Posts Tagged ‘sudanese oil’


By MICHAEL ONYIEGO Associated Press

JUBA, South Sudan April 4, 2012 (AP)
South Sudan’s military spokesman said Wednesday the south’s military shot down a Sudanese fighter jet in its territory after two Sudanese military planes dropped “many” bombs around South Sudanese oil fields.

Col. Philip Aguer said South Sudan’s Air Defense Forces shot down a Sudanese MiG-29 jet fighter Wednesday afternoon in South Sudan’s Unity State. Aguer said he was present for the confrontation and that the downed Sudanese MiG was one of two flying over the Naar and Toma South oil fields. He said the two MiGs had dropped “many” bombs since morning.

South Sudanese forces shot down the MiG with an anti-aircraft gun, he said.

The Sudanese “don’t know that we have the capacity. They underestimate the SPLA,” he said, referring to South Sudan’s forces, the Southern People’s Liberation Army.

The downing of the MiG threatens to push the two countries closer to all-out war. Aguer said southern officials are expecting Sudan to counterattack in retaliation for the shoot-down.

South Sudan split off from Sudan last year after decades of civil war. But the two sides never agreed on where exactly the two countries’ border is, and how to share oil revenues. The south now has most of the oil but must pump it through a pipeline that runs through Sudan.

South Sudan says that Sudan stole much of its oil, and the south shut down production earlier this year, depriving both countries of needed government revenue.

Hostilities between the two sides have grown in recent months, even as the south has said it is trying to avoid a return to war. A planned meeting between the presidents of Sudan and South Sudan scheduled for Tuesday was canceled by Sudan.

Aguer was part of a delegation led by South Sudanese Oil Minister Stephen Dhieu Dau to see a tie-in pipeline allegedly being built by Sudan. The south says the tie-in pipeline is a way for Sudan to steal South Sudan’s oil.

Dau said the incomplete pipeline would be able to pump between 15,000 and 30,000 barrels of oil per day if linked up to Sudan’s oil fields.

“They want take our oil even when we are shut down,” Dau said.

This is not the first tie-in pipeline that has been unilaterally built by Khartoum. Another was built in January to link a pipeline in South Sudan operated by oil-consortium PetroDar to refineries in Khartoum. The pipeline was revealed shortly after Khartoum announced it would take oil “in kind” from South Sudan in lieu of an agreement on how much South Sudan should pay to use Sudan’s pipelines.

In late January South Sudan accused Khartoum of stealing nearly all of its oil and ordered oil fields to halt operations.

According to Dau, the new tie-in pipeline was discovered just over a week ago during the border clashes between the two nations. Dau said SPLA forces found the pipeline when they pushed Sudanese Armed Forces back from Teshwin into the Heglig area on March 26.

“The pipeline was less than 10 kilometers (6 miles) from being complete,” said Dau.

Wednesday’s bombings are the latest in a series of open confrontations between Sudanese and South Sudanese troops that have world leaders on edge. President Barack Obama urged South Sudanese President Salva Kiir earlier this week to exercise maximum military restraint.

But according to Aguer, the fighting has been “a daily thing here on the front line” since the initial confrontation. Aguer said that almost 80 people have been killed — mostly military forces — since the fighting began.

While the region has been quiet since the downing of the MiG plane earlier, the border is tense. According to Aguer, South Sudan is “expecting ground troops to attack at any time.”

http://abcnews.go.com/International/wireStory/south-sudan-shoots-sudanese-jet-16071805#.T3ySD79SRv0

South Sudan says it shoots down Sudanese jet

Boston.com – ‎
By Michael Onyiego AP / April 4, 2012 JUBA, South Sudan—South Sudan’s military spokesman said Wednesday the south’s military shot down a Sudanese fighter jet in its territory after two Sudanese military planes dropped “many” bombs around South Sudanese 
Fox News – ‎‎
JUBA, South Sudan – South Sudan’s military spokesman said Wednesday the south’s military shot down a Sudanese fighter jet in its territory after two Sudanese military planes dropped “many” bombs around South Sudanese oil fields. Col.
BusinessWeek – ‎
By Jared Ferrie on April 04, 2012 South Sudan shot down a Sudanese MiG jet fighter while it was flying over its Unity state, a sign of heightening tensions between the former civil war foes. “This is proof of what we were talking about for the past 
Aljazeera.com – ‎
An oil pipeline on the South Sudan-Sudan border has come under attack by fighter jets and Antonov aircraft, belonging to the Sudanese government. Al Jazeera’s Nazanine Moshiri witnessed Wednesday’s air raids that took place near the town of Heglig, 
Newsday – ‎
Nation Newsday > News > Nation Print Aa Military spokesman: South Sudan shoots down a Sudanese military jet over South Sudan territory Published: April 4, 2012 12:33 PM By The Associated Press JUBA, South Sudan – (AP) — Military spokesman: South Sudan 
MSN NZ News – ‎
Sudan’s military has denied that one of its jets has been shot down, as its neighbour South Sudan alleged. “What media reported, that we lost a fighter plane in Unity state, we confirm that is completely incorrect,” Sawarmi Khaled Saad, the Sudanese 
Catholic Culture – ‎‎
The United States Conference of Catholic Bishops (USCCB) and Catholic Relief Services (CRS) are asking Catholics to call upon Secretary of State Hillary Clinton to intensify her efforts on behalf of the Sudanese people. “The long-term peace and 
South Sudan Says It Shoots Down Sudanese Jet
ABC News
South Sudan’s military spokesman said Wednesday the south’s military shot down a Sudanese fighter jet in its territory after two Sudanese military planes dropped “many” bombs around South Sudanese oil fields. Col. Philip Aguer said South Sudan’s Air 
Sudan: China’s New Courtship in South Sudan
AllAfrica.com
Following its oil interests and other opportunities to Juba, China is building a new relationship withSouth Sudan but finds itself drawn into a dangerous dispute that risks bringing the Sudans back to conflict. China’s New Courtship in South Sudan 
Sudan: Report Summary: China’s New Courtship in South Sudan
AllAfrica.com
The future of Beijing’s dual engagement, and the kind of relationship that emerges in the South, will depend in part on how the oil standoff – and this broader reform agenda – are confronted. As South Sudan prepared for its 2011 self-determination 
A Success Worse Than Failure? Lessons From Activist Campaigns in South Africa 
Huffington Post (blog)
A deeper examination reveals that two of history’s more prominent and similar activist movements — those against South Africa’s apartheid regime and Sudan’s NCP government — may have have produced just such contradictory campaigns.
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A picture taken on March 3, 2012 shows environmental damage caused by bombs which hit El Nar oil field in Unity State, South Sudan on February 29.

Photo: AFP
A picture taken on March 3, 2012 shows environmental damage caused by bombs which hit El Nar oil field in Unity State, South Sudan on February 29.

Talks between Sudan and South Sudan broke down in a shouting match late Tuesday, not long after the U.N. demanded the countries take steps to avoid war.

A participant in the talks said that the talks stopped after the sides could not agree on the wording of a draft agreement over citizenship issues.  Negotiations are scheduled to continue Wednesday.

Earlier, the U.N. Security Council demanded that Sudan and South Sudan take steps to reduce hostility amid bitter disputes involving oil, and accusations that each side supports the other’s rebel groups.

Ambassador Mark Lyall Grant of Britain, which holds the rotating Council presidency, said Tuesday the Council is gravely concerned about reports of troop movements and airstrikes along the border.

He urged the countries to respect a non-aggression pact they signed less than a month ago. “The Security Council demands that all parties cease military operations in the border areas and put an end to the cycle of violence,” said the ambassador.

The Council also demanded that Sudan and South Sudan “take no action that would undermine the security and stability of the other.”

The statement came as Sudan and South Sudan began the scheduled 10 days of talks in Addis Ababa.  The African Union is trying to mediate disputes centered on oil revenue sharing, the undemarcated border, and citizenship questions raised by South Sudan’s independence in July.

The south took over most Sudanese oil production but is refusing to pay what it considers excessive transit fees to use northern pipelines.  The landlocked south needs the pipelines to send the oil to international markets.

The dispute prompted South Sudan to shut down all oil production, a move analysts say is likely to hurt both countries financially.

The sides are also in disagreement over borders of the oil-producing Abyei region, and the status of southerners living in the north.

A previous round of talks last month yielded no progress, except for the non-aggression pact.

When Sudan was a unified country, the north and south fought a bloody 21-year civil war.

http://www.voanews.com/english/news/africa/UN-Demands-Stop-to-Sudanese-Violence-141603693.html

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    Philippine Star – ‎
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By Ulf Laessing

JUBA (Reuters) – South Sudan has started legal steps to track down oil seized and sold by Sudan in a row between the two countries over oil payments, a government spokesman said on Friday.

The landlocked African nation needs to export its crude through Sudan but both nations have failed to agree on a transit fee, prompting Khartoum to seize some southern oil. Sudan has sold at least one oil cargo, industry sources have told Reuters.

South Sudan has responded by shutting down its entire output of 350,000 barrels per day. Juba accuses Khartoum of seizing 6 million barrels since December.

“The ministry of petroleum has notified the ministry of justice and has issued a legal notice internationally through our legal international consultants to track down this oil and has reported that this is stolen oil,” government spokesman Barnaba Marial Benjamin told reporters after a cabinet meeting.

He also said the government was investigating whether Chinese oil firms operating in South Sudan have helped Khartoum to seize oil.

“Once it is proven through an investigation definitely the government of the Republic of South Sudan will take steps,” he said, without elaborating.

State oil firms from China, India and Malaysia own majority shares in the three consortiums extracting oil in South Sudan. China is the biggest buyer of South Sudanese oil and has built the most oil facilities in both countries.

Oil talks between Sudan and South Sudan sponsored by the African Union in Ethiopia will resume on February 23 but Barnaba said Khartoum was undermining negotiations by having bombed a disputed border region this week. Sudan denies this.

Barnaba also said Sudan was trying to secure development loans on international markets using natural resources such as oil and its agricultural potential as guarantee.

“South Sudan is the only country that has no debt … Even the United States they borrow money, Britain borrows so why can’t we borrow?,” he said, without giving a timeframe or targeted volumes.

(Editing by James Jukwey)

http://af.reuters.com/article/worldNews/idAFTRE81G14A20120217?sp=true

Sudan and South Sudan Fail to End Oil Dispute
New York Times
KHARTOUM, Sudan — Negotiations between Sudan and South Sudan over billions of gallons of oil have ended with very little progress, prolonging a dispute that is undermining the fragile economies of both nations and straining the tenuous peace between 


South Sudan
 oil shutdown pushes up prices

UPI.com
JUBA, South Sudan, Feb. 17 (UPI) — South Sudan’s 3-week-old shutdown of its oil industry in a dispute over oil revenues with the fledgling state’s former leaders in Khartoum is likely to drag on and push up global oil prices.
South Sudan: UN supports projects to boost people’s livelihood in volatile state
UN News Centre
Challenges facing South Sudanese include poor harvests, price hikes, conflict and displacement. UN Photo/Isaac Billy The United Nations Food and Agriculture Organization (FAO) is supporting a series of short- and long-term projects to help the people 
South Sudan seeks new oil pipeline
Daily Monitor
With the government in Juba having decided that it will no longer export crude oil through North Sudan, the need for an alternative route to the sea is now more urgent than it has ever been forSouth Sudan. A high level delegation from South Sudan has 
UN provides condoms to South Sudanese military to fight high rates of HIV/AIDS
UN News Centre
The United Nations is working with a non-governmental organization (NGO) to provide condoms to the South Sudanese military in a bid to tackle the high rates of HIV/AIDS among the country’s soldiers. “The military has a big number of young people who 

UN News Centre
Fire guts South Sudan ruling party offices
Africa Review
What remained of South Sudan ruling party head offices after a fire Friday afternoon. MACHEL AMOS | AFRICA REVIEW | By MACHEL AMOS in JubaPosted Friday, February 17 2012 at 20:34 Fire gutted South Sudan ruling party head offices Friday afternoon.


South Sudanese in UAE fear diplomatic limbo
The National
DUBAI // South Sudanese nationals living in the UAE are anxious about an April deadline for obtaining new passports as their young country has yet to open an embassy in the Emirates. A senior Sudanese official said last month that starting on April 8, 

Italy: FAO to help conflict-scattered families feed in South Sudan
Afrique en Ligue
Rome, Italy – The UN Food and Agriculture Organization (FAO) is helping people in the conflict-affected South Sudanese state of Jonglei feed themselves and rebuild their lives through a series of emergency and long-term actions.

Sudan begins legal steps to track oil sold by Sudan
Oman Daily Observer
JUBA — South Sudan has started legal steps to track down oil seized and sold by Sudan in a row between the two countries over oil payments, a government spokesman said yesterday. The landlocked African nation needs to export its crude through Sudan 


February 15, 2012 (JUBA) – Chinese oil companies operating in South Sudan face the possibility of expulsion if it is proven that they are complicit in stealing the country’s oil, a senior official said here today.

JPEG - 28 kb
President of Sudan Omer Hassan al-Bashir and Chinese President Hu Jintao listen to the national anthems during a welcoming ceremony at the Great Hall of the People on June 29, 2011 in Beijing, China (AFP)

The newborn state which became independent last July is locked in a row with its northern neighbour over oil and transporting it through the pipeline that runs through Sudan’s territory.

Khartoum wants Juba to pay $36 per barrel of oil it exports using Sudan’s infrastructure. But South Sudan says the fair fee should be around $1. An African Union (AU) panel tasked with mediating in this dispute among others has tabled a number of proposals that were rejected.

