South Sudan Offers Nile, Dar Blend Crude Cargoes for February
7 min readBy Ramsey Al-Rikabi – Jan 13, 2012
The Republic of South Sudan offered to sell 4.7 million barrels of Dar Blend and 1.6 million barrels of Nile Blend crude for loading in February, according to a tender document obtained by Bloomberg News.
Details of the sale are as follows:
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Crude: Dar Blend (Sudan)
Quantity: 4.7 million barrels
Loading: Feb. 4-5 - 600,000 barrels
Feb. 7 - 300,000
Feb. 8-9 - 600,000
Feb. 11-13 - 1 million
Feb. 18-19 - 600,000
Feb. 21-23 - 1 million
Feb. 24-25 - 600,000
Pricing: Dated Brent
Seller: Ministry of Petroleum and Mining, Republic
of South Sudan
Loading port: Bashayer Marine Terminal, Sudan
Closing: Jan.13
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Crude: Nile Blend (Sudan)
Quantity: 1.6 million barrels
Loading: Feb. 22-24 - 1 million barrels
Feb. 26-28 - 600,000 bbl
Pricing: Indonesian Crude Price (ICP) Minas
Seller: Ministry of Petroleum and Mining, Republic
of South Sudan
Loading port: Bashayer Marine Terminal, Sudan
Closing: Jan. 13
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To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski atakwiatkowsk2@bloomberg.net
Sudan a Thief of South Oil, Sabotages Shipping – Minister
Dhieu Williams
13 January 2012
Juba — The Minister of Petroleum and Mining, Stephen Dhieu Dau Tuesday accused the Khartoum government of ships blockage and stealing of the crude of South Sudan by directing foreign oil companies to divert the crude oil entitlement for December to Khartoum and El Obied refineries.
The Minister stated this to the journalists at the weekly press briefing in Juba. He in strong words condemned the decision taken by Sudan government without informing the operators and the government of South Sudan and said that this action would create more problem to Sudan than resolving their financial crisis. The Minister said that Sudan is currently preventing two ships from leaving Port Sudan carrying 1.
6 million barrels of Dar blend from South Sudan and preventing one additional vessel to load 0.6 barrel of south Dar blend. Dau further said Khartoum also blocked two ships from entering Port Sudan to take possession of 1.2 million barrels of Nile blend purchase from South Sudan. He however revealed to the journalists that his ministry is due to sign an agreement this month with the operating companies that will visit the country soon.
Dau, further said that Khartoum has ordered 550,000 barrels of South Sudan oil’s Dar blend’s crude oil entitlement for last December and diverted it to buyers. He also accused Sudan of constructing a new tie-in pipeline between the Petrodar pipeline and Khartoum refineries designed to permanently divert 13 percent of the Dar blend of South Sudan.
The Minister said the new pipeline under construction by Khartoum is expected to complete before fifteenth of this month. He added that his Ministry had invited China to take part in the talks with them and that South Sudan will not allow its resources to be interfered with by Khartoum and threatened legal action if the blockade continues. The Minister warned that the South Sudan government will, if necessary take legal actions against anyone who purchases Sudan’s crude stolen from the South. “Any diversion of oil is nothing less than theft and preventing loaded ships with South Sudan crude oil from leaving port is unlawful act and a violation of international laws and norms,” said Dau.Dau further said that one ship carrying 1 million barrels of southern oil was blocked from leaving Port Sudan on Dec. 31, while a second carrying 600,000 barrels was stopped this January. “They want to steal, to loot the resources of South Sudan,” reiterated the Minister.
After South independence from Sudan it gained control of nearly three quarters of the formerly unified country’s oil fields, which produce around 500,000 barrels per day.South Sudan revealed that last week Khartoum rejected 2.6 billion dollars offered by it for free in return for friendship and cooperation but Sudan continues to steal its oil. But the Petroleum Minister said in the recent talks through African Union, South Sudan proposed to pay Sudan 74 cent per barrel, offer rejected by Khartoum which opted to maintain to charge South Sudan with 36 dollars per barrel something rejected too by the world’s newest nation describing it robbery which had never happened elsewhere in the world.
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Gov’t Warns of ‘Huge’ Economic Impact If Khartoum Blocks Oil Export
Ngor Arol Garang
10 January 2012
Juba — South Sudan’s oil minister said Tuesday that north Sudan was siphoning off his country’s oil, threatening to instigate legal proceedings against any country or company involved in buying the allegedly stolen crude.
