Home | News    Monday 19 November 2012

Resumption of South Sudan oil production "rescheduled" over security issues


November 18, 2012 (JUBA) - South Sudan has rescheduled plans to resume oil production and exports out of neighbouring Sudan, in order to reach an understanding with Khartoum over security issues, the head of the state-owned Nile Petroleum Corporation (NilePet), Paul Adong, said Sunday.

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South Sudanese security forces wait outside the control room of the Petrodar oil facility in Paloich, Upper Nile (AFP)

South Sudan’s President Salva Kiir declared on 14 November that his country’s oil production will be restarted this week, nearly a year after suspending exports through Sudan over a dispute with Khartoum on transit fees for exporting the crude through the north’s pipelines.

Adong, who did not give a revised date, said preparations to resume pumping Southern crude through Sudan are continuing and have not been suspended despite the postponement. He said that discussions over security arrangements regarding establishing a demilitarised buffer zone and alleged backing of rebel groups either side of the border were ongoing.

In September the two sides signed a Cooperation Agreement, which will see South Sudan 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.

The flagging economies of both nations, since South Sudan separated last year, have made a deal to resolve the oil dispute, which began in January, crucial for the finances of both nations.

South Sudan relied on oil revenues for 98% of its income and Sudan had budgeted for transit fees of over $30 per barrel in its annual budget. South Sudan’s pre-shutdown oil production was approximately 350,000 barrels per day (bpd).

However, Sudan has insisted that border security arrangements agreed in the September deal must be finalised before oil exports can resume.

Meetings earlier this month in Juba, chaired by the defense ministers of the two countries to discuss the establishment of the demilitarized border buffer zone and the ways to end cross border attacks and rebel presence on both sides of border, ended without progress.

Speaking to the Sudanese parliament on 14 November after his return to Khartoum, Sudanese defense minister Abdel-Rahim Mohamed Hussein blamed the South Sudan government for the failure to implement the deal.

He accused Juba of rejecting his attempts to place the issue of South Sudan’s alleged backing of rebels in South Sudan on the meeting’s agenda and said his counterpart had refused to hand over the names of northern citizens seeking to join the Southern army (SPLA).

NilePet’s Adong told Sudan Tribune that Khartoum had begun to include “completely new demands" in the security deal which his country “did not make a commitment” to during negotiations held in the Ethiopian capital of Addis Ababa.

On 14 November the Sudanese oil minister Awad al-Jaz told a visiting South Sudanese delegation led by the Undersecretary of South Sudan’s oil ministry, Machar Aciek Ader Nyang, that implementing the oil accord was contingent upon finalizing a deal on security arrangements.

The two sides discussed technical details for restarting oil flow in a closed session but Al-Jaz stressed the importance of security to provide a conducive environment for oil production.

NilePet’s Adong, who was part of a South Sudanese delegation that visited Khartoum last week said that the resumption of oil production has "been rescheduled because [the] Sudanese government wants security arrangements to be concluded first."

In South Kordofan and Blue Nile states, which both border South Sudan, rebels - who fought with the SPLA during the civil that resulted in country’s partition - have been fighting the Sudanese government since last year.

The SPLA-North claim to control 40% of the border and South Sudan has argued that they should be included in the security arrangements. This and Juba’s offer to mediate between its war-time allies and the Sudanese government has been given short shrift in Khartoum.

“The reason for rescheduling resumption date for production and export through Sudanese territory is that [the] Sudanese government link[s] the full implementation of the nine agreements with security arrangements. Sudan wants disengagement of SPLM-North and South Sudan to be included. This demand is not provided for in the nine agreements”; said Adong.

He said that security and oil resumption discussions between Juba and Khartoum are ongoing.


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  • 19 November 2012 06:10, by Akol Liai Mager

    Resources of South better locked-down than flowing to unsafe destinations.