The Sudanese government frustrated with the lack of progress of the oil talks started seizing part of the crude exported saying that this would be to make up for unpaid invoices owed by Juba. The latter retaliated by suspending oil production altogether.

South Sudan also warned that it will sue any party that is proven to have facilitated or bought oil “stolen” by Khartoum.

Today the country’s chief negotiator in the oil talks Pagan Amum went further in this regard and singled out Chinese companies.

“Our relations with China are beginning but they are of course having difficulties now because of the role of some Chinese companies or individuals covering up some of this stealing,” Amum told reporters in Juba according to Reuters.

“We will make them pay the cost or else they are out of the country,” he added, without naming the firms.

State oil firms from China, India and Malaysia own majority shares in the three consortium’s extracting oil in South Sudan. China is the biggest buyer of South Sudanese oil and has built the most oil facilities in both countries.

Amum also said the Sudanese oil ministry had ordered Malaysian-Chinese pipeline operator Petrodar this week to switch on a tie-in pipeline to divert 120,000 bpd of southern oil to Sudan’s refineries.

He handed out a letter dated 13 February, allegedly from Petrodar, informing South Sudan that Sudan had commissioned the tie-in line to transfer crude “unilaterally and by force”.

China has attempted to reconcile differences between the two sides and last year dispatched its special envoy to Africa for that purpose but has met little success.

Despite being the country with the largest stake in the oil, Beijing has remained mostly silent in recent weeks amid escalation of rhetoric between Khartoum and Juba and warnings from the two sides on the possibility of reverting back to war.

(ST)

http://www.sudantribune.com/South-Sudan-threatens-to-expel,41616


South Sudan
 oil shutdown pushes up prices

UPI.com
JUBA, South Sudan, Feb. 17 (UPI) — South Sudan’s 3-week-old shutdown of its oil industry in a dispute over oil revenues with the fledgling state’s former leaders in Khartoum is likely to drag on and push up global oil prices.
South Sudan: UN supports projects to boost people’s livelihood in volatile state
UN News Centre
Challenges facing South Sudanese include poor harvests, price hikes, conflict and displacement. UN Photo/Isaac Billy The United Nations Food and Agriculture Organization (FAO) is supporting a series of short- and long-term projects to help the people 
South Sudan seeks new oil pipeline
Daily Monitor
With the government in Juba having decided that it will no longer export crude oil through North Sudan, the need for an alternative route to the sea is now more urgent than it has ever been forSouth Sudan. A high level delegation from South Sudan has 
UN provides condoms to South Sudanese military to fight high rates of HIV/AIDS
UN News Centre
The United Nations is working with a non-governmental organization (NGO) to provide condoms to the South Sudanese military in a bid to tackle the high rates of HIV/AIDS among the country’s soldiers. “The military has a big number of young people who 

UN News Centre
Fire guts South Sudan ruling party offices
Africa Review
What remained of South Sudan ruling party head offices after a fire Friday afternoon. MACHEL AMOS | AFRICA REVIEW | By MACHEL AMOS in JubaPosted Friday, February 17 2012 at 20:34 Fire gutted South Sudan ruling party head offices Friday afternoon.

The economy of South Sudan, the world’s youngest nation, which draws 99 per cent of its income from oil, is set to grow as plans for a pipeline bypassing the north progress.

Construction on a pipeline allowing South Sudanese oil to circumvent the north could start by July, boosting the fledgling nation’s revenue and global oil supplies.

South Sudan has signed a memorandum of understanding with Ethiopia to build an oil pipeline running through Djibouti, and the government is in talks with a Texas pipeline construction company to start work in six months, said Barnaba Marial Benjamin, South Sudan’s information minister. He did not identify the Texas company.

The plan for a pipeline through Ethiopia is the latest floated by the South Sudanese government in recent months. Another plan envisaging a pipeline snaking through Uganda to the Kenyan coast was under consideration by companies including Japan’s Toyota and the French oil major Total, which holds exploration blocks in South Sudan.

“We had to look for alternative route for exporting the oil after we have reached a deadlock with Sudan, which is exaggerating in the oil transit fees,” Mr Benjamin told the Chinese state news agency Xinhua recently.

Khartoum and the southern capital, Juba, have been embroiled in a dispute over oil export payments since South Sudan gained independence in July.

South Sudanese oil reaches international markets by only one conduit: the Greater Nile Oil Pipeline, which runs through Sudan to a port on the Red Sea.

Khartoum wants US$6 (Dh22) for every barrel of oil transported through the pipeline, while Juba is willing to pay only $1 a barrel and says Khartoum should also provide it with $2.4 billion in financial aid and withdraw its troops from Abyei, a flashpoint region on the border between the north and the south.

Last month, South Sudan halted its 350,000 barrels per day (bpd) oil production.

The shutdown has squeezed global crude supplies in a time of reduced output from Yemen, Syria and Libya.

ayee@thenational.ae

http://www.thenational.ae/business/energy/south-sudan-pins-hopes-for-growth-on-pipeline
Sudan, South Sudan locked in contentious oil talks

Cape Town (Platts)–13Feb2012/510 am EST/1010 GMT

Sudan and its neighbor South Sudan are locked in talks on a dispute over oil revenues and transit fees in the Ethiopian capital Addis Ababa that have raised bilateral tensions and threaten to unravel a peace deal.

In a press release published in local media on Monday, Khartoum said Juba had discussed resuming exports through Sudan “as soon as the two sides reach a commercial agreement.”

The leaders of both countries failed to agree on a deal to end an oil dispute during the last round of talks, mediated by the African Union. Last month, the south cut off oil output after it accused the north of stealing $815 million worth of its oil.

Both Sudan’s President Omar al-Bashir and South Sudanese President Salva Kir have in recent days hinted that the two former civil war foes may be close to war.

As the dispute drags on, South Sudan last week signed a memorandum of understanding with Ethiopia to build an alternative pipeline to the port of Djibouti. South Sudanese Information Minister Barnaba Marial Benjamin was quoted as saying a Texas-based company could build the pipeline in six months.
South Sudan took three quarters of Sudan’s oil when it gained independence last July as part of a comprehensive peace agreement reached in 2005. But the south has little infrastructure and relies on northern pipelines to export its oil. Khartoum has demanded $32/barrel in transit fees while Juba has offered $1/b.

The two sides did sign a “treaty of non-aggression” on their disputed border Friday, chief negotiator of the Addis Ababa talks Thabo Mbeki, the former president of South Africa, told reporters.

According to the pact, the two sides agreed to show “respect for each other’s sovereignty and territorial integrity” and to “refrain from launching any attack, including bombardment.”

Negotiations between the two neighbors have been marred by eruptions of violence along the border, including in the contested Abyei and Blue Nile states.

–Jacinta Moran, jacinta_moran@platts.com

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7197527

South Sudan pins hopes for growth on pipeline
The National
The economy of South Sudan, the world’s youngest nation, which draws 99 per cent of its income from oil, is set to grow as plans for a pipeline bypassing the north progress. Construction on a pipeline allowing South Sudanese oil to circumvent the north

South Sudan: Sexually Transmitted Infections: Tackling Taboo Illnesses On the
AllAfrica.com
Vicky Lawa, 29, from Nimule, South Sudan. Vicky found out she was HIV positive when she was pregnant with her son, Lucky Solomon, who is now three months old. (Photo Courtesy Emily Dugan/Merlin) Washington, DC — Valentine’s Day means red roses and

South Sudan race to compete at London Games
Reuters Africa
By Mark Gleeson LIBREVILLE (Reuters) – South Sudan, the world’s newest country, hopes to send athletes to the London Olympics but is racing against time to secure membership of various sporting federations and the IOC, the sports minister said on

Young Christians in South Sudan too afraid to go to Mass
Scottish Catholic Observer
He said the young men, many of them university students, are being forced to fight against the Government of South Sudan and the SouthSudan-based Sudanese People’s Liberation Army (SPLA). The newly independent, and mainly Christian, South Sudan broke

Sudan, South Sudan locked in contentious oil talks
Platts
Sudan and its neighbor South Sudan are locked in talks on a dispute over oil revenues and transit fees in the Ethiopian capital Addis Ababa that have raised bilateral tensions and threaten to unravel a peace deal. In a press release published in local

South Sudan welcomed as official CAF member nation
insideworldfootball (blog)
By Andrew Warshaw February 13 – Seven months after becoming an independent country following a bloody civil war, South Sudan has been admitted as the 54th member of the Confederation of African Football (CAF), paving the way for it to be named as the

South Sudan oil output stoppage drives up prices
Financial Times
But rather than looking at supply disruptions stemming from the Strait of Hormuz, they need to turn their eyes to South Sudan. The African country, which won independence from its northern neighbour last year, was until last month pumping about 260000

South Sudan – The Lasting Effect of Conflict on South Sudan’s Education System
Reuters AlertNet
JUBA, South Sudan/GENEVA, 8 February 2012 (LWI) – There is a hunger for education in South Sudan that is obvious wherever you go. Young people will travel hundreds of kilometers to attend school or university. Old people in the most impoverished areas

IDC students move to stop classmates’ deportation
Jerusalem Post
By Ben Hartman A group of students from the Interdisciplinary Center in Herzliya (IDC) has launched a Facebook campaign in a last-ditch attempt to stop the deportation of three classmates from South Sudan. The Facebook page, entitled “IDC Students

Khartoum signals optimism as oil talks with South Sudan starts
Sudan Tribune
February 12, 2012 (KHARTOUM) – Negotiations between the governments of Sudan and South Sudan over oil officially started on Sunday as Khartoum indicated a relaxation in Juba’s decision to halt production of the commodity. The talks were originally

President Al-Bashir describes South Sudan decision to close oil pipeline as
Sudan News Agency
12 (SUNA) – President of the Republic, Field marshal Omer Al-Bashir, described the decision of the government of South Sudan to close down the oil pipelines as sheer suicide, affirming that the government of Sudan will continue its plans for realizing

Sudan ‘Lost Boy’ speaks to Westborough students
MetroWest Daily News
Haroun Bakhit, a native of Sudan, speaks to students at Gibbons Middle School in Westborough on Friday. By Kelleigh Welch/Daily News staff Haroun Bakhit had nothing when he left his home in South Sudan in search of a better life. “We had no cars,

Fire in South Sudan’s Lakes state forest kills 12
Sudan Tribune
February 13, 2012 (RUMBEK) – The government of South Sudan’s Lakes state has reported that 12 people, were found dead on Saturday afternoon in the forest of Titagau payam [district] of Yirol East county. Yirol East commissioner, Bullen Bol Achinbai,

S. Sudan Parliament bans journalist
Sudan Tribune
February 12, 2012 (JUBA) – A journalist has been banned from covering proceedings in South Sudan’s national assembly, after an investigation committee allegedly found him guilty of violating the assembly’s code of conduct. Lawmakers who attended the

Food crisis in South Sudan can impact millions
Women News Network
Today regions in Sudan continue to be greatly impacted by drought and food shortages from effects of climate change and conflict. Image: UNphoto/Tim McKulka (WNN/UNNS): South Sudan, AFRICA: Two United Nations agencies warned last week that millions of


* South Sudan produced about 260,000 bpd of crude in Dec

* Disagreements with north over fees a threat to supply

By Yeganeh Torbati

LONDON, Feb 10 (Reuters) – South Sudanese oil output could remain absent from world markets in the near future, the International Energy Agency (IEA) said on Friday, as the country struggles to reach a revenue-sharing agreement with its northern neighbour.

South Sudan shut down its oil production in January, after Sudan seized some of the crude in a dispute over fees.

The landlocked South’s only current means of exporting its crude is through northern pipelines, although it is considering building a pipeline through Ethiopia and Djibouti.

The IEA estimates South Sudan was producing about 260,000 barrels per day (bpd) in December, while Sudan produced 110,000 bpd.

“In the absence of a foreseeable resolution, we have also reduced production estimates by around 200,000 bpd in (the first quarter of 2012) and by 100,000 bpd for 2012, reflecting landlocked South Sudan’s export conundrum,” the IEA said.

China, which imported 260,000 bpd of Sudanese and South Sudanese oil last year, about 5.2 percent of its total imports, is likely to see the biggest impact from the disruption, the IEA said.

Khartoum and Juba have other disagreements, including over the status of Abyei, a border region that is claimed by both.

“While it is impossible to predict the outcome, the broader set of economic and political factors at play mean that the two countries’ oil output will remain at risk at least for the remainder of the year,” the IEA said.

