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Sudan Tribune

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Press report: Sudanese president confirms agreement on sharing of oil wealth

KHARTOUM, Sudan, Dec 21, 2003 (AP) — Sudanese President Omar el-Bashir said his government has agreed with southern rebels to a 50-50 split of the African nation’s oil revenues, according to a news report published Sunday.

The independent Al-Sahafa daily quoted el-Bashir as saying his government would provide such a high percentage of national oil revenues to forego the provision of any other federal assistance to southern Sudanese areas.

“The two delegations have reached an agreement on the division of (the southern) oil revenues,” the paper quoted el-Bashir as saying during an interview conducted late Saturday.

“Fifty percent for the federal government and 50 percent to the government of the southern states, including 2 percent to go to the state where the oil is discovered.”

El-Bashir’s comments were published as delegations representing his government and the rebel Sudan People’s Liberation Army were holding talks in neighboring Kenya aimed at end their 20 year civil war.

The chief mediator to the talks, Kenyan Lazaro Sumbeiywo, told The Associated Press that both sides had agreed in principle on how to share the oil revenue and were working to reach a full agreement on wealth sharing.

Amin Hassan Omar, a member of the Sudanese government delegation, told Sudan’s official news agency that a deal could be reached on wealth sharing by the time the latest session of talks ends, but said no agreement had been reached so far.

The negotiations had been expected to adjourn Friday for Christmas, but continued after the parties failed to agree on outstanding issues. These include the SPLA’s representation in a transitional government, National Assembly and civil service, and the administration of three disputed areas in central Sudan.

In October, U.S. Secretary of State Colin Powell met Sudanese Vice President Ali Osman Mohammed Taha and SPLA leader John Garang in Kenya, and called on the sides to reach a comprehensive agreement by the end of the year.

Shortly after the latest peace process began in July 2002, the parties agreed to a six-year transition period after which southerners will vote in a referendum on whether the south should secede.

“This (oil sharing) agreement will be the base and the reference for oil distribution with other oil producing states,” el-Bashir was quoted as saying.

El-Bashir said the oil sharing deal would pave the way for agreement to be reached on other contentious issues, including the division of all of Sudan’s wealth.

Sudan began producing oil in 1999 from fields mainly located along an imaginary line that divides southern and northern Sudan, and is producing some 250,000 barrels a day. More than 80 percent of oil fields operating now are in southern Sudan. Oil revenues constitute 43 percent of national revenues.

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