Posts Tagged ‘el obeid’

Juba, South Sudan:

The Republic of Sudan has suddenly blocked the transportation of South Sudan’s crude oil to the international market. On Christmas Eve all loaded cargo was prevented from leaving, while other cargo was not allowed to load.

Speaking to the press on Tuesday, Minister of Petroleum and Mining Stephen Dhieu Dau said two ships carrying 1.6 million barrels of Dar Blend originating from South Sudan were stopped from leaving the port, and an additional 0.6 million Barrels of Dar Blend were prevented from loading. Yet another two more other ships were prevented from landing at Port Sudan to take possession of 1.2 million barrels of Nile Blend purchased from South Sudan. He strongly condemned the act of preventing loaded ships from leaving the port. “This is unlawful and a violation of international laws and norms.”

The Under Secretary of the Ministry of Information Garang says the blockage has caused the Government of South Sudan to lose a huge sum of money. “At the cost of $118 per barrel, the 1.6 million barrels of Nile Blend would have fetched a huge amount, while each barrel of Dar Blend would secure us $165 million,” he said.

Minister Stephen Dhieu Dau further accused the Government of Sudan of trying to steal the oil resources of South Sudan. The government in Khartoum ordered the foreign oil companies to divert all of South Sudan’s Nile Blend crude oil entitlements for December to the Khartoum and El Obeid refineries. They also ordered 550,000 barrels of Dar Blends Crude oil entitlement for December to be delivered to a Sudan buyer.

“What right have they got to take our oil to sell it to others? Where does this happen in the world?” asked Marial Benjamin the Minister of Information and Broadcasting.

It was also reported that the Government of Sudan also intends to divert 13 percent of Dar Blend oil through its new tie-in pipeline they started constructing between the Petrodar pipeline and the Khartoum refinery.

“Any diversion of South Sudan’s oil without our consent is theft”, said Stephen Stephen Dhieu Dau. “And what right do they have to divert our oil to their refineries”? Marial Benjamin questioned.

To this day, it is not yet clear as to what dishonest plans the Government of Sudan had for the oil it had ordered for diversion to its domestic refineries. There are speculations that Sudan planned to sell South Sudan’s oil to a third party or attempted to “launder” the stolen oil by redirecting it to its own refinery and instead selling its own crude on the world market.

The Government of South Sudan vows to take legal actions against anyone who purchases Sudan’s crude while South Sudan’s oil is being stolen at the same time. “Such illegal acquisitions will find no refuge from South Sudan’s legal authorities and will enjoy no future business with South Sudan,” Stephen Dhieu Dau said.

“We are two different states and each state has got sovereignty over its own resources,” said Marial Benjamin the official spokesman of the government of South Sudan. “There is nowhere in the whole world where a country can interfere and decide on the resources of another country. [For example,] Iraq tried to invade Kuwait and take its oil. The resultant effect of which was clearly seen. If our brothers in Khartoum are thinking that they have another Kuwait which is South Sudan, then they have missed the point.”

By. Yobu Annet

Copyright 2006-2010 The Diplomatic Courier™. All rights reserved.

Participants listen during a news conference by Sudan's Minister of Petroleum Awad al-Jaz announcing six new oil and gas blocks will be up for bid in Khartoum January 15, 2012. REUTERS/ Mohamed Nureldin Abdallah

By Ulf Laessing and Khalid Abdelaziz

KHARTOUM | Sun Jan 15, 2012 9:15pm IST

(Reuters) – Sudan on Sunday said it has started confiscating some oil exports from South Sudan it believes it is due to meet unpaid transit fees but will not shut down a pipeline carrying the southern state’s oil.

South Sudan became independent in July under a 2005 peace deal with Khartoum that ended decades of civil war killing two million people but both sides have failed to sort out a long list of disputes.

The biggest conflict is over oil revenues — the lifeline of both economies. Land-locked South Sudan got two thirds of the country’s oil output but needs to pay fees to use northern export facilities.

Both countries have failed to agree on a transit fee but will resume on Tuesday talks sponsored by the African Union in Ethiopia. Previous rounds ended with the parties still wide apart.

Sudan has started confiscating southern oil to compensate for Juba’s failure pay a fee to use Khartoum’s pipeline and the Red Sea port of Port Sudan, members of the northern delegation for the talks in Addis Abeba said.

South Sudan pumps around 350,000 barrels per day (bpd), officials have said. Sudan produces 115,000 bpd in its remaining fields but needs it entirely for domestic consumption.

“Since early December we’ve started taking part of our share after the southern government refused to agree on a deal for a transit fee,” Saber Mohammed Hassan, a member of the delegation, told reporters.

He said Khartoum was now demanding a pipeline fee of $36 a barrel, up from an initial demand of $32.

Delegation member Zubair Ahmed Hassan added Khartoum was taking some southern oil to use for northern refineries but gave no volumes.

South Sudan has accused Khartoum of blocking oil exports of 3.4 million barrels in Port Sudan and asking foreign oil firms to divert some oil to refineries in Khartoum and El-Obeid.

In a second demand, Khartoum wants Juba to pay a total of $1 billion for transit fees since July, said deputy central bank governor Badr el-Din Mahmoud, another delegate.

He said South Sudan also owed Khartoum another $6 billion in debt. “The South has sent us a letter demanding $5 billion but this amount is not correct. We actually demand from the South $6 billion,” he said.

Sudan’s government is under pressure to overcome a severe economic crisis after losing the southern oil which made up 90 percent of the country’s exports. It generated $5 billion in oil revenues in 2010.

“The national economy cannot do without oil,” said Idris Mohamed Abdul-Qadir, head of Khartoum’s delegation.

South Sudan has refused to shoulder Sudan’s foreign debt pile of almost $40 billion which has been a burden for the economy for many years in addition to a U.S. trade embargo deterring most Western firms.


South Sudan has accused Khartoum of “stealing” its oil exports at the northern port of Port Sudan by ordering its security services to load 650,000 bpd of southern oil worth $65 million on a Sudanese tanker.

“The Government of Sudan has chosen to steal this oil in broad daylight just days before its own proposed commercial oil negotiations with the Republic of South Sudan,” South Sudan’s oil minister Stephen Dhieu Dau said in a statement on Saturday.

He said the oil pipeline would be closed within days since storage capacity was filling up in Port Sudan but Azhari Abdalla, director general of Sudan’s Oil Exploration and Production Administration, dismissed this.

“What I can confirm from our side is we will not close any line. It will stay open. You can take this for granted,” he told Reuters.

South Sudan’s top negotiator Pagan Amum said on Sunday oil companies had sent a letter to Khartoum verifying that South Sudan has paid for the use of oil infrastructure in Sudan since July.

“This letter makes it clear that the government of Sudan has no basis to demand any payment from the government of South Sudan because it has been paying and we cannot pay twice,” Amum told reporters in the southern capital Juba.

But northern delegate Zubair said since Sudan owned the pipeline it needed to be paid directly by Juba, not via companies.

(Reporting by Ulf Laessing with; additional reporting by Hereward Holland in Juba; Editing by Greg Mahlich)