Home | News    Friday 31 August 2012

S. Sudan predicts oil production resumption in "four to six months"

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August 30, 2012 (JUBA) - South Sudan hopes to resume oil production through neighbouring Sudan after taking its unilateral decision to shut down oil production in January, accusing Khartoum of stealing its crude oil, the country’s oil minister said on Thursday.

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Sudanese repair crew start working at the Heglig oil facility 2 may 2012 (Getty)

Minister of Petroleum and Mining Stephen Dhieu Dau made the remark at a news conference held in the country’s capital, Juba, during which he said the resumption of oil production at blocks 3 and 7 of Upper Nile’s oilfields will require “about four to six months” and “up to one year for production to resume for blocks in Unity State.”

When South Sudan seceded in 2011, it took with it the majority of what was Sudan’s oil fields. Distribution of oil wealth became an issue with Khartoum demanding a fee to use its infrastructure which Juba rejected. In lieu of the payment Khartoum confiscated $815 million of South Sudan’s oil, leading Juba to halt oil production.

Dau said the delay was due to damage to fighting between Juba and Khartoum’s forces in April.

He accused Sudan of deliberately bombing oil producing areas earlier this year in order to cause damage to the facilities. “Some of the facilities which were affected by the aerial bombardments by the government of Sudan need to be repaired first. This needs time," he added.

Oil analysts have also pointed out that the haste with which the production was stopped and the density of southern crude will also delay making the oil fields operational again.

Dau expects the nations to sign a final agreement to pave the way for resumption of oil production and exports through pipelines which run through Sudanese territory, after the resumption of negotiations between the two sides by 22 September.

An agreement was signed by both sides in August. A senior Sudanese official told Sudan Tribune at the time that Juba will export its oil for US$25 per barrel. The South Sudan government said they will pay US$9.48 for every barrel in addition to a US$3 billion lump sum.

“Resumption of oil production and export through Sudan is contingent on the signing of the final agreement. We expect that talks be concluded by the September 22 as required by African Union Roadmap and the United Nation Security Council resolution number 2046,” he explained.

He said the delegation representing his country at the talks is prepared to resume negotiations at any time, should the mediating team extend an invitation to the two sides to return to the venue.

Negotiations were due to recommence in Addis Ababa at the end of August but have been put back until after the funeral of Ethiopia’s late leader Meles Zenawi on September 2 after he died on 20 August.

(ST)

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  • 31 August 2012 07:22, by George Bol

    Oil resumption need to be examine very critically because the North are best known for dishonoring what has been agreed.For instance, they are saying now that the price per barrel is $ 25. Can you belief them? They will steal our oil again,they should return the stolen billions before making business with them.I supported we should stay away from them until the Abyei and borders finished.

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    • 31 August 2012 07:58, by Chol

      The agreement should not about $ 25.00 $ 9.00 or whatever the number is per barrel. The agreement should be what percent per barrel is it as a transit fee. If you just say, I need $ 25.00 per barrel transit fee; what if the price per barrel in the world market dropped to $ 25.00? Are we going to sell it and give it all to Sudan?

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      • 31 August 2012 07:59, by Chol

        The agreement should be 5% of the price of a barrel. If the price per barrel is $ 200.00 per barrel in the world market, then Sudan should get $ 10.00 as transit fee, which is 5% of $ 200. If the price dropped to $ 25.00 per barrel in the stock market, then it’s 5% of $ 25.00 as transit fee. The transit fee agreement should be in a percentage form.

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        • 31 August 2012 08:20, by Chol

          The decision is not made yet by both houses of parliament in South Sudan for oil to go through Sudan. If it’s made, we are not going to pay for the pipeline; we will be paying for oil going through the land; because the pipeline was bought and built using South Sudan money. If Sudan had any reason to believe it’s their pipeline; they should prove it.

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          • 31 August 2012 10:56, by Luethee Ngong Anyoun

            Dear Minister Dau,
            welcopy and noted but i din,t understand why always things change like now my worry is this the only six Months to one year will go up to two years , please now we need you to speak the truth we are tied of poor economy in South Sudan .
            May God bless the poor people of south sudan to get up and improve the living standard.
            Abraham 5

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    • 31 August 2012 08:21, by Robot

      Oil resumption needs one year to flow again, one thing that the GOSS should know is the delaying tactics the NCP are playing, they were enthusiastic that the govt will collapse in August, i hope the govt is watching keenly on that. reason behind is like now they are engaging the SPLA/M with Yauyau.

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    • 31 August 2012 08:35, by Kurnyeil The Junior

      Let the Dinka oil came throught or they will die with hungar,

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  • 31 August 2012 07:28, by Madina Tonj

    Well, the world does not work in hurry so why not taking more times to make sure it has been resume correctly. There is also a game change from Khartoum regime, the NCP told their leader Omar al Bashir not to sign unless security deal has reach while, this issue was left with others unreslovable and I think there is no good news coming from Khartoum but yes, GOSS need to make sure it is done prope

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    • 31 August 2012 08:34, by panchol

      We don’t even want our oil to follow through Sudan, but we like to pump our waste products instead.
      God give us Oil and must is it more wisely.

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    • 1 September 2012 15:56, by Gen.Quack

      Even the villagers have added their odours mouth in the affairs of intellectual and educated p.ple shame on u, i just know u r the warap capital claimer dinka like those of dinka bor who know only the fight of refugees in camp, shame ön all dinkas like tonj n bor.u wil al perish as long as u r militias.

