Juba turns off the oil and turns up the pressure on Khartoum
The South goes for sovereignty
Juba turns off the oil and turns up the pressure in its fraught negotiations with Khartoum over oil, cash, security and citizenship
Few outside the Juba government had expected it to start shutting down oil production on 22 January. Warnings from the Government of South Sudan had been widely seen as brinkmanship. The National Congress Party (NCP), plus African Union, Chinese and Western mediators, had apparently forgotten the capacity for decisiveness of the Sudan People’s Liberation Movement (SPLM), which helped it to win Independence for the South. The talks should resume on 10 February but no one expects speedy agreement. This was clear when the AU representative, South African ex-President Thabo Mbeki, announced on 31 January that they would cover several outstanding issues from the 2005 Comprehensive Peace Agreement since ‘the interim transitional period ends at the end of March’. This broadening of the agenda is a tactical victory for the GOSS, which for the first time has the NCP literally over a barrel.
This is costing Khartoum dear but it also knows that Juba loses 98% of revenue, with no clear alternative. The NCP’s strength is military and it is beating the war drums. Second Vice-President El Haj Adam Yusuf said on 25 January that the army had surrounded SPLM-North rebels in Blue Nile and South Kordofan and ‘Juba is not far’. Until November, he was senior in Hassan Abdullah el Turabi’s Popular Congress Party and the NCP accused him of conspiracy in 2007. His threat has hardened Southern resolve and highlights the chasm between the two governments.
‘This is not about oil, it’s about politics!’ one senior Northern oppositionist told Africa Confidential. This goes even beyond the CPA’s ‘unfinished business’ to the heart of North-South relations on one hand and relations between the regime and the Sudanese people, North and South, on the other. ‘They [the NCP] have convinced themselves that the Independence of the South is just a formality,’ the oppositionist said. Khartoum has warned foreign journalists and rabidly anti-Southern propaganda has appeared even in liberal media, such as Al Ayyam.
This all suggests two broad scenarios: the talks focus on technical and financial issues and reach agreement, at least on oil; or they break down and South Sudan seeks new outlets while Sudan’s economy nosedives. Either way, a new Southern pipeline looks likely (see Box, Who pays the pipeline). The bigger unknown is whether the NCP will apply its theoretical military superiority.
Who will blink first?
It doesn’t look as if the GOSS will blink first and much now depends on how the NCP assesses the economic crisis and its political impact. It was demanding up to US$38 a barrel from Juba in transit fees (the international rate is $0.40-$1.00) and confiscated already loaded ships at Port Sudan. It did not seem to be seeking compromise. President Salva Kiir Mayardit accused it of ‘looting’ $815 mn. in Southern oil, some through a new, secret, spur pipeline, and of underreporting output for years. As the talks ended, Juba had offered $1.7 billion to Khartoum and transit fees of $0.63-0.69 a barrel. Khartoum demanded $5.4 bn. cash and $3 a barrel.
What has really upset Southerners is that Khartoum has dealt with Juba in the traditional way. President Omer Hassan Ahmed el Beshir called it ‘naive’ and Foreign Minister Ali Ahmed Kurti, ‘childish’. This is seen as a calculated insult to the new sovereignty for which Southerners have paid so dearly. ‘It’s OUR oil’, said one Southern analyst, ‘and it’s a separate country. They can’t demand things.’
Interested governments follow the oil crisis and the war in Blue Nile and Kordofan with anxiety and a steadfast public even-handedness which dismays Southerners and also Northerners, who regularly ask why Libyans rebelling against a brutal dictatorship get Western and Arab military support while their Sudanese counterparts receive only criticism.
On the oil issue, the West is privately more sympathetic to the South, says an SPLM source. However, this may not extend to bailing out a government which has stopped pumping approximately 315,000 barrels per day. ‘Resolution is imperative if the GOSS is to have the wherewithal to be a development partner for the international community,’ warned a senior British official this week.
Chinese puzzle
China, the biggest producer and purchaser of Sudanese oil, is also worried and dispatched the head of the Communist Party Central Committee’s International Department, Wang Jiarui, to Juba and Khartoum. ‘The shutdown raises the political instability of an already challenging operating environment, pushing Chinese and other Asian national oil companies [Malaysian and Indian] to reconsider the importance of the two Sudans in their expanding international portfolios,’ Luke Patey, co-editor of a new book, Sudan Looks East, told AC. China gets only 5-6% of its oil from the Sudans but fears sanctions on major supplier Iran.
