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Sudan Tribune

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Sudan releases South’s oil shipment

August 6, 2011 (KHARTOUM) – The authorities in Port Sudan have allowed an oil shipment to leave for its destination after several days of delay over the non-payment of custom duties.

South Sudan's Minister of Energy and Mining Garang Deng (AFP)
South Sudan’s Minister of Energy and Mining Garang Deng (AFP)
The oil cargo belonged to the newly independent state of South Sudan which has no way to export its oil except through the pipelines that run through its northern neighbor.

“We have made consultations with Khartoum and at the end of the day yesterday [Friday] the shipment that was detained sailed to its destination,” South Sudan Energy and Mining Minister Garang Deng told Agence France Presse (AFP) in an interview.

He did not say how much South Sudan had to pay so that Khartoum unblocks the shipment. Juba said this week that it could incur penalties in the event that they miss the delivery date specified in the contract with the buyer.

The two countries are grappling over much South Sudan should pay for using the oil infrastructure in Sudan.

Khartoum has proposed at least $22.8 per barrel which was labeled as “daylight robbery” by Juba. The latter said afterwards that Sudan dropped this figure.

Both sides are negotiating this item under the auspices of an African Union (AU) panel headed by former South African president Thabo Mbeki. Little progress has been made so far in breaking the deadlock on pricing the transit fees.

“Currently the oil negotiations are stalled. This is because NCP [Sudan’s ruling National Congress Party] are demanding what they call financial transitional arrangements, in which they are asking a sort of contribution of wealth sharing” Deng said.

“We are ready to assist Khartoum in recovering its economic loss… [But the government] is asking us to pay 32 dollars per barrel from the oilfield up to Port Sudan. We are saying that this is too high,” he added.

Last month, Sudan’s parliament approved an alternative 2011 budget that lawmakers said included an annual income of $2.6 billion for transit fees — the same amount expected for the loss of South Sudan’s oil production.

South Sudan officials have threatened to seek other venues to export their oil and rejected any revenue sharing similar to the one that was in place prior to July 9th.

(ST)

6 Comments

  • Konan
    Konan

    Sudan releases South’s oil shipment
    “We are ready to assist Khartoum in recovering its economic loss…” This is too arrogant Mr. Minister, pay for the service rendered, no more no less, we are not begging you, otherwise find out another way to export your oil and stop pumping to our port, that’s it.

    Reply
  • Bush
    Bush

    Sudan releases South’s oil shipment
    Tell us how much money did you agree to pay the Khartoum Government? I hope we are not going to share 50/50 again.

    Reply
  • Michael Angelo
    Michael Angelo

    Sudan releases South’s oil shipment
    SPLM should have calculated how they will transported their oil after Independence. In addition, they should also underestimated northerners feeling by losing 75% of oil revenue after South Sudan Independence by July 9. How do SPLM expect someone you have divorced to be nice to you if they’re serious about the future of our new born baby?

    Reply
  • SSLA supporter
    SSLA supporter

    Sudan releases South’s oil shipment
    RSS has to sack that drunkard called Pagan Amum from the so-called ministry of peace and CPA implementation and replace him with any person wirh diplomatic approach, one who is capable of using diplomacy to iron down the wrinkled relationship between south’s SPLM and north`s NCP, without that, Pagan will make the already worse relationship between our two neighbouring countries even worst.

    Pagan and his so-called Garang sons are behaving as if they own southern Sudan simply because of their useless involvement in SPLA war that destroyed southern Sudan and without any significant outcome, without the referendum, no one, even the SPLA itself could ever dream of something called RSS today.

    Let those of Pagan stop hijacking the hard work of southern Sudanese, be it CPA that was signed as a result of their huge suffering for 21years or independence of southern Sudan which happened because of their collective hard work. Many of us lost loved ones in that war, so let Pagan and those who are trying to privatize southern Sudan go to hell with their nonsense claims.

    Those John Garang’s orphans like Pagan Amum don’t respect President Salva KiirMayaardit and his vice Riek, for the reason that Kiir is not highly educated and Riek Machar for his 1991 split. Thus, for Mr. Kiir to force respect, he needs to exercise full authority and show of force to put those drunkards and reckless Garang’s sons like pagan and likes in their positions as just as subordinates and nothing more and if they bubble too much then let them go to hell with their nonsense disrespect to the government.

    We need diplomacy to sort things out with northern Sudanese that are known for their generously, we just need to abandon the culture of brutally and aggression and adopt the culture of peace and diplomacy and not arrogance when handling sensitive issues like those.

    This cold war taking place right now between north and south is nothing more than misunderstanding due to lack of diplomacy by those of Pagan and Deng Alore, those two have to be reshuffled for the cold war to stop before they cause crisis that may escalate into full scale war in our Sudanese soil.

    Reply
  • Jay
    Jay

    Sudan releases South’s oil shipment
    South Sudan should open their eyes and brains to think clearly, look, north Sudan is charging $ 32 per barrel transit fee from South Sudan to north port Sudan.

    Again shippment fee $ 22.8 per barrel from port Sudan to the customers overseas. Overseas also South Sudan will pay the so called custom duty in the foreign port of who knows much is it going to be!

    The international price of barrel of oil is less than a hundred dollar! do the maths here, will South Sudan get enough of anything left from that to Support its people?

    The best thing for South Sudan to do is to build railroad to the Kenyan port of Mombasa and only thing we’ll be paying is custom duty, transit fee will
    be way less since railroad is ours.

    South Sudan should react very soon before it’s too late. When the trader is charging you too much, you don’t cry and say it’s a daylight robbery, you say no to them and go buy or do business somewhere else.

    Reply
  • Alier42
    Alier42

    Sudan releases South’s oil shipment
    Hi SSLA

    the three top powerfull persons in the goverment of ROSS are all drunkards, why do you single out Pagan.i am convinced that you wanted to carry out campaign on this site,make no mistake about that,you will never succeed in your campaign.we in southern sudan are supporters of Amum .when it comes to diplomatic affairs none is better than Amun,during the war struggle ,he had handled many diplomatic missions and he was very successfull .you hate him because Pagan is the only person who is now confronting Arabs in the war of wards and trading accusations between the two nations,your plan will be invian like Machar split of 1991.in which him and his tribe men were defeated by Garang,s sons whom you have mentioned them ,they are the back bone of Ross,the likes of Mai,Amum,Bior and many more,your point of arguement make no sense at all.

    Reply
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