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    • 19 November 2012 07:33, by okucu pa lotinokwan

      Dear All
      We are not after the flowing of the crude oil via the Sudan but we are after the construction of the refinery factory, in Upper Nile State which has already started by the American company PET.If completed will rescue the South Sudanese citizen from many things.It will also easy the constuction of the Pipeline to Kenya or the Ethiopia

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      • 19 November 2012 11:41, by Paul Ongee

        Khartoum interprets the "cooperation agreement" in a different fashion. Khartoum expects Juba to declare that "I will tell SPLM-N not to disrupt the oil production and its flow to Port Sudan but also stop shelling Kadugli or military installation of SAF" to prove that I support SPLM-N.

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        • 19 November 2012 11:42, by Paul Ongee

          SPLM-N is operating in northern territory under which Khartoum can deal with it militarily as it dreams or politically as it rejects. Why Juba should be involved in that senseless thinking? To Khartoum any agreement signed conditionally or not it should be conditionally implemented. Khartoum will never stop creating new demands.

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    • 19 November 2012 08:15, by Mwalimu Kuol

      postponing our oil flow through the north is best decision. Let us just explore other alternatives and let call the Sudan’s pipeline a done deal.

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    • 19 November 2012 13:25, by Logic

      Regime change in Khartoum is the only viable solution to this impasse. Both countries need to cooperate because all other options for oil transportation are far fetched and lack financial support internationally.
      NCP out = better environment for cooperation. Its that simple.

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  • 19 November 2012 06:53, by Diu J.Kuek

    Since Addis Ababa agreement was been signed I was objected this because we know Sudanese mentality even though the we resume oil production yet the lasting peace to come this a fact South Sudan Government should see another alternative way otherwise to work for Sudan as President of Chand did to go and hunting for Sudanese rebels in their own territories that is Sudan want its the same theory.

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    • 19 November 2012 07:13, by okucu pa lotinokwan

      This is very smart lesson to our govt in Juba,to get another alternative than transporting this crude oil via the sudan to the main world market,it is agood lesson.the money been corrupted by our officials would have done some thing in constructing the pipeline to Kenya or Ethiopia.

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  • 19 November 2012 07:01, by Jalaby

    Well, Jonobean breached the latest Addis Ababa agreement even before its ink becomes dry!! what do you really expect from thieves? They sidestepped what agreed before on ending their relationship with SPLA-N and dismembering division 9 & 10 and cut off all ties!
    I’m very sure thieves are so sad because nothing to steal so far after oil production rescheduling!

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    • 19 November 2012 07:18, by okucu pa lotinokwan

      Jalaby you are still alive i thought you are among the victims of South Kordofan’s heavy shelling,welcome back with your nonesense words.

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      • 19 November 2012 19:22, by Northern Sudanese

        okucu pa lotinokwan
        and i thought that you were locked up in US prisons with your other dark , red eyed brothers loool

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    • 19 November 2012 07:21, by Diu J.Kuek

      Mr Jalaby please know that this oil its our natural reserve can be there whenever we need it does n’t matter when it be resume and where it be exporting our people fought for the land not for oil you Sudanese people as you want you will never hear that South Sudanese betraying their brothers In S Kordofan and S Blue Nile anyway how is thing going now in Gaza with your brothers Hamas its so ugly.

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    • 19 November 2012 07:24, by okucu pa lotinokwan

      Jalaby you are still alive i thought you are among the victims of South Kordofan’s heavy shelling,welcome back with your nonesense ideas.

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    • 19 November 2012 07:27, by George Bol

      you are nyamnyam pretender. Guys you have known that Jallabi is from South Sudan. But his coward make hike praise the enemy.

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    • 19 November 2012 07:42, by Chol

      Jalaby, if South Sudan has any relationship with SPLA-N; then why should South-Sudan worry about their oil getting sabotage by SPLA-N? If you lost control of your country; you don’t need to blame it on someone else! Our relation with Sudan is not going to continue in the near future because you made Sudan a country that sponsor terror; you’re not safer now from an Israeli strikes any time!

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    • 19 November 2012 09:30, by Ruach

      Gaay Jallabi:You just wait for your untimely deaths from Israeli!Wash your dirty and rotten mouth full of tobacco(sawod).

      repondre message

    • 19 November 2012 10:56, by Young Lotuko

      JalabY, you should not worry about us, we are not a threat to your COuntry..Just watch what Israel is going to do to your Country next..