Sudan and South Sudan are set to resume oil talks on Friday. (Reporting By Yeganeh Torbati; editing by Keiron Henderson)

http://www.reuters.com/article/2012/02/10/south-sudan-oil-idUSL5E8DA3H020120210

South Sudan oil output at risk in 2012 – IEA
Reuters
South Sudan produced about 260000 bpd of crude in Dec * Disagreements with north over fees a threat to supply By Yeganeh Torbati LONDON, Feb 10 (Reuters) – South Sudanese oil output could remain absent from world markets in the near future, 

SOUTH SUDAN: Briefing on Jonglei violence
IRINnews.org
JUBA, 10 February 2012 (IRIN) – Several clashes involving thousands of combatants in South Sudan’s Jonglei state have highlighted the volatility of the world’s newest country, affecting some 140000 people. A major new offensive has been announced to 

South Sudan set for Caf membership
BBC Sport
South Sudan is set to become a provisional member of the Confederation of African Football (Caf) on Friday. The move will mark the first step to it becoming the world’s newest footballing nation. The country, which was declared independent from Sudan 

South Sudan admitted as a member of CAF
SI.com
LIBREVILLE, Gabon (AP) –South Sudan was admitted as a member of the Confederation of African Football on Friday, becoming the world’s newest footballing nation. Africa’s football body accepted the application by the South Sudan Football Association to 

Amnesty, HRW concerned about Sudans
UPI.com
10 (UPI) — Leading human rights organizations expressed alarm over the situation in the Sudanese region, where ethnic violence and weapons in Darfur threaten the region. Human Rights Watch called on authorities in South Sudan, which gained 

Don’t Paralyze the Peacekeepers
New York Times
IN South Sudan, which is once again on the verge of descent into war, the new year began with a horrific scene: the corpses of men, women and children lying strewn in the mud, killed by a militia just yards from the gates of a United Nations compound 

South Sudan in Ethiopia-Djibouti oil pipeline deal
BBC News
Landlocked South Sudan has signed a second oil pipeline deal in a bid to reduce its dependence on Sudan – amid a deepening oil crisis. The only export route for southern oil – which makes up 98% of its budget – is via its northern neighbour…

Sudan & South Sudan set to resume post-secession talks
Sudan Tribune
February 9, 2012 (KHARTOUM) – Sudan and South Sudan are due today to resume negotiations on a host of post-secession issues amid a period of acrimony caused by repeated failure to resolve their oil dispute. Sudanese president Omar al-Bashir, right, 

South Sudan: Warrap and Lakes states appeal to the executive to stop tribal 
Sudan Tribune
They also raised concern over lack of effective communications between the three governors in order to amicably address the insecurity situation involving their respective states. Comments on theSudan Tribune website must abide by the following rules…

South Sudan: Govt Enters Discussions With Djibouti Over Alternative Pipeline Route
AllAfrica.com
By Ngor Arol Garang, 9 February 2012 Juba — South Sudan on Thursday said it has started talks with the Djibouti government to build an alternative oil pipeline through Ethiopia and Djibouti; weeks after the cabinet of the new nation passed a 

South Sudan: Justice Needed to Stem Violence
Human Rights Watch
(New York) – South Sudan should urgently ensure an effective and independent investigation into the violent, ethnic-driven attacks in Jonglei state, and arrest and prosecute those identified as responsible, Human Rights Watch said today.

Angola Sends Envoy to South Sudan to Seek Oil Deal, Jornal Says
Bloomberg
Angola will send an envoy to South Sudan next week to negotiate an oil deal for state-owned oil company Sonangol EP, Novo Jornal reported, citing an unidentified company official. President Jose Eduardo dos Santos has asked Lopo do Nascimento, ..

BY LUKE PATEY, 6 FEBRUARY 2012

ANALYSIS

Across South Sudan demonstrations have been held in support of President Salva Kiir’s decision to shutdown its 350,000-barrel daily oil production.

This came after Sudan’s confiscation of several shipments through the only existing pipeline out of the landlocked country, and as ongoing negotiations on a possible transit fee for South Sudan’s oil have failed.

In Bor, the state capital of South Sudan’s largest state Jonglei, hundreds protested the oil ‘looting’. Primary and secondary school students were among the thousands that took to the streets of Rumbek in Lakes state, calling Sudanese President Omer al-Bashir a ‘great thief’. Peaceful demonstrations outside the National Assembly in the capital Juba urged South Sudan to ‘turn on’ its agricultural potential as the oil taps were turned off.

Together, it was a remarkable show of support for Kiir’s bold move to suspend the country’s largest revenue earner in defiance of its former foes in Khartoum. This is however not the first time southern Sudanese have protested over an oil pipeline.

In the spring of 1978 the then President, Jaafar Nimeiri, announced the decision to build a pipeline from freshly discovered oil fields in the south, to Port Sudan on the Red Sea. Nimeiri and his oil minister made the plans while visiting the San Francisco headquarters of Chevron, the American oil company which made the first discoveries of Sudanese oil.

The decision infuriated southern Sudanese, who wanted to see the oil head southeast to Mombasa on the Kenyan coast. While it would take another 20 years to build, ultimately by Chinese not American oil companies, and South Sudan has since won its political independence from Khartoum, the oil pipeline still stands in the way of full economic independence. A revival of this 30 year-old dream represents the final step in gaining economic independence for many of South Sudan’s political leaders, but building a southern pipeline through Kenya is fraught with challenges.

To understand some of the main technical and security challenges facing the construction of a southern pipeline, it is useful to compare the possible route with the existing pipeline through Sudan. South Sudan’s main oil production is connected to Sudan by a 1,360 km pipeline from the Melut basin of Upper Nile state.

The proposed alternative, ending at an expanded port of Lamu, would be around 1,800 kilometers (depending on the exact route through Kenya) and the topography of the routes differ vastly. The existing pipeline runs across quite a flat landscape, requiring only six pumping and heating stations to keep the highly-acidic crude flowing, the new pipeline would cover diverse terrain, possibly including the highlands of northern Kenya. This will require significantly more investment in pumping stations to speed crude up the inclines and slow it down on the declines.

Additionally, there are also significant security concerns for the new pipeline. The existing route is mostly though northern Sudan, where the heavy hand of the Sudanese military and pro-government militias has laid waste to communities in and around oil areas. The new route may cross the impoverished, and bandit-riven territories of northern Kenya, where Nigerian-style oil theft and pipeline sabotage could potentially be a problem, requiring considerable time for due diligence in pipeline construction and routing. In fact, the proposed pipeline has already been threatened by rebel groups in South Sudan. The technical and security challenges for the new pipeline amount to a year or two of construction time at best and a potentially insecure construction, and later possible security threats once the pipeline is operational. Last but not least, an estimated price tag of anywhere from $1.5 to $3 billion, which is a tidy sum to wager for even the most audacious investors, but not an impossibility.

Late last month, South Sudan signed a memorandum of understanding with Kenya to build the long-discussed oil pipeline. Such broad agreements are often not worth the paper they are written on, but nonetheless represent an important initial step. Japan’s Toyota as well as Chinese companies and investors have shown some willingness to support the venture. The French oil major Total, which has rights over the largest oil block in South Sudan, has said it is interested in linking possible new discoveries in Sudan to its growing interests in Uganda. But production from existing oil fields in South Sudan has peaked, and barring new discoveries and significant investment in secondary recovery, will sharply decline from current levels over the next five years. A new pipeline would only make economic sense if Total or others operating in South Sudan were to make impressive new discoveries in the coming years.

Regional developments are however working in favour of the new pipeline. Kenya is serious about making Lamu a major international port and, more importantly, the discovery of 3 billion barrels in oil reserves along Lake Albert in Uganda opens new possibilities for South Sudan’s oil in a regional network of pipelines. Current disputes between oil companies and the Ugandan government will need to be smoothed out first, but the face of East African oil will change in the years to come, making it possible to imagine an environment in which such a pipeline could be constructed.

Economically, the best scenario for South Sudan’s oil is undoubtedly to stop pipe-dreaming, work out an agreement with Sudan, and continue to send its oil north. Investing in a new multi-billion dollar southern pipeline is, in the current climate, financial insanity. But South Sudan feels that it has been backed into a political corner in negotiations with its Northern neighbour on pipeline transit fees. Sudan’s oil sector has always been more about politics than productivity. Even with an agreement, the history of consistent political bickering and brinksmanship between the two sides over oil will most likely continue. But the longer it takes to foster stable relations over oil, the more likely the people of South Sudan will one day hit the streets in celebration of a new pipeline.

Luke Patey is a Research Fellow at the Danish Institute for International Studies and co-editor of Sudan Looks East: China, India and the Politics of Asian Alternatives (James Currey, 2011)

South Sudan: Pipe-Dreaming Over Oil in South Sudan
AllAfrica.com
By Luke Patey, 6 February 2012 Across South Sudan demonstrations have been held in support of President Salva Kiir’s decision to shutdown its 350000-barrel daily oil production. This came after Sudan’s confiscation of several shipments through the only 

A jazz singer’s gift of music to South Sudan’s children
Globe and Mail
Ms. Pelley, a jazz singer, is a stalwart volunteer for Canadian Aid for Southern Sudan. After decades of internal conflict and war, and independence from North Sudan just last year, the Republic of South Sudan is in rebuild mode.

The war of words between the recently-divided two Sudanese nations is escalating – with the President of Sudan saying war with the south is a ‘possibility’.

During an interview on state television, Omar Hassan al-Bashir insisted he wanted peace, but would go to war ‘if forced to’.

A dispute between the two countries over oil has been rumbling on for months.

Landlocked South Sudan has all the precious resource, but Sudan in the north has the ports and part of the pipeline passing through it.

The row is over fees Sudan believes it should be paid.

As the two have failed to agree a sum, Sudan has seized some of the oil in transit and detained some tankers during the export process.

South Sudan is accusing its northern neighbour of stealing 66 million euros worth of oil and stopped all production last weekend – affecting foreign companies. However, analysts predict the stoppage can not last more than five months.

http://www.euronews.net/2012/02/04/war-between-two-sudans-is-possibility/

Sudanese president: We are close to war with South Sudan

By JPOST.COM STAFF02/04/2012 07:23
Sudanese President Omar al-Bashir warned Friday that his country is close to going to war against South Sudan, according to an AFP report.”The climate now is closer to a climate of war than one of peace,” said Bashir on national television.

Tension has been rising between the two countries since Sudan seized a shipment of 1.7 million barrels of South Sudanese oil.. In response to the move, South Sudan halted oil exports, which usually pass through Sudan, earning that country a substantial amount of money in taxes.

The countries are also locked in a border dispute over the oil-rich Abyei region, which both claim as their own sovereign territory.

Sudan’s Bashir says tensions with South could spark war
Fri Feb 3, 2012 8:50pm GMT

By Khalid Abdelaziz and Ulf Laessing

KHARTOUM Feb 3 (Reuters) – Sudan’s President Omar Hassan al-Bashir said on Friday tensions with South Sudan over oil transit payments could lead to war between the two countries.

Asked in an interview with state television whether war could break out with South Sudan, Bashir said: “There is a possibility.”

He said Sudan wanted peace but added: “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,” he said.

South Sudan took away much of Sudan’s oil production when it split away from Khartoum as an independent country in July. Oil is the lifeline of both economies.

The landlocked South still needs to export its crude through the north’s port and pipelines. But the two countries went their separate ways without agreeing how much South Sudan was going to pay Sudan to use its oil infrastructure.

The crisis came to a head when Khartoum said in January it had seized some southern oil as compensation for unpaid fees. South Sudan responded by shutting down oil production.

Bashir accused Juba of shutting down the oil flow to provoke a collapse of the Sudanese government. Khartoum has been fighting an economic crisis since the loss of southern oil, sparking small protests against high food prices and corruption.

Bashir said it was clear Juba did not want to reach an oil deal after his southern counterpart Salva Kiir had refused to sign during a meeting with him a proposal made by the African Union in Addis Ababa last week.

“They (the South) didn’t sign and they will not sign,” Bashir said, adding that Khartoum was entitled to 74,000 barrels of day of southern oil. Juba pumped 350,000 bpd prior to the shutdown.

“This is our right,” he said.

There was no immediate comment from Juba. Kiir said on Thursday he had rejected the deal in Addis Ababa because it would have required the South to pay billions of dollars to Khartoum and keep exporting crude through Sudan.

South Sudan wants to develop an alternative pipeline to Kenya to bypass Sudan’s facilities but oil insiders are sceptical the project is viable.

ECONOMIC CRISIS

Bashir said the economic situation was difficult for Sudan this year but the country would boost current oil production of 115,000 bpd by 75,000 bpd. Sudan’s current output serves only domestic consumption.

Bashir said Sudan would also export gold worth $2.5 billion this year and expand the agricultural sector to compensate for the loss of oil. Experts have expressed doubts that raising gold exports and other plans to diversify the economy will offset the loss of oil revenues of $5 billion booked in 2010.

They say economic diversification has been hampered for years by corruption, misplanning and a U.S. embargo in place since 1997 for hosting militants such as Osama bin Laden in the past.

Apart from oil, the north and south also need to mark the 1,900 km (1,200 miles) long border and find a solution for the disputed region of Abyei. Khartoum also wants Juba to share Sudan’s external debt of $38 billion.

Both countries regularly trade accusations of supporting rebels on each other’s territory.

To read an analytical story about the conflict between Sudan and South Sudan double click on: (Reporting by Ulf Laessing and Khalid Abdelaziz)

http://af.reuters.com/article/commoditiesNews/idAFL5E8D33ZT20120203?sp=true


SINGAPORE Feb 1 (Reuters) – South Sudan’s chief negotiator has rejected African Union-backed proposals that could see it pay up to $6.5 billion to Sudan in the latest attempt to break a deadlock between the two over oil export transit fees, the Financial Times reported on Wednesday.

The latest draft proposal from the AU foresees the South giving Sudan a direct cash transfer of between $2.6 billion and $5.4 billion, plus transit fees worth up to $1.1 billion, covering the period until the end of 2014, the report said.

The AU set these figures as parameters for discussion, with an exact figure to be decided on within 30 days, it added.

“The AU has lost sight of the principle of mutual economic viability,” Pagan Amum, lead negotiator for the South, was quoted by the Financial TImes as saying.

“We could not sign; they were stealing the oil and obstructing the flow of our oil, and this robbery continues up to today. Now it is not secure for us to put our oil through Sudan because of this state piracy. This is about our economic independence. No country can continue through a country that is hostile.”

South Sudan — which seceded last July under a 2005 peace agreement that ended decades of civil war with Khartoum — has shut down its roughly 350,000 barrels per day of oil production in protest after Khartoum started to seize some southern crude to compensate for what it called unpaid fees.