The kidnapping of 25 Chinese workers in Egypt (now released) and the capture of 29 others by the SPLM-N during fighting with Sudan’s army in South Kordofan have triggered a public debate in China on workers’ protection, at least abroad. The 25 were building a road near Talodi (to facilitate gold mining by French interests, say Nuba sources). Beijing even deployed Vice-Foreign Minister Xie Hangsheng on 31 January to reprimand Sudanese Chargé Omer Eissa Ahmed. Meanwhile, though, China was trying to negotiate the workers’ safe passage with the SPLM-N, thereby opening relations with the opposition. The whole situation challenges Beijing’s huge new investment in unstable countries and its policy of ‘non-interference’. China analyst Daniel Large said: ‘It’s a very elastic policy – very hard to break.’ Beijing will not abandon Khartoum (it’s just promised a $200 million loan) or Juba. Its biggest decision may be whether to help build a Southern pipeline.
General Salva Kiir’s team knows that challenging Khartoum is the most popular move it can make. People came out on the streets nationwide to support the oil shutdown but there is also concern about what comes next. Hopes of health and education remain high.
This was no knee-jerk shutdown, say insiders, and the GOSS has long planned for the worst. Cabinet Affairs Minister Deng Alor Kuol spoke of a five-year cushion and other sources talk of a sovereign wealth fund banked in Kenya and Uganda. One key man in the Ethiopia talks has been Sayed Mohamed el Hassan el Khatib, an NCP trusty, ex-London diplomat and CPA negotiator. He also heads the NCP’s Centre for Strategic Studies: some rethinking may be required there as it seems Khartoum underestimated GOSS strategising. As both parties prepare for the next bout of talks, Juba faces the tough task of wresting substantive concessions from Khartoum’s veteran tacticians. There may be a messy compromise but that’s far from guaranteed.
Copyright © Africa Confidential 2012
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Sudan: President Bashir – the Belligerent Eye of a Perfect Storm
6 February 2012
Analysis
The vultures are circling around Sudan’s President Omar Al-Bashir. He’s faced problems before, of course, but a perfect storm of resistance and discontent brewing in and out of his country is the most serious threat to his rule yet.
Simon Allison takes the liberty – not that such liberty’s are usually allowed in Bashir’s Sudan – of explaining to the Sudanese strongman the precariousness of his position, and second-guessing his solutions.
For three decades, there has been one man at the centre of Sudanese politics. As rebels have come and gone (some co-opted, some killed), as cabinets have been reshuffled, as former friends have been made enemies and enemies friends, as international envoys have changed faces and messages, through famine and civil war and genocide and secession, there has been a single presence in the eye of the storm that has been Sudan’s last few decades. Take a bow, President Omar Al-Bashir. The least we can do is recognise your tenacity, holding on when many around you couldn’t.
But we won’t applaud you for it. Yours hasn’t exactly been a stellar rule, characterised by divisive and alienating policies, a frequent resorting to extreme violence and the elimination (often literally) of any sign of dissent. The International Criminal Court wants to try you for war crimes, in relation to the hundreds of thousands of people that were killed in Darfur.
Some call it a genocide, and all evidence points to your direct involvement. This, perhaps, is why you’re still around 23 years after you seized power in that military coup: you’re simply more ruthless than anybody else.
But unfortunately for you and the clique of generals and businessmen that feed off your position (and help sustain it), things are beginning to unravel faster than you are able to deal with them.
It began with the breakaway of the south last year, a compromise that circumstances (and, some argue, a rare political miscalculation) forced upon you. Since then, it’s all been going wrong. Most importantly, the south took with them most of the combined Sudan’s oil wealth
Khartoum has enough oil in its control to meet domestic demand, but that’s not really what the oil is about; it’s about extra cash to sweeten your friends and manipulate your enemies. Thanks to the secession, your regime is bleeding around $32-million per day in lost oil revenue.
That figure is even higher now that the south has turned off the taps completely, refusing to let its oil go through the pipeline that runs to Port Sudan. Using this pipeline means paying transit fees to Khartoum, and no one can agree on what they should be: you are demanding exhorbitant payments, but the south’s figure is just as unrealistic. It didn’t help when you unilaterally seized over US$200-million of the South’s oil as ‘reparation’ for the unpaid transit fees; in response, Juba shut down all oil production and announced plans to build a new pipeline through Kenya.
Surely they’re bluffing, you must be thinking; they can’t afford to have no oil money whatsoever for the next year. But their government is poor, knowing how to operate on straitened budgets.
