Home | News    Tuesday 20 December 2011

S. Sudan demands presence of oil companies in negotiations


December 19, 2011 (JUBA) - The Government of South Sudan (GoSS) has made proposals to have representatives from oil companies included in the next round of post-session negotiations mediated by the African Union High Level Implementation Panel (AUHIP), Pagan Amum, its chief negotiator said on Monday.

Pagan Amum (R) and South Sudan’s petroleum minister, Stephen Dhieu during the meeting, December 19, 2011 (ST)

The new proposal, Amum added, will assist in overcoming the “principle of discrimination” and give all parties a platform to follow discussions on tariffs and costs being put forward.

“We feel that since discussions on the oil fees and tariffs are in the interest of the oil companies as well, the Government of South Sudan has suggested that oil companies be involved in the next round of the negotiations,” said Amum.

Talks between North and South Sudan recently hit a deadlock when the former rejecting the latter’s proposal of a US$5.4 billion offer, and instead demanded that South Sudan pays US$7.4 billion.

But Amum, who addressed representatives from various oil companies in Juba, the South Sudan capital, largely blamed the north for its hardline stand, which he said is responsible for its economic woes.

“Our offer to Sudan is based on the awareness that the needs of the people of South Sudan are more than they can ever imagine. But for the Sudan government to turn down such an offer is ridiculous,” said Amum,
who is also secretary general of South Sudan’s ruling party; the Sudan People’s Liberation Movement.

During the meeting, both GoSS and representatives from the various oil companies also resolved to make a memorandum of understanding, to be signed later this week, while the transitional agreement between the two parties will be finalised in January 2012.

Last week, Amum said, the Khartoum government reportedly sent a letter to GoSS warning that no vessel carrying South Sudan’s crude oil will be permitted to leave Port Sudan unless US$32.2 per barrel is paid as a transportation fee - ten time the international standard.

Amum said the new directive, which he described as Sudan’s “Christmas gift” to the South Sudan, is likely to create uncertainty among oil buyers and further create more tension between the two neighboring nations.

“The Khartoum government said this was a temporary measure they have come up with until the two parties resume negotiations on the oil issues,” said Amum.

He also the challenged oil companies to come up with a proposal similar to that made by South Sudan so that the Khartoum government is not prompted to shut down its pipelines.

Responding to Sudan’s recent terminal fee structure, South Sudan’s chief negotiator rejected the deal, saying they cannot pay twice the amount initially agreed upon by the Thabo Mbeki-led panel.

The new tariffs, which he said was unrealistic, included Khartoum’s demands that South Sudan pays US$6.5 per barrel as terminal fees, in addition to US$6 in transit fees.

Landlocked South Sudan has been investigating an alternative export route for its oil;a pipeline to the Kenyan coast.


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  • 20 December 2011 10:08, by Master

    It is operated by ExxonMobil (40%), and also sponsored by Petronas Malaysia (35%) and Chevron (25%). The governments of Chad and Cameroon also have a combined 3% stake in the project. THAT IS WHY CAMEROON GETS $0.41. Give US another STANDARD INTERNATIONAL FEE STUPID PAGAN. SUDAN CAN CHARGE YOU WHATEVER IT WANTS. YOU DONT WANT GO ELSEWHERE ! They agreed on that price in the year 2000 - What now ?

    • 20 December 2011 10:12, by Master

      A notable example of pipeline politics occurred at the beginning of the year 2009, wherein a dispute between Russia and Ukraine ostensibly over pricing led to a major political crisis. Russian state-owned gas company Gazprom cut off natural gas supplies to Ukraine after talks between it and the Ukrainian government fell through.

      • 20 December 2011 10:17, by Master

        Ukraine charges Russian $9.50 - thats for transit fees ONLY. Sudan is asking for transit, storage, refinining and exporting using its port. That WOULD equal $32 dumb PAGAN - DO THE MATH YOU fool !

        • 20 December 2011 10:19, by Master

          If you want Sudan to give you a discount;
          1- Ask nicely.
          2- Stop supporting rebels.
          3- Agreement on Abyie
          4- Stop calling what you owe a gift or ecomomic assistance - the world is laughing at you. You can barely feed your own people and you claim to want to give ecomomic assitance to the country that gave birth to you.

          • 20 December 2011 12:05, by Logic

            Oh boy,,,, somebody is clearly still angry at losing the South! lol.lol.

            I won’t bother counter arguing all the bullshit about company ownership hence the low costs of transit fee or Ukraine / Russia which was marred by politics.

            Just understand this, the infrastructure you’re so proud of was built with southern resources, discuss assets first then perhaps the southerners can help your NCP. lol

          • 20 December 2011 12:12, by Logic

            Pagan Amum may not be the sharpest tool in the box, but he sure knows how raffle your feather, lol.lol.lol

            Racists don’t usually like those who speak their minds, N. Sudan is in deep economic decline, stop your unnecessary pride and ask nicely for help, after-all the southerners have forgiven your kind for the atrocities committed in the name of religion and your culture.

          • 20 December 2011 12:18, by Logic

            As for the world laughing at S. Sudan, this one made me laugh out real loud.

            Coming from a supporter of a regime, who convicts a woman for calling a teddy bear "Mohamed", a dancing president who cant attend most international events and a parliament speaker who declares that he does the right thing only for God but not the people...lol

            The audacity of your arrogance is laughable! lol

      • 20 December 2011 12:17, by P.K.M

        You northerners are cunningly idiotic, who offer 5.4 billion US dollars and you rejected?

      • 20 December 2011 18:16, by pabaak

        Its was ridicules ideas to pay 5.4 billions to Government that is killing its people of marginalizes areas, this amount is enough to build pipeline through Kenya or Uganda, so we expect SPLM not to give compromise to this genocidal government in Khartoum.

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