The landlocked new nation took control of about three quarters of the unified country’s roughly 500,000 barrels a day in oil output, but it needs to export its crude through northern pipelines to the Red Sea port of Port Sudan.

Earlier, Amum reiterated South Sudan’s proposal that the country pay a fee of $0.69 per barrel for one of the pipelines and $0.63 per barrel for another. Sudan has publicly stated it wants a fee of $36 per barrel.

Oil provides about 98 percent of South Sudan’s income and is vital to the impoverished country as it tries to develop infrastructure and institutions devastated by a war that killed an estimated 2 million people. (Reporting by Himani Sarkar; Editing by Simon Webb)

http://af.reuters.com/article/sudanNews/idAFL4E8D10LA20120201

South Sudan rejects AU oil plan
Financial Times
South Sudan’s chief negotiator has rejected African Union-backed proposals that could see it pay up to $6.5bn to Sudan in the latest attempt to break a vicious deadlock between the two over sharing oil revenues. The impasse, which reached a head at the 

Israel Says It Will Deport South Sudanese
ABC News
Now that their country has gained independence, thousands of migrants from South Sudan must leave Israel or face deportation, Israel’s Interior Ministry said Tuesday. Some 7000 South Sudanese are believed to be in Israel, part of a larger influx of 

Q+A: Can buyers of seized Sudanese crude get into legal trouble?
Reuters UK
By Florence Tan and Osamu Tsukimori | SINGAPORE (Reuters) – Buyers of South Sudanese oil seized by Sudan may escape legal trouble although Khartoum may get dragged into a prolonged arbitration battle for selling crude at steep discounts, lawyers said 

UN scales up food assistance for more than 80000 people in South Sudan
UN News Centre
An internally displaced mother and her children among IDPs in South Sudan. Photo: UNMISS/Gideon Pibor The United Nations World Food Programme announced today that it will scale up its assistance to reach 80000 people affected by the recent escalation 

South Sudan’s Development: How Will It Be Financed ?
Voice of America
January 31, 2012 South Sudan’s Development: How Will It Be Financed ? Panelists at a recent VOA-sponsored public discussion answer audience questions Nation building is never easy. And for South Sudan, it is an even more difficult task given the 


BEIJING — China’s Foreign Ministry on Tuesday summoned a leading Sudanese diplomat to express “deep shock” over the abduction of 29 Chinese workers after an attack in a volatile region of the country.The summons is a sign of growing Chinese concern over the fate of the workers, three days after they were taken by militants in the South Kordofan region.
Sudanese state media reported Monday that 14 of them had been freed, but the official Xinhua News Agency and China Daily newspaper said all 29 were still being held.“The Chinese government attaches great importance to protecting overseas Chinese nationals. We felt deep shock over this abduction incident and are deeply concerned over the safety of the 29 Chinese,” Vice Foreign Minister Xie Hangsheng was quoted as saying in a statement posted on the ministry’s website.China hopes Sudan will “keep in mind the overall situation of bilateral friendship” and ensure their swift release, Xie told Sudanese Charge d’Affaires Omer Eisa Ahmed, according to the statement.It quoted Eisa as pledging Sudan’s full support.The summons was a rare public sign of tension in China’s close political and economic relations with Sudan, which center on exchanging Chinese infrastructure projects for access to Sudanese oil.

That followed the dispatch earlier Tuesday of a group of Chinese security experts to assist in the rescue work.

A statement from the workers’ company, Sinohydro Corp., said that it and the Chinese Embassy would “spare no effort in ensuring the personal safety of those abducted and rescuing them.”

Xinhua said 47 Chinese workers were caught in the attack in the South Kordofan region of Sudan. It said 29 were captured and the other 18 fled, and that one of those who fled remains missing.

Sudan’s state-run SUNA news agency said the attack took place near Abbasiya town, 390 miles (630 kilometers) south of Khartoum.

Sudanese officials have blamed the attack on the Sudan People’s Liberation Movement-North, a branch of a guerrilla movement that has fought various regimes in Khartoum for decades. Its members hail from a minority ethnic group now in control of much of South Sudan, which became the world’s newest country only six months ago in a breakaway from Sudan.

Sudan has accused South Sudan of arming pro-South Sudan groups in South Kordofan. The government of South Sudan says the accusations are a smoke screen intended to justify a future invasion of the South.

China has sent large numbers of workers to potentially unstable regions such as Sudan. Last year it was forced to send ships and planes to help with the emergency evacuation of 30,000 of its citizens from the fighting in Libya.

China has used its diplomatic clout to defend Sudan and its longtime leader, Omar al-Bashir. Recently, it has also sought to build good relations with leaders from the south.

South Sudan and Sudan are in bitter dispute over oil, which is produced primarily in South Sudan but runs through Sudanese pipelines for export.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

http://www.washingtonpost.com/world/asia-pacific/china-denies-that-any-of-its-29-workers-abducted-in-sudan-have-been-freed/2012/01/30/gIQAA8cedQ_story.html

China denies that any of its 29 workers abducted in Sudan have been freed
Washington Post
The workers were abducted Saturday by militants in a remote region in the country’s south.Sudanese state media reported Monday that 14 of them had been freed, but the official Xinhua News Agency and China Daily newspaper said all 29 were still being 

Laptops for South Sudan
Victoria Times Colonist
By Richard Watts, Times Colonist January 31, 2012 2:18 AM In newly independent South Sudan, where roads are dirt, electricity comes from portable generators and people live in earthen huts, there is still the Internet. That’s why Esquimalt resident 

Promote good relations between South Sudan media and security organs
Sudan Tribune
Recently South Sudan has come under international scrutiny after it detained journalists without charges and in inhumane conditions. A strong demand was made for the release of the journalists and indeed the journalists were released without any formal 

South Sudan official: Cattle raid kills 70; nation struggles to contain 
Washington Post
JUBA, South Sudan — An official in South Sudan says more than 70 people were killed in a recent cattle raid. Interior Minister Alison Manani Magaya said Monday that a Nuer tribe from Unity state attacked a Dinka community in neighboring Warrap state 

Marie Stopes International—South Sudan Abortion Clinic in Juba
Borglobe
By Dennis After 21 years of civil war in Sudan where millions of lives were lost, we would imagine that the most logical programme for the world’s youngest nation—South Sudan, would be one that promotes population growth to replace the lost lives…

JobsWASH Manager in South Sudan
Reuters AlertNet
Ensure Medair South Sudan guidelines, BA and HAP-I guidelines ensuring the standardised formats are used and guidelines followed in liaison with the M&E Officer. Support the implementation of projects in accordance with Medair, donor, Sudanese and 

Free press euphoria fading fast in South Sudan
Reuters
By Ulf Laessing | JUBA (Reuters) – Dengdit Ayok’s dream of a free press in Africa’s newest nation dissolved when he was arrested and beaten up after writing about the wedding of South SudanesePresident Salva Kiir’s daughter. In an article published in 

Israel to deport South Sudanese
Fox News
JERUSALEM — Israel’s Interior Ministry says thousands of people from South Sudan must leave or face deportation. Spokeswoman Sabine Haddad says since the Southern Sudanese have an independent state, they will no longer be given protected status in 

South Sudan – Fleeing to a Safer Place
Reuters AlertNet
BOR, South Sudan/GENEVA, 30 January 2012 – Manyok is the father of a Dinka family living in Jonglei State, South Sudan. He married his wife Rebecca two years ago and they have a one-year-old child. Rebecca’s father died many years ago, so when Manyok 

In South Sudan, a wave of tribal killings tests fragile independence
Washington Post
LIKUANGOLE, SOUTH SUDAN — Nothing is intact in this town, save the memories. Every hut was burned to the ground. The only health clinic and the only school were torched. Hundreds were killed or injured. Thousands more fled. The United Nations and 

UN urges Sudan, South Sudan to pull out of Abyei border region
Monsters and Critics.com
New York – The United Nations Monday called for Sudan and South Sudan to withdraw their security forces and police from the border region of Abyei because they interfered with the return of war-displaced people and nomadic migration.

Why the beleaguered hospitals of South Sudan are out for blood
The Guardian
A small fridge in the corner of Juba teaching hospital’s laboratory is the only blood bank in South Sudan. The world’s newest country has some of the worst health statistics in the world. Health workers say a lack of blood is the main cause of 

Sudan, South Sudan to resume oil talks on February 10
Press TV
The recent breakdown in the talks between Sudan and South Sudan in the High Level negotiations in Addis Ababa was a big shock for Sudan and the mediators. Oil was a major setback to the continued mediation for peace by the neighboring countries of 

S. Africa’s Month from Sudan to Syria, Missing Annex & Robben Island, AU Vote
Inner City Press
South Africa’s month atop the Council began with the UN in South Sudan failing to get “lethal assets to dissuade” attacks to Pibor, where an untold number of Murle people were killed. But Sudan quickly became overshadowed by Syria, to the extent that 

The recent breakdown in the talks between Sudan and South Sudan in the High Level negotiations in Addis Ababa was a big shock for Sudan and the mediators.

Oil was a major setback to the continued mediation for peace by the neighboring countries of Kenya and Ethiopia. The negotiations were headed by the African Union High-Level Panel on Sudan Thabo Mbeki – the former president of South Africa. The crux of the problem is the passage of the oil pipelines through Sudan and the non payment by the south to the north for such pipelines.
Though there seemed to be an all round consensus during the talks by both parties, the last minute turned around by South Sudan to refuse to sign the agreement apparently without giving any reason , resulted in the crumbling of all the efforts by the mediators for this deal.
The Negotiations discussed the economic file, oil, trade, and financial accounts.  The Head of the Sudanese Delegation Iddris Mohammed Abd AlGadir , who was present in Addis Ababa said that the negotiations will stop till solutions are found, he added that the negotiations will resume on the 10th of February.
Whereas Chairman of the Sudanese Oil Committee Al Zubair Mohammed Alhasan, was of the opinion that there is no cause for any concern as he was confident that a solution would soon be found as at the end of the day, both the countries were one till the recent past and it was just a matter of ironing out the creases. He added that the South want to overthrow the government by the support of the West.
Political analysts are very optimistic, they observe that both sides will reach an agreement at the end, and the mediator is playing a very big role.
South Sudan was exporting oil for about 5 months, since its separation on the 9th of July 2011through the north without paying fees for the pipelines nor the port fees.
Though an effort is on the region to ensure that peace is brokered, the sudden withdrawal by South casts many doubts whether this is a deliberate act with an ulterior motive or is just naivety which will soon be reversed. Only time will tell.

http://presstv.com/detail/223978.html


By Florence Tan

SINGAPORE (Reuters) – The shutdown in Sudanese oil supply could drive up already record premiums on spot crude markets as top Sudan customers China and Japan scramble for alternatives even as they weigh the impact on oil flows of international sanctions on Iran.

South Sudan has shut down its oil output, estimated at around 350,000 barrels per day (bpd), as it and neighbour Sudan row over how to disentangle their oil industries, borders and debt.

Before the shutdown, China imported most of that volume, bringing in around 260,000 bpd in 2011, according to Chinese customs data. That loss, in addition to cuts China has made in imports from Iran as Beijing and Tehran bicker over contract terms, has left China looking for alternatives equivalent to around 10 percent of its imports, or around 545,000 bpd.

“It will be a challenge to try to meet the shortfall in supply due to this sudden disruption as the overall quantity is not really that small,” said Victor Shum, senior partner at oil consultancy Purvin & Gertz said.

“Overall this is a tighter supply situation for Asian refiners.”

The regional spot market is unlikely to provide much relief because of limited availability due to a spurt in demand from Japan for power generation after a devastating earthquake crippled nuclear facilities last year.

The supply disruption has added to the rally, boosting spot premiums for March to a record. It could drive prices even higher — although any rise may be tempered by refinery maintenance in the second quarter.

Sudan on Sunday released vessels loaded with South Sudanese oil, but has yet to agree to more exports from the terminal.

The shutdown by South Sudan in protest has cut off supplies to equity holders China National Petroleum Corp (CNPC), Malaysia’s Petronas and India’s Oil & Natural Gas Corp.

“We expect some disruption in loading schedules with the production shutdown,” an official with one of the equity holders said. “We hope for a resolution soon.”

The heavy sweet grades — Nile and Dar Blend — produced in South Sudan are preferred in Japan for power production and by Chinese refineries. They are often blended to reduce sulphur content in fuel oil, a residue output from refining crude and mostly used for running ships, for sale to power utilities in markets such as Japan and Taiwan.

CHINA’S ALTERNATIVES

Overall, the Asia-Pacific region is net short of crude as output from aging fields in Indonesia and Vietnam declines and as producers divert output to meet rising domestic demand.

To make up for the loss from Iran, China has already been buying extra spot crude from Russia, West Africa, Middle East and also Vietnam in January and February.

“The disruption to crude imports from South Sudan has added to the reduction China has made in Iranian imports early in this year,” Roy Jordan, London-based analyst from FACTS Global Energy said. “That means it will have to look to other exporters in the Middle East and Atlantic Basin for replacement crudes.”

China has bought 10 percent more heavy sweet Angolan crude in March, pushing spot premiums for the highly acidic and heavy sweet Dalia — similar to Sudan’s Dar Blend in quality — to a premium from a discount, a trader said.

Australian heavy sweet grades are a good substitute for Sudan, but exports typically fall during the cyclone season every first quarter. Cyclone Iggy disrupted output last week as producers shut several oil fields offshore Western Australia.

China’s imports from Australia rose 42 percent in 2011 to 81,939 bpd, and gained 25 percent to 17,140 bpd from Vietnam.

China’s Unipec has increased spot imports of Russia’s ESPO to three cargoes a month while it recently bought February Urals crude as the arbitrage window opened.