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    • 19 November 2012 12:32, by panchol

      South Sudan will not hand over SPLM/N Leaders to NCP Thugs lol!If it is matter of our crude oil to flow through your country then this is not the solution lol! lol! lol!lol!lol!
      South Sudan will pump it crude oil using alternative pipelines through Lamu and Djbudi and this will take only two years to work efficiently.

      repondre message

    • 19 November 2012 12:36, by panchol

      South Sudan will not hand over SPLM/N Leaders to NCP Thugs lol!If it is matter of our crude oil to flow through your country then this is not the solution lol! lol! lol!lol!lol!
      South Sudan will pump it crude oil using alternative pipelines through Lamu and Djbudi and this will take only two years to work efficiently.

      repondre message

  • 19 November 2012 07:13, by George Bol

    Khartoum are deformed which me hard to reform. "Too Many agreement dishonored". For me we are wasting time with Khartoum! they are people who just listen through their eyes not ears.we better stay like before without oil. We should be finding another way of surving like in Agriculture and leave oil alone until we clear Abyei, Panthou, Kejikingi from terrors

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  • 19 November 2012 07:16, by Madiak

    Bravo to Mr Salva Kiir for turning the oil resumption celebrations to refiner open celebrations in Thiang Rial let them Fuck up their oil pipe line

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  • 19 November 2012 07:20, by wang

    South shouldn’t be worry too much about that fake agreement with those thugs in Khartoum,Let us play this game

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  • 19 November 2012 07:39, by Son of Ngundeng

    Dear all south sudanese, why we can begg human like us? while they are the people whose benefit from our resources, we were living for 21 years did we live on the oil?let us leave the Arab, i believed they will be suffering and they will come alone.

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  • 19 November 2012 09:04, by Padiet Deng Alony

    why are we transporting agian our crude oil throught thief pipeline line. khartoum stick on security so that later they will exploite their pipeline and start say in the future you see South Sudan that is what we say security is first. where is the stolen oil before,let me hope it will be the final mistake South Sudan will never forget again.

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  • 19 November 2012 10:59, by Kikiji longiro

    South sudanese can,t leave these pipelines simple to these Egyptian childern. These people don,t have 100% rights to own anything in Sudan. We are leaving them because they are made salves of religion but these pipeline was built because of the South Sudanese petrol.DO YOU THINK AFTER REMOVING PANTHOU IN THE NEAR DEMARCATION,WHAT WILL THEY CARRY WITH THESE PIPE TO PORT SUDAN?

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    • 19 November 2012 16:42, by Peacocktail

      Sudan must be Aware that "The price of non-implementation must
      be made much higher than the price of implementation – So there must be
      found ways of making the price of not implementing the peace agreement
      prohibitively if NCP fail, then removal is only option at hand by UNSC-my best friend FRANCE,Khartuom should not force South Sudan to disengaged SPLA N,Surrender them for what? shame on them,

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  • 19 November 2012 11:07, by Kikiji longiro

    Ask your friend Jalaby to look after their jalabys,where did they really bring this model of Saudia from?
    Any Country wearing Jalaby doesn,t have it,s own tradition because a salve really doesn,t it,s own traditional dresses.

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  • 19 November 2012 14:14, by Makunon

    If oil doesn’t flow through China pipelines to Portsudan then Bashir will be soon handover to ICC for sure and that is why they run to media to complain, No oil running NO veto from China and wait for China reaction. Israel infront China behind and SS at right.

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    • 19 November 2012 19:46, by mudfish

      stopping of oil flow was agood decision and also resumpion of oil production is agood idea,but S Sudan have to do something not to defence on Sudan pipeline.stop corpation and loding oil money by taking ur children outside the country and stay in hotel,it is time for development not for pocket to mouth.otherwise independence will be useless.

      repondre message

  • 21 May 2013 04:37, by ccocoo

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