They’ve also got a vast reservoir of goodwill to call upon after leading the fight against Khartoum, and they’ve got some powerful international backers. Maybe, just maybe, they’re thinking about sitting tight on the pumps for the next year; this was certainly the impression given at the recent African Union summit, where sideline negotiations with the south went absolutely nowhere.
Then there’s the rebel problem. Your government has never had many genuine fans, but popular opposition to it is reaching unprecedented levels. There’s Darfur, of course; not even a genocide could solve that tricky little problem.
There are still a few armed groups fighting against your government. It’s a low-level insurgency, but requires troops and time and money to deal with.
And strangely enough, your biggest recent victory in this war – the killing of infuential rebel leader Khalil Ibrahim – might have made this headache even worse, as it appears to have stalled the ever-stuttering peace talks. And in the new south of the country, on the border with South Sudan, is more serious insurgency headed by a breakaway faction from South Sudan’s ruling party.
Your armed forces are going at them with everything they have, including the old trick of indiscriminately rolling bombs out the back of old Russian transport planes, but so far have made little dent.
In fact, these rebels feel so confident, they recently kidnapped 29 Chinese workers from a construction site; a huge embarrasment for you given that China is your closest and most powerful ally. You don’t want to make life in Sudan difficult for them, but you are powerless to solve this problem – so much so that China eventually went begging to South Sudan for help. Worse, these new southern rebels have teamed up with some rebel groups from Darfur to create a rebel alliance against Khartoum. It’s early days yet, but this could eventually be the fulcrum for a coordinated uprising.
But that’s not too much of a worry for you, because in your heartland of Khartoum and central Sudan you remain as strong as you ever were, with a population united behind you in the knowledge that the quality of their lives (relative to their other countrymen) is dependant on you retaining power.
But wait – what’s that we hear? Yes, emanating from the very core of your support are the unmistakeable rumblings of discontent. It started with the bread protests.
Your dire financial straits made it difficult to guarantee low bread and fuel prices, a luxury to which central Sudan’s mostly compliant population have become accustomed.
Prices rose, and the people weren’t happy; you had to send in the security forces to keep the peace. Here’s an interesting historical parallel for you, just in case you missed it: popular protests against Hosni Mubarak in Egypt started with bread riots.
And look where that got him. And while we’re on the topic of bread, what about the increasingly strident warnings being issued by the international community about an impending famine in some areas on the border with South Sudan? Your officials deny the problem with a smile, but it’s almost certainly there, and will bring even more unwelcome international attention on your government – and, consequently, more international support for those looking to bring it down.
But a little domestic disturbance can be contained. The people have never been the real source of your power, which comes instead from an all too predictable direction, given your military background: the army.
The armed forces in Sudan receive a ridiculously large proportion of the budget, and in return keep your government in power. It’s a cosy relationship, in which everyone benefits except the rest of the country, and it’s stayed strong for as long as you’ve been in charge.
But even here, at the very source of your strength, there are problems. We know that a 700-strong group of army officers sent you a warning letter recently, saying that the army was simply not equipped to go to war against the south. Merits of this argument aside, such an open challenge to your authority is unprecedented.
And if the army army gets tired of you, it’s pretty much game over. Publicly, you’ve written off this threat as the work of just a few disgruntled soldiers, but inside you must be worried. Your regime is being challenged on every level, and it doesn’t look like you have the money or the support to deal with it.
So what to do? Well, you’ve been in tricky situations before, and always emerged unscathed. Your usual tactic is simple, but effective: raise the stakes. Fight fire with bigger fire. Hence your comments in an interview on Friday: “The climate now is closer to a climate of war than one of peace,” you said. “We will go to war if we are forced to go to war. If there will be war after the loss of oil, it will be a war of attrition. But it will be a war of attrition hitting them before us.” You’re talking about war with South Sudan, of course, and you went on to outline your casus belli: a fuzzy but emotive argument that the south is stealing Khartoum’s rightful share of its oil.
But this isn’t just about the oil. This is about everything: the rebels, the south, the famine, the bread protests, the economy, the army, the people. You hope that by bringing the spectre of war closer, you can solve all those problems in one: keep the army busy, create a war economy, emphasise the already existing seige mentality and ultimately keep yourself in power.
You probably don’t want to actually go to war – those insubordinate officers were right, your army is unlikely to cope – but you will if you have to. This is, after all, how you’ve solved all your previous problems: shoot first, and ignore questions later. But the questions are already being asked. What’s your answer going to be this time?.
http://allafrica.com/stories/201202061300.html
South Sudan’s Kiir unleashes barrage of attacks against Bashir
February 6, 2012 (JUBA) – The president of South Sudan Salva Kiir on Monday launched a fierce attack on his Sudanese counterpart Omer Hassan al-Bashir calling him a “thief” and urging him to surrender himself to the International Criminal Court (ICC).