Compounding problems for China is Japan’s additional demand for crude. The world’s third-largest oil consumer has been regularly snapping up the bulk of medium to heavy sweet crude from Vietnam and Indonesia, leaving little for the spot market.

JAPANESE DEMAND

Alternatives Japan may be looking for include Gabon’s Rabi Light crude and low-sulphur fuel oil, oil economist Osamu Fujisawa said. It has already started testing Rabi Blend, importing 600,000 to 1.2 million barrels a month from July.

Japan imported 48,847 bpd of Sudanese crude in the first 11 months of last year, up from 44,294 bpd in 2011. JX Nippon Oil & Energy and Mitsubishi Corp are the key importers.

Sudan is the second-largest supplier of sweet crude to Japan after Indonesia. Japan burns the oil at power plants.

FACTS Global Energy estimates Japanese crude purchases for use at power plants will be 200,000 to 300,000 bpd in the second quarter, rising from about 150,000 bpd now.

“Nile Blend is very popular for certain power plants in Japan as they form the baseload for thermal power generation,” a trader with a Japanese firm said. “It would be tough to replace the crude as any change in quality could affect the machinery,” he said.

Asia is importing record volumes of West African oil this year, rebuilding stocks after relatively low shipments in December, Reuters calculations showed.

A drop in Brent’s premium to Dubai to below $3 a barrel widened the arbitrage window, allowing more crude to flow from the Atlantic Basin to Asia.

“Overall, the Sudan volumes are not much in a global scale,” said Natalie Roberston, an analyst at ANZ. “But they are adding to the overall sentiment in a market worried about supply disruptions.”

© Thomson Reuters 2012 All rights reserved


JUBA/DUBAI | Mon Jan 30, 2012 4:52am EST

(Reuters) – Sudan released tankers loaded with South Sudanese oil that had been held at Port Sudan in a row over export transit fees, days after Khartoum seized crude from its new neighbor and offered it at a steeply discounted price.

Sudan’s Oil Minister Awad al-Jaz said the release came as part of efforts to reach an agreement with South Sudan on the transit fees, but so far “we don’t have any positive response from the other side.”

South Sudan has shut down oil output in protest at the seizing of the cargoes, and talks between the two to reach a settlement broke down over the weekend.

The former civil war foes have failed to agree the value of the fee landlocked South Sudan should pay to pump oil north by pipeline for export from Port Sudan.

“The four ships that were being detained were released yesterday at 5:00 p.m.,” South Sudan’s Minister of Petroleum and Mining Stephen Dhieu Dau said by telephone.

“They were carrying oil for Vitol and Sinopec.”

He added that 3.5 million barrels have been released but Sudan should now allow 5.4 million barrels to be lifted, indicating that the dispute was far from resolved.

“The ships are waiting,” said Dae. “If they want to negotiate in good faith with us they should allow us to come and lift it.”

The ships that have been released were already loaded and Sudan had held them from sailing. Separately, Sudan has sold off at least one tanker of crude seized from the South and has offered two other cargoes.

In addition to the three, at least seven tankers are still waiting at the port to lift December and January cargoes, raking up demurrage costs of $20,000-$22,000 per day, traders and shipbrokers said.

Two of the tankers that were freed were chartered by oil trading giant Vitol, an industry source told Reuters.

“The two tankers were freed on Sunday and they are carrying a total of 1.6 million barrels,” said the industry source, declining to be identified because he is not authorized to talk to the media.

Oil is the lifeline of both countries’ economies. The South controlled about 350,000 bpd of oil output when it became independent in July under a 2005 peace agreement that ended decades of civil war.

Oil provides about 98 percent of South Sudan’s income and is vital for developing an already poor country devastated by years of civil war.

China is the biggest buyer of oil from the two countries and the biggest investor in South Sudan’s oilfields.

(Reporting by Amena Bakr in DUBAI and Hereward Holland in JUBA; Editing by Manash Goswami)

http://www.reuters.com/article/2012/01/30/us-sudan-oil-idUSTRE80T0AQ20120130


January 27, 2012, 2:00 PM EST

By William Davison and Paul Richardson

Jan. 27 (Bloomberg) — South Sudan’s president, Salva Kiir, and Sudanese leader Umar al-Bashir failed to reach an agreement to end an oil dispute between the two countries that led South Sudan to start shutting down its crude production.

The negotiations are expected to continue at the Jan. 29-30 summit of the 54-nation African Union in Addis Ababa, Ethiopian Prime Minister Meles Zenawi told reporters today in the capital.

“In general terms I believe there is quite a lot of progress, but not enough for us to be able to clinch a deal now,” Meles said. The failure of the talks means South Sudan’s shutdown of oil production will continue, he said.

South Sudan has accused Sudan of seizing oil that passes through its territory to an export terminal on the Red Sea and has demanded $32 a barrel in transportation fees. South Sudan offered $1 a barrel. Sudan says it is diverting the crude to cover unpaid bills. Kiir said on Jan. 23 Sudan has “looted” $815 million worth of his country’s oil.

South Sudan took control of about three-quarters of Sudan’s output of 490,000 barrels a day when it gained independence from its northern neighbor in July. The crude is pumped mainly by China National Petroleum Corp., or CNPC, Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd.

The talks came after the African Union submitted a proposal, backed by the U.S. and China, to both leaders suggesting ways to end the dispute.

Chinese Imports

China imported about 250,000 barrels a day, or more than 65 percent of total Sudanese oil exports, accounting for 5 percent of the nation’s imports in 2010, according to data from the U.S. Energy Department.

South Sudan said on Jan. 25 that it has stopped output at more than 300 wells and there is “reduced production” at 600 more, cutting production to about 135,000 barrels per day from 275,000 barrels previously.

South Sudan’s “unilateral decision” to halt production “can only be stopped if there is an agreement,” Meles said.

The shutdown of output so far in South Sudan may have halted CNPC-operated production in Unity state, equivalent to about 150,000 barrels per day, Philippe de Pontet, Africa Director at New York-based Eurasia Group, said in a research report yesterday.

South Sudan’s chief negotiator at the talks, Pagan Amum, said the shutdown of the country’s output would be completed by tomorrow. Any agreement with Sudan would depend on the release of detained vessels ferrying “stolen” South Sudanese oil, and compensation for the siphoned crude, he said.

Once an agreement is reached, it will take about a week to bring production back to pre-shutdown levels, Amum said.

South Sudan says its government depends on oil for about 90 percent of its revenue.

–Editors: Karl Maier, Emily Bowers

To contact the reporters on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net; Paul Richardson in Nairobi at pmrichardson@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

http://www.businessweek.com/news/2012-01-27/sudan-south-sudan-end-talks-on-oil-dispute-without-accord.html

South Sudan oil shutdown continues after talks fail

Yara Bayoumy and Aaron MaashoReuters

1:02 p.m. CST, January 27, 2012

ADDIS ABABA (Reuters) – The presidents of Sudan and South Sudan failed Friday to resolve an oil dispute that has led to the shutdown of the South’s crude output and threatened both countries’ economies.The row centers on how much landlocked South Sudan, which became independent last year, should pay to send its oil exports through Sudan to a Red Sea port.Sudanese President Omar al-Bashir, using a walking stick, and South Sudan’s President Salva Kiir met on the sidelines of a meeting of East African officials in Ethiopia.The two discussed a deal that “would have frozen the situation and reverses the unilateral actions that had been taken by both,” a source close to the talks told Reuters on condition of anonymity.

However, the source said the talks broke down when Kiir pulled out.

Ethiopian Prime Minister Meles Zenawi, who chaired the East African meeting, said the two had agreed to sign a deal even though they had reservations on numerous points, according to the source.

“Then Salva said, ‘I regret to say that my delegation is still discussing the deal and I can’t sign’,” the source said.

South Sudan seceded in July under a 2005 peace deal that ended decades of civil war with Khartoum. It took with it about 75 percent of roughly 500,000 barrels per day of oil production.

Both countries depend heavily on oil and have put forward widely differing figures for a possible transit fee. Sudan has publicly proposed $36 per barrel, while South Sudan has listed figures under $1 per barrel.

The dispute heated up this month when Sudan said it was confiscating some oil exports from South Sudan to make up for what it called unpaid fees. In response, South Sudan said on January 20 it was shutting down its output.

WELLS SHUT DOWN

South Sudan’s oil minister Stephen Dhieu Dau said Friday that his country was continuing to shut down its oil output in protest at Sudan seizing part of its oil shipments.

“Now 50 percent of the wells are off,” he told reporters during a visit to the Palouge oil field in Upper Nile state. However, he did not say whether he was referring to the whole country or Upper Nile fields only.

In a sign of continuing acrimony, Dau also said Khartoum may have been diverting some oil from the fields which lay on the southern side of the border to feed its refinery in Khartoum. There was no immediate response to the accusation from Sudan.

An official at Petrodar, a consortium of mainly Chinese and Malaysian firms that produces much of South Sudan’s oil output, said the company had shut down around 250 of its wells, and expected to finish the shutdown in three days.

“The progress is going very smoothly and safely. The program is expected to finish in three more days,” Hago Bakheed Mahmoud, field operation manager for Petrodar, told reporters.

Petrodar was still pumping between 145,000 and 150,000 barrels per day and could resume its operations within three to four days if it was given instructions to do so, he added.

TALKS COLLAPSE

The negotiations that could lead to a reversal of the shutdown “have reached an impasse,” South Sudan’s chief negotiator Pagan Amum told reporters in Addis Ababa.

“The mood was not good because imagine you’re sitting with someone that’s stealing your property,” he said, adding the South’s output would cease by Saturday and that only cleaning and flushing the facilities would remain after that.

Sudan’s negotiators did not immediately comment.

Ethiopian leader Meles said the two sides hadn’t agreed on a deal yet, but oil would stay on the agenda in Addis Ababa, where the leaders of Somalia, Kenya and Ethiopia also met.

“It was agreed that the two parties will continue their negotiations during the summit. We have not come to conclusion as yet,” he told reporters.

Meles said an African Union mediating panel had proposed a “reversal of unilateral measures” taken by both sides, but did not spell out what that meant. “Many of those issues are agreed, but there are some sticking points,” he said.

According to oil industry sources, Sudan has already sold at least one cargo of crude seized from South Sudan at millions of dollars discount, and is offering more.

Sudan’s civil war was fought for most years from 1955 to 2005 over issues of ethnicity, religion, ideology and oil. An estimated 2 million people died in the conflict.

Southerners voted overwhelmingly to secede in a referendum held last year in January.

(Reporting by Aaron Maasho and Yara Bayoumy; Additional reporting by Hereward Holland in Palouge; Writing by Alexander Dziadosz; Editing by David Stamp)

Sudan, South Sudan Oil Talks End Without Agreement

LONDON (Dow Jones)–Negotiations between Sudan President Omar al-Bashir and South Sudan President Salva Kiir to resolve a long-standing dispute of oil transit fees ended without agreement, David Kong, deputy of mission at South Sudan’s embassy in Ethiopia, told Dow Jones Newswires on Friday.

“No agreement was reached, but our president says negotiations will continue,” Kong said, adding that South Sudan would go ahead with its plans to shut down oil production.

The meeting, which took place in the Ethiopian capital of Addis Ababa on Friday, marked the latest attempt to negotiate an agreement between the two sides in a long-standing dispute over oil transit fees.

South Sudan split from Sudan in July, taking with it some 75% of the former country’s oil production. However, South Sudan lacks the infrastructure to export the oil and has been left dependent on pipelines that flow through Sudan.

The neighbors have been unable to agree on a suitable fee for the use of these pipelines, and the resulting dispute has become increasingly tense, causing severe disruptions to South Sudan’s oil exports.

-By Sarah Kent, Dow Jones Newswires; 44 20 7842 9376; sarah.kent@dowjones.com

http://online.wsj.com/article/BT-CO-20120127-712921.html

Sudan, South Sudan leaders fail to reach oil deal

Fri Jan 27, 2012 5:33pm GMT
South Sudan's President Salva Kiir (L) and Sudan's President Omar Hassan al-Bashir attend the Independence Day ceremony in South Sudan's capital Juba July 9, 2011.    REUTERS/Thomas Mukoya

By Yara Bayoumy and Aaron Maasho

ADDIS ABABA (Reuters) – The presidents of Sudan and South Sudan failed on Friday to resolve an oil dispute that has led to the shutdown of the South’s crude output and threatened both countries’ economies.

The row centres on how much landlocked South Sudan, which became independent last year, should pay to send its oil exports through Sudan to a Red Sea port.

Sudanese President Omar al-Bashir, using a walking stick, and South Sudan’s President Salva Kiir met on the sidelines of a meeting of East African officials in Ethiopia.

The two discussed a deal that “would have frozen the situation and reverses the unilateral actions that had been taken by both”, a source close to the talks told Reuters.

However, the source said the talks broke down when Kiir pulled out.

Ethiopian Prime Minister Meles Zenawi, who chaired the East African meeting, said the two had agreed to sign a deal even though they had reservations on numerous points, according to the source.

“Then Salva said, ‘I regret to say that my delegation is still discussing the deal and I can’t sign’,” the source quoted Zenawi as saying.

South Sudan seceded in July under a 2005 peace deal that ended decades of civil war with Khartoum. It took with it about 75 percent of roughly 500,000 barrels per day of oil production.

Both countries depend heavily on oil and have put forward widely differing figures for a possible transit fee. Sudan has publicly proposed $36 per barrel, while South Sudan has listed figures under $1 per barrel.

The dispute heated up this month when Sudan said it was confiscating some oil exports from South Sudan to make up for what it called unpaid fees. In response, South Sudan said on January 20 it was shutting down its output.