Since landlocked South Sudan seceded in July 2011 – taking with it 75% of the Sudan’s known oil wealth – the two countries have failed to negotiate a fee for the South to export its oil using north Sudan’s infrastructure.
Last week the South Sudanese government threatened to sue Khartoum over its decision to unilaterally impose monthly charges on its crude oil transported through its pipelines.
“Rather than view the New Year as an opportunity for renewed cooperation, the government of Sudan unilaterally decided to impose economic sanction[s] by blocking exporting our crude and stealing our oil”, Stephen Dhieu Dau, Minister of Petroleum and Mining told journalists in Juba.
Dau accused of north Sudan over five issues related to the export of its crude oil:
ordering foreign oil companies to divert South Sudan’s crude oil entitlement for December 2011 into refineries in Khartoum and El-Obeid.
diverting South Sudan’s monthly production of 550,000 barrels for December to buyers of its own entitlement.
beginning the construction of a new pipeline to permanently divert 13% of what he called “Dar Blend”.
preventing two ships carrying 1.6 million barrels of crude oil belonging to South Sudan, as well as preventing one additional vessel from leaving Port Sudan.
and prevented two other ships from entering the port to take possession of 1.2 million barrels of Nile Blend Crude purchased from South Sudan by international buyers.
South Sudan’s oil minister said he denounced the unilateral acts, and describing the diversion of its crude oil without its consent as nothing less than” theft”. Dau said that preventing loaded ships from leaving Port Sudan was “unlawful” constituting a clear violation of “international laws” and “norms”.
He said Sudan would take responsibility for all penalties and damages resulting from the “theft” and delays in the shipping schedules.
South Sudan is considering building a pipeline to Kenya to bypass having to use north Sudan’s infrastructure but this is years away from being achieved. In the six months since South Sudan became independent in July 2011 the two countries have failed to reach agreement on oil, assets, debt, citizenship and how to demarcate the poorly defined tense new international border.
The two countries are due to resume bilateral talks this month. The Sudanese president Omer Hassan al-Bashir on 4 January that South Sudan was not negotiating in good faith and accused Juba of not paying fees to use it facilities.
Most of the oil fields lie near the border. South has claimed Khartoum is arming South Sudanese rebel groups in order to destabilise the new country and retake control of Unity State’s oil fields.
Khartoum denies this and counters that Juba aids rebels in its territory. South Sudan also denies this and has accused Sudan’s Armed Forces of bombing South Sudanese territory in recent months.
Macar Aciek Ader, an undersecretary at South Sudan’s oil ministry told the press briefing in Juba the world’s newest country would incur “huge economic” damage if Khartoum continued its stance. South Sudan is one of the poorest regions in the world, with oil accounting for around 98% of the government’s annual budget.
“I really do not know what would happen if Khartoum continues to behave like this. I do not know how much loss it would be, but I think our country would incur huge economic impact”, Ader said.
Minister Dau warned that countries or companies who purchase oil from Khartoum that was “stolen from South Sudan” would face legal action.
“The Government of Sudan and all those that benefit from such illegal acquisitions will find no refuge from South Sudan’s legal authorities and will enjoy no future business with the Government of South Sudan,” the minister warned.
He denied reports alleging that his country was not paying Khartoum charges for using its oil infrastructure including transport and processing fees.
“It is disappointing to mention that Khartoum continues to deny that South Sudan pays charges for the use of its infrastructures. South Sudan is already being charged and is paying pipeline operators significant fees to produce and transport it[s] oil through Sudan but Khartoum remains spreading lies that South Sudan is not paying for the use of its infrastructure”, the minister said.
Barnaba Marial Benjamin, South Sudan’s minister of information, at the same briefing warned Khartoum to treat the world’s newest nation like an independent state with its own territorial sovereignty and resources. He repeated the allegation that north Sudan’s army intended to invade his country because of oil, however, he said that South Sudan’s military (SPLA) would not let this happen.
“Khartoum thinks that it can invade South Sudan like what Iraq did to Kuwait in 1990. Don’t we know what happened to Iraq? Where is Saddam Hussein now”, minister Marial said.
Marial argued the fact that his country was willing to offer financial assistance of 2.6 billion cash and to write off 2.8 billion of debts and arrears, he said Khartoum owes the people of South Sudan, should be seen as an indication of a country willing to forge better relations with her neighbour.
Additional reporting by Julius N. Uma
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