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  • 31 August 2012 08:59, by malieng

    General Kurnyeil Junior- greatman what do you know about Sudan, I can assure you today that if you don’t know, Sudan mean Dinka in ma langauge, it entail that ’Suol-Dan’ and you try to remove (ol) and say Sudan which cannot and will not be happen to be accept by Mony-Jang. Get to know the words ’Mony-Jang’.

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  • 31 August 2012 09:33, by Modi Lo Laja

    Dear All,
    The Predictors are those in Government. This comes just to make stability to the whole people of South Sudan that their is progress a head. These are the thieves who had 4 Billion in the houses now and in the foreign banks.
    Let’s await for and I hope most of those thieves have shortages due to Oil shutdown. May God help them though they haven’t in their houses.
    Thanks,
    Modi

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  • 31 August 2012 09:59, by mohamed mahgoub

    This is real bad news for the NCP criminals in kh. they are in desperate need for any penny coz they went from inflation to deflation 6 months such a long way

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  • 31 August 2012 10:29, by Thorbanat

    The Government of the Republic of South Sudan should embark on the construction of LAMSSEP while exporting oil via Khartoum for while. I wonder why the visibility study is taking long I thought it has been completed by Toyota Nsumi for long time and the Japanese are waiting for an OK from GOSS to jump-start the project since Japanese International Development Bank had guaranteed the funding.

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    • 31 August 2012 12:10, by Nibs

      ST and Reporter are bias.they omitted some very essential statements said by the minister. This is what the minister said:the agreement between the two sudans is vital for only 3 years,it will not affect the construction of P/L throught either lamu or Djibouti via Ethiopia....cont..

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      • 31 August 2012 12:26, by Nibs

        ..this is not to punish khartoum,it is bcoz the are not reliable partners.moreover the p/l in sudan has a maximiun capacity of 350,000 per barrel,south sudan want to boost production bcoz of recent discovery of huge reserves and new oil fields in jonglei.As such,construction of p/l is a must. If you think i’m making it up,consulate various reliable sources.ST as become an "agent".

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    • 31 August 2012 12:37, by Nibs

      @Thor,
      bro,the minister said it yesterday that they are conducting both feasibility studies simultanously(Lamu and Djibouti via Ethiopia)and it will take at most 6 months.From these two routes the will chose one that is more viable.Funds are there,construction companies are eager to embark on it quickly.no worries it is a matter of time.

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  • 31 August 2012 12:19, by thok chuni yok

    To have your own is to protect, please go head your people are there.

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  • 31 August 2012 14:02, by Northern Sudanese

    every time asylum seekers crying oil oil oil , now who is over here ’’hoping’’ to export oil through sudan? the fee is $26 dollar per barrel. the agreement was signed and will be implemented when we in north make sure that da cowboy won’t do anything stupid on the border.

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    • 31 August 2012 16:26, by South South

      Northern Sudanese Dumb,
      Close your dirty mouth now, who is crying about oil penguin ? Isn’t it people with laundry in their head who stop eating meat after South Sudan stop oil flowing. Just wash your ass with water so that your shit Allah can accept your prayers. Low dirty, dumb and wicked.

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      • 31 August 2012 20:16, by Northern Sudanese

        South Shit
        ok we stopped eating meat for some time, did you forget those in south who can’t find anything to eat at all after closing the border and shutting the oil? according to the UN more than halve the people in south are food insecure.
        at least we wash our asses, wbu do you bother to wash it or do you have something to wash with? lol no toilet paper or clean water in south lol!

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    • 31 August 2012 20:30, by Nibs

      Where did you get $26 per barrel? are you being plain stupid or something else.frankly you are the most moron in this forum.

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  • 31 August 2012 20:28, by never

    khartoum is taking disadvantage of this situation.now khrtm is going to steal more oil than the one we were accused them off. and if it happen, are we going shut down a oil again. places like panthou and abyei are going to fall on the other side.Juba has fail us. Bhar el ghazel with their corruption. they have chose to steal money first instead of buying weapons to protect the border.

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    • 31 August 2012 22:02, by Hardball

      There reason why Sudan was stealing oil was due to the fact that, no one in the South knew many barrels were going through the pipeline. If you know exactly you pumped 200,000 barrels that day, on the way they cannot steal 20,000 barrels on the way, because at the destination, you’ll know 20,000 is missing!

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  • 31 August 2012 21:04, by JohnGarangFreedom

    I hope nothing will change again from Nothern Sudanese who are always changes positions ever now and then.

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  • 1 September 2012 07:05, by Nguetbuny de Luelpiny

    I lost trust with Arab settlers since childhood,even to make business with them need careful. what go what come;i do not trust the opening of North Pipe line. South sudan will be so foolish enough to open it through north;while Aliny,Kordufan,blue Nile and Darfur still occupy by NIF. What do Goss think about benefits NIF going to use with oil money? Southerners will not be happy for opening oils

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    • 1 September 2012 22:01, by sudani ana

      Nguetbuny de Luelpiny
      What planet are you on? Coz it’s not earth. Darfur Blue Nile Heglig and Kordufan uner occupation by Sudan? Stop smoking that green shit.

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      • 2 September 2012 21:14, by Nguetbuny de Luelpiny

        Hi invader pretender sudani ana,you are not sudan, I am the real sudan is me writing to you. I mean Arab north settlers are slave on their brains. Darfur, Kordufan and Blue are still pure Sudanese African. Terrorises days are numbers,it is due to Kiir and Riek leadership weakness. Next must be powerful enough to knock every evil Arab settlers out in North mainland.
        SPLA waaoyee!
        Long live SPLA!

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