WELLS SHUT DOWN

South Sudan’s oil minister Stephen Dhieu Dau said on Friday that his country was continuing to shut down its oil output in protest at Sudan seizing part of its oil shipments.

“Now 50 percent of the wells are off,” he told reporters during a visit to the Palouge oil field in Upper Nile state. However, he did not say whether he was referring to the whole country or Upper Nile fields only.

Zenawi said the two sides hadn’t agreed on a deal yet, but oil would stay on the agenda in Addis Ababa, where the leaders of Somalia, Kenya and Ethiopia also met.

“It was agreed that the two parties will continue their negotiations during the summit. We have not come to conclusion as yet,” he told reporters.

Zenawi said an African Union mediating panel had proposed a “reversal of unilateral measures” taken by both sides, but did not spell out what that meant. “Many of those issues are agreed, but there are some sticking points,” he said.

According to oil industry sources, Sudan has already sold at least one cargo of crude seized from South Sudan at millions of dollars discount, and is offering more.

Sudan’s civil war was fought for most years from 1955 to 2005 over issues of ethnicity, religion, ideology and oil. An estimated 2 million people died in the conflict.

Southerners voted overwhelmingly to secede in a referendum held last year in January.

http://af.reuters.com/article/investingNews/idAFJOE80Q0BO20120127?feedType=RSS&feedName=investingNews&sp=true


Dear Esteemed Readers,

Here are two opposing views on South Sudan current decision to shut down oil production in response to Khartoum illegal confiscation of South Sudan oil. 

The first article by Steve Paterno, a US-based South Sudanese and the author of “The Rev. Fr. Saturnino Lohure, A Romain Catholic Priest Turned Rebel” argues that the decision by South Sudanese government to react to Khartoum’s action by threatening to shut down oil production in the South Sudan is not wise for various reasons outlined in the article. 

The second article by Makwei Mabioor Deng  from the SPLM-Diaspora Forum is essentially a counter-response to Paterno’s argument. It maintains that Juba response is appropriate and warranted given the circumstances. 

Enjoy!! 

PaanLuel Wel.

South Sudan shutdown of oil production not wise

By Steve Paterno

January 22, 2012 — South Sudanese leaders are always accustomed to blaming the Northern Sudanese rulers and in the process forgetting their own responsibilities and faults. However, they will not continue to shift the blames as they will be demanded to own up to their responsibilities. For the last six years, South Sudan has been relying entirely on oil revenue for its budgetary needs. Nonetheless, no one South Sudanese leader bothered to push for investment in the oil industry, which is actually the only source of revenue. Instead, much of this oil money is squandered through rampant corruption, shady contract deals, and gross mismanagement.

When South Sudan obtained its independence last July, the new state found itself with only oil wells, but nothing else. The oil refineries are laying in the North. The pipelines for transporting the oil to the world market cross through the North. Oil workers with the most expertise who are Northerners, decamped. The few South Sudanese workers who are left behind can hardly cope up with the workload. Even their basic necessity such as food rations, which were supplied to them from the North are now dwindling. This resulted into a drastic reduction of South Sudanese oil output for the last several months.

Knowing too well that South Sudan is facing such serious dilemma, Sudan government and oil companies resorted into blackmailing and extorting South Sudan to paying huge and unreasonable charged fees for facilities and land usage. Since then, both South Sudan and Sudan could not agree on the amount. Faced with the standoff, Sudan unilaterally enacted a legislation, legally empowering its ministry of energy to confiscate South Sudanese oil as it deems necessary so as to compensate for what Sudan considers to be the charges.

This unilateral move compels South Sudan to plan for the shutdown of all its oil production, while it seeks alternative transportation routes. Even though the shutdown will deny Sudan certain percentage of revenues, it actually adversely affects South Sudan more. For Sudan, South Sudan is calling a bluff, since it has no alternatives, at least in the foreseeable future. So, Khartoum lies and wait for South Sudan to come running back. The compounding challenges facing South Sudan are quite enormous.

First, South Sudan is depending almost a hundred percent on oil revenue. The country cannot afford to survive without the oil revenue. To make matters worse, a bulk of South Sudanese budget is spent on salaries. This will mean even a minor halt or adjustment in oil revenue generation can negatively reflects on the employees who expect their salaries on monthly basis.

Second, South Sudan can never be able to switch quickly from an oil revenue base economy into another source of revenue generating economy. The taxation system which is supposed to be an alternative and is estimated in billions is in state of disarray. Few well placed individuals are actually pocketing the collected tax revenues, while the other potentially taxable sources are untouched. Agriculture, which is a quintessential for South Sudanese livelihood and would have been great source of revenue is left in waste. South Sudanese import their food from their neighboring countries, including from the Sudan. Very soon, with the lost of oil revenue, many people, especially the salaried employees will have no more money to purchase those expensive imported food. With the world financial crunch, international donations are hardly coming in.

Besides, those international aids come with strings attached, the conditions that South Sudan can barely meet, since it has no system for accountability. The only readily available option for South Sudan for a financial rescued package are loans. But why spend and even squander the money you don’t have, which will create huge burden to the South Sudanese posterity and hinder the potential for future growth.

Third, for South Sudan to seek alternative routes for transporting its oil for sale, it is rather a long term plan, not a quick fix to the current crisis the country is facing. First of all, if there is such a plan of constructing a pipeline or building a railroad, it must address the current issues as well as considering all the future implications of such a plan. Secondly, the plan will require enormous amount of time from the day it is envisioned to the day it is finalized and ready to be operational. Thirdly, this plan will cost a substantial amount of money—the money South Sudan is losing currently through lost of oil revenue, corruption, and mismanagement.

Let the South Sudanese leaders be realistic on handling this crisis by embarking on practical solutions than trying to be sentimental. Just last December South Sudanese Vice President Riek Machar announced a grandiose plan of making South Sudan the ’hub’ of seaports shipments in Africa, connected by highways, railroads, airports and the likes. This fantasized plan, which sounds more like a joke, is coming from a leader of a country that cannot even transport its own oil—the oil that the country feeds on—a clear indication that some of these South Sudanese leaders are totally out of sync with the reality. In this case, the notion of prioritization is replaced with romanticized ideas.

What South Sudan needs now is not some absurd and baloney plans, but rather a political will and negotiating skills to strike a quick deal with Sudan on an interim basis. Such an agreement should not be permanent. It must be subject to renewal within a given short period of time, while the negotiations between the two countries continue until a permanent agreeable solution is found. This is the only viable alternative that can guarantee South Sudan continuous flow of revenue as oppose to the total shutdown of the only source of revenue. As South Sudan is pursuing alternative routes for transporting its oil, it must ensure proper management of its finances by clambering down on corruption and making sound investments along the way. The country must then simultaneously seek ways to diversify its economy so as to avoid over reliance on oil as the only source of revenue. After all, the oil is not going to be there forever. With that said, South Sudan has more to lose under the current prevailing situation.

Steve Paterno is the author of The Rev. Fr. Saturnino Lohure, A Romain Catholic Priest Turned Rebel. He can be reached at stevepaterno@yahoo.com

http://www.sudantribune.com/South-Sudan-shutdown-of-oil,41369

South Sudan Shutdown of Oil Production is the Wise Decision.

By Makwei Mabioor Deng

January 22, 2012

Dear Steve Paterno,

Any other GOSS’ ineptness aside, I don’t believe that the call by Juba government to have the oil production shut down is entirely based on sheer “appeal to the general public on emotions than reasons.”

State-to-state negotiation, your point of contention as per your article on Sudan Tribune and an earlier response to Mary Lodira, is what the two parties have been engaging in all these years to no avail.

As you very well know, the absent of any breakthrough in the talks is due mainly to Khartoum’s insistence on asking for $36 a barrel for the usage of their oil facilities while the GROSS team is only willing to consider 70 cent dollars per barrel, something closer to the international charges of about 40 cent dollars per barrel as reported by the media.

Negotiation between the two parties was to continue till Khartoum government took a unilateral decision to secretly confiscate South Sudan’s oil in collusion with some certain foreign companies. It were the same foreign companies, out of shame and guilt to their conscience, who ended up blowing the lid over the dark deal.

In the face of this blatant and unprovoked unilateral decision, and with Khartoum having no economic and political incentives left to agree to any possible settlement from Addis Ababa as they are already getting more than they could get under mutual certified agreement, how do you expect President Kiir and VP Machar to react given Khartoum previous dishonest dealings with South Sudanese?

A concrete, reasonable response was inevitable given the high stake of the situation and what the GROSS did, in my opinion, is appropriate and called for under the circumstances.  How could anyone expect the Khartoum government to agree and sign up to anything when they are freely siphoning off South Sudan’s oil?  They have no incentive whatsoever to agree to anything proposed by Juba government.

Conceivably, just in case no action was taken by Juba, Khartoum may have even decided to rachet up matters by rescinding on their earlier request of $36 a barrel just to delay and frustrate the negotiation while they would continue to confiscate South Sudan’s oil in the name of unpaid fees. It would drag on forever, just like the Abyei case and South Sudan oil would practically belong to the North.

If anything, Khartoum government has already indicated that any agreement on oil is contingent on border issues and the question of alleged Juba support for SPLM-North and Darfur rebels, something that Juba has been vehemently denying for a long time. Who knows, it may even get tied to the resolution of Abyei dispute, and God knows, anything else that may crop up along the way (say Arab Spring in Khartoum blamable on Juba).

I can’t quite figure it out why you would chose to validate Khartoum line of argument that they had formally informed Juba about their decision to forcefully confiscate the oil. There is a difference between threats issued calculatively to put the other negotiating party under duress to make them feel the pressure and buckle and an official statement conveying the intention of the party in question. Khartoum’s threats are parts of their broader official fire barrages to gain mileage either against Juba, SPLM-North or Darfur rebels.

Of course, Juba action carries risks. It would be hard to run the government in the short term, not all South Sudanese oilfields will get shutdown as some fall within the disputed borderlines, and above all, unilateralism from both sides will definitely preclude any successful conclusion of the negotiation process between the two parties.

Still, Khartoum introduced unilateralism when no one denied ever compensating them for their reportedly unpaid fees. Or if you believe Juba account of event, then they have already been re-imbursed and therefore whatever that they are presently engaging in is their old dirty game against Junub Sudan.

Thus, notwithstandings the risks entail in the action, Juba government’s decision to take Khartoum by their threat and shutdown the oilfields is the best decision that has ever come out of Juba since the formation of GOSS in 2005.

Illegality and broad-daylight robbery cannot be rewarded with inaction and silence lest it would defeat logic to continue to proclaim the independence and sovereignty of the republic of South Sudan.

Surely, It will go all the way to serve as a precendential warning against any East African nation that might be tempted to take up Khartoum dirty games of economic sabotage and political blackmailing!!

Thanks,
Makwei.

Source: SPLM/NEW-Sudan Forum


(AFP) – 

WASHINGTON — The United States urged Sudan and South Sudan to redouble efforts to resolve a crisis over fees for oil transfers and said it supported a proposal by African Union mediators.

The statement by State Department spokeswoman Victoria Nuland came a day after South Sudan ordered a shutdown of its oil production because Sudan has seized oil transiting its territory.

She said Washington supports the African Union High-Level Implementation Panel’s roadmap for an agreement to resolve the crisis and set a timeline for a final oil and financial agreement between the two countries.

“We further urge the parties to redouble their efforts to reach an agreement on permanent oil and financial arrangements as the impending crisis threatens not only the flow of oil but also long term damage to infrastructure,” she said.

“Therefore an agreement that addresses the current crisis has become necessary and is in the interests of both countries,” Nuland said.

She said resumption of normal oil shipments was critical to stabilize the economies of both countries.

The South split from Sudan in July, taking with it 75 percent of the country’s oil production of 470,000 barrels per day, but despite its oil wealth, the new state of South Sudan lacks the infrastructure to refine and export oil.

Crucial facilities including a pipeline and Red Sea export terminal remain in Sudan, leaving the two states arguing over how much the south should pay to use the infrastructure.

Sudanese authorities recently stopped two ships loaded with 650,000 barrels of South Sudanese oil from leaving the export terminal because they did not pay the port fees, according to Khartoum’s foreign ministry.

http://www.google.com/hostednews/afp/article/ALeqM5gJ8uxUB_yXIfmWECqblQklhF7Xdw?docId=CNG.ed2a687c0642d8185d1e4e7ccab9f2c3.951

China Urges Calm Talk for Sudan, South Sudan

By SIMON HALL

BEIJING—China on Saturday urged the governments of Sudan and South Sudan to remain calm and restrained and resolve their differences over oil exports through “negotiation at an early date.”

“Oil is the economic lifeline shared by Sudan and South Sudan,” Chinese Foreign Ministry Spokesman Liu Weimin said in remarks posted on the ministry’s website, adding that the Beijing government “hopes that the two governments will fulfill their commitment to protecting the legal rights of Chinese enterprises and those of other partners.”

The ministry noted that on Friday the government of South Sudan had ordered the gradual halt of all oil production due to a disagreement with Sudan over fees for moving South Sudan’s oil via Sudan’s pipelines and harbors.

“We urge the two sides to remain calm and restrained, avoid taking any extreme action and continue working together with mediation by the African Union and other parties to resolve their dispute through negotiation at an early date and to benefit the two countries and their peoples,” Mr. Liu said.

South Sudan, which broke away from Sudan and became an independent country in July 2011 after decades of civil war, has accused Sudan of disrupting its oil exports and of stealing some of its oil. The two countries produce about 500,000 barrels of crude oil a day, approximately 75% of it South Sudan’s.