- Sudanese President Omer Hassan al-Bashir (L) and South Sudan’s President Salva Kiir (R) attend the inauguration of the new African Union (AU) building in Ethiopia’s capital Addis Ababa, January 28, 2012 (Reuters)
Addressing members of the Sudan People Liberation Army (SPLA) at Bilpam military base in South Sudan’s capital of Juba, Kiir reiterated his country’s threat to sue Khartoum over oil it confiscated since late last year.
The landlocked new nation took three-quarters of the oil production, the lifeline of both economies, but needs to pay for using northern export facilities and the Red Sea port of Port Sudan.
The Sudanese government started seizing a portion of South Sudan’s oil pumped through the pipelines running in the north’s territory saying that this measure was taken after Juba failed to pay fees for exporting the crude which it said was close to $1 billion.
South Sudan responded by shutting down its entire output of 350,000 barrels a day.
Khartoum and Juba’s negotiations on the oil transit fees made little progress after the former insisted on charging $32 per barrel while the latter is pushing for a $1 fee.
Kiir revealed that he pressed East African leaders to convince Bashir not to confiscate any of South Sudan’s oil.
“We asked them to talk him out of this step but Bashir carried out what he decided so we were forced to close down oil wells because we are a sovereign nation and required to preserve our wealth,” he said.
The southern leader disclosed that while shutting down oil wells they discovered that there were more wells than were recorded during the transition to an independent state last July.
He suggested that this enabled Khartoum to “cheat” on the quantity of oil produced since the signing of the 2005 Comprehensive Peace Agreement (CPA) that ended the north-south civil war which claimed 2 million lives.
Kiir refuted Bashir’s assertions that he backed away from signing a framework agreement in Addis Ababa after initially agreeing to it before Ethiopian Prime Minister Meles Zenawi.
“When I entered the [meeting] room I found Bashir telling jokes and I spoke to him in a good spirit. Shortly afterwards they brought the [agreement] document but I informed them that the proposals contained therein are left to the heads of the [negotiation] delegations; Pagan [Amum] and Idriss Abd-el-Kader and then I left” he explained.
The SPLA commander in chief called on his soldiers not to attack northerners under any circumstances.
“Any northern guy coming here fleeing war or Bashir do not ask him. Listen very well to me; I don’t want to hear that any one of you stirred trouble with northerners staying in Juba because they themselves are sick of Bashir” Kiir said.
“Our problem is with Bashir and the gang of thieves around him,” he asserted.
‘I will send my four sons to war’
Kiir downplayed the warning made by Bashir last week that war has become a real possibility.
“If Bashir wants to fight us in Juba, we will meet him in Judat [al-Fakkar border region]” he said.
The South Sudan leader was apparently also responding to remarks made by Sudan’s 2nd vice president al-Haj Adam Youssef last month in which he said that Khartoum’s army could strike as far as Juba in pursuit of hunting rebels operating in South Kordofan and Blue Nile.
But Kiir said that Bashir lacks “good thinking” as he wants to rush to war with South Sudan before resolving his other troubles. He also mocked Bashir’s talk about uniting the south by force saying that “he is dreaming”.
He said that he will not hesitate to send his four sons to war should it erupt with the north adding that Bashir wants to slaughter the Sudanese people.
“We are the most people to like northerners in Darfur, Nuba and Beja; All people up in the north are our friends…But he [Bashir] hates the Southerners” Kiir said.
He called on Bashir to surrender himself to the ICC and embark on a trip to The Hague saying that the prisons there are luxurious.
“He should get out of this heat and go to the cold country there [Netherlands]” Kiir said mockingly.
Bashir was indicted in 2009 & 2010 by the ICC for war crimes, crimes against humanity and genocide in Darfur, where some 300,000 people are thought to have died in violence raging since a rebellion erupted there nine years ago. Sudan has refused to hand him over to the Hague-based court.
(ST)
http://www.sudantribune.com/South-Sudan-s-Kiir-unleashes,41526
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South Sudan’s Kiir unleashes barrage of attacks against Bashir Sudan Tribune February 6, 2012 (JUBA) – The president of South Sudan Salva Kiir on Monday launched a fierce attack on his Sudanese counterpart Omer Hassan al-Bashir calling him a “thief” and urged him to surrender himself to the International Criminal Court (ICC). |
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