lose game. We can not exhaust the oil for foreigners though citizens are not benefiting from it as expected. The country belongs to us now and the next generation to come, therfore, we need to know that coming offsprings have something left for them.

        repondre message

    • 22 January 2016 07:51, by Bazinguaboy

      Always the doubting South Sudanese. How would Sudan cheat on South Sudan if it accepted South Sudan’s request to reduce the oil transit fees? It is we in South Sudan that requested the change and not Sudan. Do read carefully before commenting based on dislike and suspicion.

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      • 22 January 2016 08:08, by Khent

        Bazinguaboy

        Don’t be so damn naive. Khartoum is making more from South Sudan’s oil than Juba itself and you think that they’re going to reduce the transit fees to a reasonable amount!? Short of Juba developing a conscience, an unforgiving warrior spirit and intelligent political and economic strategies, Khartoum will continue to play South Sudan like a banjo...

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      • 22 January 2016 09:51, by Eastern

        Bazinguaboy,

        Don’t be a pedestrian in this. Considering that Bashir has accepted to reduce the transit fees to $15 per barrel and the global oil price is $30 per dollar how much does South Sudan get after paying the Chinese and oil workers? It only makes sense to shut down the oil wells now not later!!!

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  • 22 January 2016 03:55, by Ayuiu Makuac Lam

    Lino,
    Sudan is not cheating South Sudan government, it is alternative for both governments to maintain their economy.
    If South Sudan shut down their oil industry then Sudan, is not crying, South Sudan itself will suffer out Sudan because South Sudan economic has destabilize by rebellion therefore, Khartoum, is not severely affected South Sudanese decision of shutting down oil pipe line.

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    • 22 January 2016 06:48, by Hardlinner

      lino, you certainly lack vision. the agreement is win win situation in both camps. Sudan knows the repercussion of oil shutdown. south Sudan should have from first agreed on percentage not dollar value. atleast S. Sudan have now learned lesson. crude oil price is never a fixed commodity and therefore, the dummies in Juba should have known that.

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    • 22 January 2016 10:49, by Son of Ngundeng

      This will be the end of JCE leadership with their Sultan KIIR.

      Poor Dinka are starting running to East Africa to seek Refugees settlement.

      Son of Prophet
      currently in IO HQs.

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      • 22 January 2016 16:01, by Wani khooto

        SON OF NGUNDENG,
        some time i wonder to know what is your level of education and stupidity,this is a matter of nation economic not to waste our resources and you think it will only affected Dinka alone?can you learn how to put a rights word at a right time.this is an intellect forum, stop your tribal mind here,you are shaming the whole nation,this web is accessed by the whole world.idiot

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        • 22 January 2016 16:14, by Wani khooto

          for your information,we need to love our country whether rule by someone who came from tribe we don’t love.economic failure will affect even southern who are hiding their asses in western world like you.stop that game pliz and let support peace so that we develop our nation.

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  • 22 January 2016 08:56, by lino

    Hahah!!! Brothers. Lack of vision, you can’t say that to someone who leave all his life with these Mondocoroo ya Jaik. I know they will accept the reduction of Transit Fees for now, but they will milk you for ever brother. Mark my words for the future generations:

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    • 22 January 2016 09:07, by lino

      1- You will not hear about Pan-Thou/ Hegelig anymore.
      2- No more talk about Mile 14. So Malong Awan Area is gone.
      3- Boarders will be open wide as the Southerners are just consumers.
      4- Abyei Issue is completely buried. another Dinka Area is Gaven away.
      5- Southerners will be paying Sudan for no less than 20 years, the amount of $3 billion dollars to cover lost cause by independent.

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