State-owned China National Petroleum Corp., India’s Oil and Natural Gas Corp. and Malaysia’s Petroliam Nasional Bhd., or Petronas, account for around 90% of the combined oil production in the two countries. The Chinese company is the largest foreign investor in the two countries’ energy sectors, and China takes about half of their oil exports.

Official customs data show China’s imports of oil from the two have ranged between 200,000 barrels and 280,000 barrels a day in recent months. The 2010 average was 253,000 barrels.

On Tuesday, South Sudan accused Sudan of preventing the export of its oil, which had been piped to Port Sudan in the north, and of loading some of it onto Sudanese-flagged ships.

Write to Simon Hall at simon.hall@dowjones.com

http://online.wsj.com/article/SB10001424052970204301404577174591034411010.html?mod=googlenews_wsj

Related articles


  • Azhari Abdalla, director general of the Sudanese oil ministry's Oil Exploration and Production Authority, points to a map as he briefs journalists in Khartoum, December 19, 2011.
Photo: AFP
South Sudan Accuses Sudan of Stealing Oil

Peter Heinlein | Addis Ababa, Ethiopia

Azhari Abdalla, director general of the Sudanese oil ministry’s Oil Exploration and Production Authority, points to a map as he briefs journalists in Khartoum, December 19, 2011.

South Sudan on Tuesday accused its northern neighbor Sudan of stealing more than 2.1 million barrels of oil, and warned buyers and shippers that they might face prosecution. The accusation has cast a pall over a new round of talks on sharing oil revenues.

South Sudan’s chief negotiator at the African Union-mediated talks accused the Khartoum government of confiscating and selling southern oil, saying it is creating an economic and political crisis.

The oil is shipped from landlocked Southern Sudan by pipeline to Port Sudan, where it is loaded onto ships for export. The two countries produce about 500,000 barrels of oil a day.

Disputed oil transit fees

The Khartoum government this week said it would take part of the south’s oil as compensation for transit fees, pending settlement of their dispute over how much the payments should be.

Southern negotiator Pagan Amoum on Tuesday showed reporters documents indicating that the north has seized three oil shipments in recent days worth more than $200 million. He said the action threatens to end the north-south talks.

“The government of Sudan, as we speak, has completed loading the stolen oil onto its vessels that now have cargo of stolen oil of South Sudan. This represents some $140 million of property of the people of South Sudan being taken away. And if you add the 750,000 [barrels] that may be starting to be loading today or tomorrow morning, it will amount to $215 million. This is an act of state piracy,” said Amoum.

Oil-revenue sharing disagreement

As the talks were set to begin on Tuesday, the two sides remained far apart over the amount of oil revenue to be shared. The south has offered to pay a transit fee of less than $1 a barrel; Khartoum is asking for more than $32 a barrel.

Amoum said the north has blocked southern oil from leaving Port Sudan since December 25. He told reporters that Sudanese President Omar al-Bashir is risking a return to war by refusing to negotiate in good faith.

“President Bashir has become a danger to regional peace, and he’s taking all what he wants whenever he wants at whims. This is not the way a responsible state within the international community operates, especially one that is trying to normalize relations with so many of the countries of the world. The government of Sudan has made clumsy pretexts in a thinly veiled attempt to justify its thievery,” said Amoum.

South Sudan’s warning

South Sudan Justice Minister John Luke warned that anyone buying stolen oil would be held responsible. He said investigations have already identified the companies that are purchasing the confiscated oil.

“We also would like to put the companies that are buying this illegally gotten oil of Southern Sudan from the government of Khartoum to a be on legal notice that this is the property of the Republic of Southern Sudan. And by dealing it and purchasing it, they are purchasing property to which the government of Sudan does not have any legal title and for that matter they will be subject to litigation,” said Luke.

Oil is considered the backbone of the economies of Sudan and South Sudan. The south took more than 70 percent of the region’s oil resources when it broke away from the north last July. But the oil can be exported only through the north.

China is the biggest investor in South Sudan’s growing oil sector, and the largest consumer of Sudanese crude.

http://www.voanews.com/english/news/africa/South-Sudan-Accuses-Sudan-of-Stealing-Oil-137520138.html

South Sudan accuses Sudan of stealing 120,000 barrels of oil a day

By Associated Press, Published: January 17

JUBA, South Sudan — South Sudan’s oil minister on Tuesday accused northern neighbor Sudan of stealing massive amounts of the south’s oil, an accusation that comes the same day the two sides are to begin another round of negotiations over their formerly unified oil industry.
South Sudan’s Minister of Petroleum and Mining Stephen Dhieu Dau told The Associated Press on Tuesday that Sudan is each day diverting about 120,000 barrels of oil pumped from the south through a recently constructed “tie-in” pipeline.
“This amounts to nearly 75 percent of the oil of South Sudan” being pumped through the line, Dau said.South Sudan broke away from Sudan in July to become the world’s newest country, and took about three-fourths of what had been Sudan’s 500,000-barrel-a-day oil industry with it.Oil runs both countries’ economies, and the south’s oil must run through Sudan’s pipelines to get to port. But the two sides are nowhere near a deal on how to share revenues.

Dau’s accusation comes just days after the government of Sudan announced that it was taking southern oil in lieu of pipeline transit fees it says the south is not paying. Oil officials in Khartoum said they began taking southern oil in December, but would not specify how much oil was being taken.

Dau said the seizures at Port Sudan coupled with the oil taken from the new pipeline amounted to nearly all of South Sudan’s shares of oil pumped from its territory.

“This is a crime and it is a threat to peace and security,” said Dau.

The two countries were to begin negotiations on Tuesday in Ethiopia primarily over the transit fees that South Sudan will pay to use the northern pipelines. South Sudan has offered to pay an average of $0.70 per barrel for the use of the two pipelines, but Khartoum has asked for $36 per barrel.

Khartoum’s chief negotiator Sabir Mohammed Al-Hassan said Sunday the figure includes other fees that South Sudan will be required to pay, such as transportation fees, a transit fee, and a marine terminal fee.

But South Sudanese officials say the levies amount to theft. Dau warned that the south would take legal action against any foreign oil companies caught buying “the stolen oil.”

Pagan Amum, the secretary general of South Sudan’s ruling party, said on the sidelines of scheduled oil talks in Ethiopia that the theft of billions of dollars worth of oil by Sudan would probably cause the talks to collapse.

“Sudan should take note that the south’s patience is close to reaching its expiration period,” Amum said.

Amum said that Sudan is stealing oil “that would be the equivalent of purchasing two new pipelines a year, every year.” Amum said an oil company on Monday alerted the south’s government of another 750,000 stolen barrels worth $140 million.

Amum said the north has repeatedly threatened oil companies to load southern oil into its vessels. Copies of letters that backed these claims were distributed to journalists at a news conference.

Despite the difficulties, South Sudan is trying to expand its oil industry. Last week it signed its first post-independence oil deals with the state petroleum companies of China, India and Malaysia for oil-producing concessions in Unity and Upper Nile states. The agreements replaced exploration and production agreements made previously with the government of Sudan.

___

Associated Press reporter Luc van Kemenade in Addis Ababa, Ethiopia contributed to this report.

Copyright 2012 The Associated Press. All rights reserved.

http://www.washingtonpost.com/world/middle-east/south-sudan-accuses-sudan-of-stealing-120000-barrels-of-oil-a-day-talks-open-in-ethiopia/2012/01/17/gIQA4nAE5P_story.html

Sudan – South Sudan Negotiations Resume

Written by: 

January 17, 2012

Economic issues, primarily the division of oil revenues, are expected to dominate today in Addis Ababa the negotiations between Sudan and South Sudan on the issues left unresolved since independence in Juba, said the minister and presidential adviser Mohamed Abdul-Gadir.

According to the Sudanese representative, quoted by the official press “SUNA” during talks mediated by the African Union, South Sudan will be asked to pay six billion dollars in arrears to the use of pipelines oriented toward the Red Sea.

The division of Sudan in July last year has necessitated a new compromise on oil revenues after the expiry of the peace accords of 2005 which provided for a division on an equal basis.

The oil is mostly concentrated in the southern oil fields, but it can only be sold and delivered to international markets via the pipelines linking the oil to the north.

Khartoum is seeking payment of a transit fee of USD35 per barrel, while Juba is offering 74 cents with the addition of an initial allocation of two and a half billion dollars.

The tensions between the ‘Sudans’ grew over the past weekend, with Khartoum announcing that it had taken and sold 650,000 barrels from the south. In addition to oil, in the Ethiopian capital until next Monday, there will be a discussion over foreign debt and trade agreements.

A key issue on a humanitarian level risks being ignored, in a period characterized by a series of other armed clashes. The enduring conflict along the borders of two countries: the legal status of some 700,000 South Sudanese migrants, who, in the absence of an agreement, in April could be expelled from Khartoum and other northern regions where they have worked and lived or years.

About the author:MISNA, or the Missionary International Service News Agency, provides daily news ‘from, about and for’ the ‘world’s Souths’, not just in the geographical sense, since December 1997.http://www.eurasiareview.com/17012012-sudan-south-sudan-negotiations-resume/

 

By Jared Ferrie

(Updates with comment by oil minister from seventh paragraph.)

Jan. 13 (Bloomberg) — South Sudan said the operators of a pipeline that carries its oil exports to Port Sudan have warned the facility may be closed in two days unless a blockade being imposed by neighboring Sudan on its shipments is lifted.

Sudan’s government would be “responsible for any damages that will follow that shut down,” South Sudanese Oil Minister Stephen Dhieu Dau told reporters today in Juba, the capital.

South Sudan on Jan. 10 accused Sudan of blocking 3.4 million barrels of its oil exports and said the northern neighbour is also seeking to divert the flow of some of its crude by building a new pipeline.

Sudan’s Foreign Ministry said it prevented the vessels from leaving international waters in the Red Sea because they failed to pay port fees. The new oil pipeline is for use in the future, when the government plans to “buy or take over part of our dues from the south in crude, after reaching a final oil agreement,” it said on Jan. 11.

South Sudan assumed control of about three-quarters of Sudan’s output of 490,000 barrels a day when it seceded on July 9 after an independence referendum. Talks since then have failed to yield an agreement on the amount landlocked South Sudan will pay to transport its oil through a pipeline across Sudan.

The two sides failed to reach an agreement on the oil dispute in talks last month. Further African Union-sponsored negotiations are scheduled to take place from Jan. 17 to Jan. 23 in Addis Ababa, the capital of Ethiopia.

Double Oil Output

Dau also said South Sudan plans to double oil production to 700,000 barrels per day in five years. For that increase to happen, the country would need to build a new oil pipeline because the current one doesn’t have sufficient capacity, he said. South Sudan also doesn’t want to be dependent on Sudan for its oil to be exported, Dau said.

“We must plan to diversify the routes,” he said. “You should not put all your eggs in one basket.” South Sudan has previously said it is exploring routes through Kenya and Ethiopia.

South Sudan’s government earlier today signed exploration and production-sharing agreements with six companies including China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd and India’s Oil & Natural Gas Corp. for six blocks in the East African country. Foreign oil companies have been operating without signed accords since South Sudan’s independence.

The state also plans to negotiate with companies that have agreements for non-producing blocks signed with companies before independence.

“We believe some of these companies have overstayed on those blocks without doing anything and even the ownership of these blocks is in question,” Dau said. “As a sovereign state we will not abide by contracts signed by the Republic of Sudan.”

–Editors: Paul Richardson, Antony Sguazzin.

To contact the reporter on this story: Jared Ferrie at jferrie1@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.

http://www.businessweek.com/news/2012-01-13/south-sudan-says-oil-pipeline-may-close-on-sudan-blockade.html

South Sudan Says Oil Pipeline May Close on Sudan Blockade
BusinessWeek
13 (Bloomberg) — South Sudan said the operators of a pipeline that carries its oil exports to Port Sudan have warned the facility may be closed in two days unless a blockade being imposed by neighboring Sudan on its shipments is lifted. 

S.Sudan warns pipe may shut in oil row with Khartoum
TrustLaw
By Hereward Holland JUBA , Jan 13 (Reuters) – South Sudan said on Friday that a pipeline to north Sudan carrying its crude oil exports may have to shut down within two days because Khartoum was blocking oil shipments. Sudan itself accused the 

Ethiopia Awaits Influx of Refugees from Sudan and South Sudan
Voice of America
January 13, 2012 Ethiopia Awaits Influx of Refugees from Sudan and South Sudan Joe DeCapua Humanitarian agencies are preparing for an influx of refugees into Ethiopia from both Sudan andSouth Sudan. Civilians, mostly women and children, 

Children among 57 killed in South Sudan tribal clashes
Reuters
JUBA (Reuters) – At least 57 people, most of them women and children, were killed in tribal clashes on Wednesday in South Sudan’s vast Jonglei state, the latest deaths in a cycle of ethnic violence displacing 60000 people, the government said Friday. 

JobsConsultant – Evaluation of Merlin South Sudan programme
Reuters AlertNet
Merlin has been working in Southern Sudan since 1998 and has had a continuous presence in the country since 2004, with an office in Juba. Merlin has worked in Upper Nile, Jonglei, and Eastern Equatoria States. Merlin has expanded its support to primary 


In Khartoum, Yang Jiechi said Beijing would continue to support Sudan

China’s foreign minister is to arrive in South Sudan – the first high-level visit since independence in July.

SUDAN-YANG JICHI-ALI KARTI-MEETING

Chinese Foreign Minister Yang Jiechi (3rd R) meets with Sudanese Foreign Minister Ali Karti (3rd L) in Khartoum, Sudan, Aug. 8, 2011. (Xinhua/Mohammed Babiker

Yang Jiechi is expected to urge the government in Juba to develop a better relationship with Sudan.

Mr Yang expressed similar views during his talks with Sudanese President Omar al-Bashir earlier this week.

China – which is heavily involved in Sudanese oil extraction – has been a strong supporter of Mr Bashir, despite claims of Sudan’s war crimes in Darfur.

‘Urgent solutions’

Mr Yang’s visit comes one month to the day after South Sudan became independent.

Beijing’s links to Khartoum have been strong in recent years, but the Chinese have made an effort to improve their ties with Juba too, the BBC’s James Copnall in Khartoum reports.

Last year, Sudan as a whole was the sixth largest source of oil imports of China, and now three-quarters of that oil belongs to South Sudan.

However, South Sudan has to export all its oil via the north because it has no port or refineries of its own. The two sides have so far failed to agree on transit fees, or how to share oil revenue.

The visit comes after Sudan last week released a cargo of South Sudanese oil it had blocked in a row over custom duties.

During his two-day visit to Khartoum which ended on Monday, Mr Yang urged both the north and the south to find “urgent solutions” to their outstanding differences for the sake of stability.

“We hope that Sudan and South Sudan will have good neighbourly relations based on the exchange of benefits,” he said.

He also announced a 100 million yuan ($15.6m; £9.5m) interest-free loan to Khartoum, Reuters news agency reports.

Relations between the two states remain tense.

South Sudan’s independence follows decades of north-south conflict, which ended with a 2005 peace deal.

President Kiir meets with Chinese Foreign minister Mr. Yang Jiechi

By Thomas Kenneth: Juba, South Sudan

President Kiir: South Sudan has no problem with existing Oil Contracts between China and Khartoum but the contracts must be reviewed for South Sudan is now an Independent state.
The President of the Republic of South Sudan H.E Gen. Salva Kiir Mayardit said the South Sudan will have no problems with the existing oil contracts between China and the Government of Khartoum, but the contracts must be reviewed for South Sudan is now an independent State. President Kiir made the remarks during his meeting today August 9th, 2011 with the Chinese Foreign Minister Mr. Yang Jiechi who led a high level delegation to South Sudan.
President Kiir pledge that South Sudan will maintain good relationship with the North, and urged Chinese Government to tell President El-Bahir not to block the Oil pipe lines. President of the Republic called on China to build infrastructure of the young Nation of South Sudan in the fields of Education, Health Roads and Agriculture Sector.
The Foreign minister of the People’s Republic of China Mr. Yang Jiechi said in a press statement after his meeting with President of the Republic that, the relationship between China and south Sudan has started since forty years ago in medical and Agricultural fields, and China has a great potential for furthering friendly cooperation with the Republic of South Sudan. He told the press that during the meeting he extended invitation of the President of the People’s Republic of China H.E Hu Jing Tao to President Kiir to visit China within this year that is because China would like to keep up a high level contacts and exchange of visits between the two sides in in different field including inter parliamentary relationship, party to party, Education, provincial and municipal exchange.
Concerning the field of Economy and trade relationship, Chinese minister of foreign Affairs said china is ready to cooperate with the new Republic of South Sudan in the field of Agriculture, infrastructure construction, oil production. Adding that China is ready to uplift the living capacity of the people of south Sudan
On his part, South Sudan minister for foreign Affairs H.E Deng Alor said the visit of Chinese minister of foreign Affairs to Juba will set up a special relationship between South Sudan and People’s Republic of China. He explained to the Press that President’s meeting with Chinese delegation covered a range of cooperation issues in the areas of economy political and regional development. H.E Alor assured that South Sudan is going to cooperate with China since south Sudan is in need of building its infrastructure.
By. Thomas Kenneth/ P.P.U/RSS/Juba/09-8-2011
Sudan, China pledge to strenghten ties
English.news.cn   2011-08-09 10:47:31
SUDAN-CHINA-DIPLOMACY

Visiting Chinese Foreign Minister Yang Jiechi (1st L) meets with Sudanese President Omar al-Bashir (C) in Khartoum, Sudan, Aug. 8, 2011. (Xinhua/Mohammed Babiker)

KHARTOUM, Aug. 8 (Xinhua) — Sudanese President Omar al-Bashir met Chinese Foreign Minister Yang Jiechi on Monday and they expressed will to cement bilateral ties.

Al-Bashir said China is Sudan’s real friend and good partner. It supports Sudan in exploiting oil fields and has helped train many Sudanese talents.

Sudan is willing to establish partnership with China in the agricultural sector and enhance their cooperation in the oil domain, the president said.

He encouraged China to expand investment in Sudan and also appreciated China’s support for Sudan in international affairs.

Yang said that since the establishment of China-Sudan diplomatic ties, the two nations have cooperated with each other sincerely and produced fruitful results on the basis of mutual respect, equality and benefits.

No matter how the regional and international situations change, China will continue enhancing its friendship and cooperation with Sudan, Yang said.

He also said China would like to maintain bilateral political contacts and at the same time step up cooperation with Sudan in the fields of petroleum, agriculture and mineral resources exploration.

He added that China is also ready to encourage more capable Chinese enterprises with good reputation to invest in Sudan and hopes Sudan would provide convenience.

The two also discussed the relations between Sudan and South Sudan, as well as the Darfur issue.

Yang arrived in Khartoum on Sunday for a two-day official visit to Sudan at the invitation of his Sudanese counterpart Ali Ahmed Karti.

Chinese, Sudanese FMs vow to bolster bilateral relations
English.news.cn   2011-08-09 00:40:50
SUDAN-YANG JICHI-ALI KARTI-MEETING

Chinese Foreign Minister Yang Jiechi (L Front) meets with Sudanese Foreign Minister Ali Karti (R Front) in Khartoum, Sudan, Aug. 8, 2011. (Xinhua/Mohammed Babiker

KHARTOUM, Aug. 8 (Xinhua) — Visiting Chinese Foreign Minister Yang Jiechi held talks with his Sudanese counterpart Ali Ahmed Karti on Tuesday in Khartoum to discuss bilateral relations.

“The regional situations currently continue to undergo profound changes but China will not change its policy of developing friendly and cooperative relations with Sudan,” Yang said.

“China supports Sudan’s efforts in protecting its national sovereignty, enhancing the national reconciliation and promoting economic and social development. China appreciates Sudan’s adherence to the one China policy and support on issues of China’s core interests and major concerns,” he added.

China and Sudan can jointly develop and consolidate bilateral relations by maintaining friendly exchanges at all levels, taking full advantage of political consultation mechanism between the two countries’ foreign ministries, expanding pragmatic cooperation, achieving mutual beneficial and win-win cooperation, deepening bilateral cooperation in the fields of petroleum, agriculture and mineral resources exploration, and strengthening coordination and consultation on international and regional issues, Yang said.

Ali Ahmed Karti, for his part, expressed Sudan’s appreciation of China’s stance towards the Sudan issue as well as aid and support to Sudan.

“Despite domestic changes, Sudan will continue its endeavors to develop relations with China, enhance cooperation in the fields of petroleum, agriculture, and mining, provide more convenient and safe atmosphere for Chinese investments, and retain coordination with China on international and regional issues,” Karti said. He also reiterated Sudan’s adherence to its one China policy.

Meanwhile, regarding the South Sudan issue, the Chinese foreign minister said “China always and firmly supports the peace process between north and south Sudan. China is willing to work with the international community to play an active and constructive role in promoting proper ways to solve differences between the two sides.”

As for the Darfur issue, Yang said that “China has been working hard to promote efforts in properly solving the Darfur issue. China will maintain contact and coordination with Sudan to play an active role in promoting proper settlement of the Darfur issue and realizing peace and stability in the region.”Yang arrived in Khartoum on Sunday on an official visit to Sudan at the invitation of Karti.

SUDAN-YANG JICHI-ALI KARTI-MEETING

Chinese Foreign Minister Yang Jiechi (3rd R) meets with Sudanese Foreign Minister Ali Karti (3rd L) in Khartoum, Sudan, Aug. 8, 2011. (Xinhua/Mohammed Babiker


(AFP) – 5 hours ago  

KHARTOUM — Chinese Foreign Minister Yang Jiechi pledged his country’s ongoing support for Sudan, “whatever … the internal and external changes,” at the start of a two-day visit, Sudanese media reported.

“China’s policy towards Sudan will not change, whatever the pressure and internal and external changes,” Yang was quoted as saying by the semi-official Sudan Media Centre late on Sunday, shortly after his arrival in Khartoum.

“China will continue its support for infrastructure projects in the fields of economy and development,” he added.

A key ally of Sudan, which has suffered from US economic sanction since 1997, the rising world power is also a major military supplier to the regime in Khartoum, as well as one the largest foreign investors and the biggest buyer of Sudanese oil.

President Omar al-Bashir, who is wanted by the International Criminal Court for war crimes in Darfur, travelled to Beijing just before the secession of the south last month, where most of Sudan’s oil lies, to bolster bilateral ties.

On Sunday, Yang urged north and south to find “urgent solutions” to their outstanding differences, two days after a dispute over duty payments caused the authorities in Port Sudan to block a 600,000 barrel shipment of southern oil.

“Sudan and the south will lose the peace equation by not cooperating on common and disputed issues,” he said.

Yang was due to meet his Sudanese counterpart Ali Karti on Monday morning, and President Bashir after his return from Chad, before travelling to Juba, capital of newly-independent South Sudan, on Tuesday.

Chinese foreign minister on two day trip to North and South Sudan

[08.08.2011 12:37]

Chinese foreign minister on two day trip to North and South Sudan

Chinese Yang Jiechi was in North Sudan on Monday, for a two-day trip to both Khartoum and Juba, in what was seen as an effort by Beijing to tighten its economic links to the oil producing region, dpa reported.

Sudan, which split last month into two countries, has been a major exporter of oil to China, which in turn was a staunch supporter of Khartoum, now capital of the north, internationally and through economic development projects.

Most of the oil reserves now lie in the south. Jiechi is expected to travel to South Sudan on Tuesday, for his first trip to the newly independent nation, after meetings on Monday with northern officials, including President Omar al-Bashir, who has a warrant against him from the International Criminal Court for alleged war crimes.

Unnamed Chinese diplomats were quoted by northern Sudanese media as warning that the two countries should not squander their peace deal and work towards cooperations. They also pledged that Beijing would not end its support of Khartoum.

The warning over the tense relations between north and south came following a recent a major oil row. The North blocked a 600,000-barrel oil shipment from South Sudan on Friday, alleging customs duties over the use of facilities were not paid.

The shipment was released over the weekend, after a compromise was found between Juba and Khartoum.

After decades of conflict and poor development, South Sudan’s infrastructure is in shambles or is simply lacking altogether.

Chinese foreign minister to meet Sudan’s Bashir

Mon Aug 8, 2011 12:50pm GMT

KHARTOUM Aug 8 (Reuters) – China’s foreign minister was due to meet Sudanese President Omar Hassan al-Bashir on Monday for the highest-level talks between the two allies in the Sudanese capital since south Sudan seceded to form an independent state.

Yang Jiechi met Sudanese Foreign Minister Ali Ahmed Karti in Khartoum and announced that China was giving Sudan a 100 million yuan ($15.53 million) interest-free loan, a Sudanese government statement said.

Sudan was the sixth-largest source of Chinese oil imports in 2010. China has maintained close ties with north Sudan throughout a U.S. trade embargo.

Beijing called on the world to normalise relations with Khartoum after South Sudan seceded last month and has also been keen to build a relationship with leaders in the south.

Bashir has pledged to work with Africa’s newest nation, but north and south Sudan have failed to agree on how to divide their oil revenues. ($1 = 6.440 Chinese Yuan) (Reporting by Khalid Abdelaziz; Writing by Sherine El Madany)

Chinese Foreign Minister Visits Sudans

Chinese Foreign Minister Yang Jiechi is visiting both Sudan and the newly independent South Sudan, marking the first high-level visit from Beijing since the latter’s secession last month. From the BBC:

China has been a strong supporter of  and its President Omar al-Bashir, despite allegations of Sudanese war crimes in Darfur.

The visit comes after Sudan released a cargo of South Sudanese  it had blocked in a row over custom duties.

 has to export oil via the north because it has no port or refineries of its own. However, the two sides have so far failed to agree on transit fees, or how to share oil revenue.

Chinese companies are heavily involved in Sudanese oil extraction.

The BBC’s James Copnall in Khartoum says that since three-quarters of the reserves now lie in South Sudan, Mr Yang’s visit will be closely followed for any possible signs of a shift in China’s loyalties.

The Paris-based Sudan Tribune relays Yang’s comments on the situation:

The Chinese top diplomat was quoted as saying by the government sponsored Sudanese Media Center (SMC) website that North and South Sudan “will lose the peace equation” by not cooperating on the joint and controversial issues.

He also affirmed that Beijing’s policy towards Khartoum will not change regardless of the pressures, internal and external variables adding that China will continue its support for infrastructure projects in the fields of economy and development.

On Darfur, Jiechi’s stressed that the ultimate solution to the conflict in the restive region lies in development and eliminating the causes of the conflict. He said that the recent Doha accord signed between the Sudanese government and one rebel group is an important achievement for the continuation of the peace and political process in Darfur with everybody’s will.

China FM warns North & South Sudan against losing “peace equation”
Sudan Tribune
August 7, 2011 (KHARTOUM) – The Chinese foreign minister Yang Jiechi arrived to Khartoum on Sunday on a two-day visit that will take him to South Sudan’s capital of Juba. Jiechi’s discussions will likely focus on pressing the two countries on resolving