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Sudan Tribune

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South Sudan may opt to continue oil sharing with north after secession: official

February 9, 2010 (WASHINGTON) –The government of South Sudan (GoSS) is mulling continuing the oil sharing arrangement with the North in a post-secession world to prevent an economic collapse, a senior official in Juba said today.

Khartoum Refinery installation (Xinhua)
Khartoum Refinery installation (Xinhua)
In 2011 the people of South Sudan will vote in a self determination referendum in order to decide whether they want to remain as part of united Sudan or create their own state. It is widely expected that secession will be the overwhelming choice of Southerners.

The separation of Sudan into a two states will deny the North billions of dollars in revenue generating from vast oilfields in the south of the country. Currently the North and the South are splitting the proceeds of crude in accordance with the Comprehensive Peace Agreement (CPA) signed in 2005.

But Luka Biong, the minister of presidential affairs in GoSS suggested that the two sides may agree to extend the wealth sharing beyond the creation of the new state.

“Our concern is the economic viability … and the unity of the north, which, I think, will make us even see whether we can continue with the same arrangement that we have,” Biong told Financial Times in an interview. “For a certain period of time, one would go for that.”

However, the GoSS official has acknowledged that many powers in the South would resist such an idea.

“Some people will say, ‘we have been sharing with these people for a long time; the moment we decide to secede, that’s it: we cannot share anything with them’,” he said.

“For the time being, it is true oil can be used for a soft landing and making economic stability and co-operating with the north,” he said. “But in the long run, this one may not be viable.”

“It is in the interest of the south not to see the northern economy collapsing,” he added.

About 75 per cent of Sudan’s proven reserves of 6.3bn barrels are in the south but the pipeline that carries the oil to export terminals and refineries runs through the north. The south needs Khartoum’s co-operation to sell its oil; the north needs revenues from its neighbor’s resources.

The GoSS president Salva Kiir said last month that the landlocked South would continue using Port Sudan to export its oil amid reports that the port of Mombasa was considered as an alternative.

Some 98 per cent of south Sudan’s non-aid income comes from oil, while the corresponding figure for the north is 60-70 per cent.

(ST)

53 Comments

  • Kim Deng
    Kim Deng

    South Sudan may opt to continue oil sharing with north after secession: official
    Folks,

    South Sudan is leaving no matter what and as a result, there will be no more oil flowing from South to arabized Nubian damn desert after 2010.

    Reply
  • Wal P Muoranyar Biet
    Wal P Muoranyar Biet

    South Sudan may opt to continue oil sharing with north after secession: official
    Then, what would be the point of Separation in the first place? It looks like will need to reliberate ourselve then? What about their oil? They even have it in Red Sea!The Northern Sudan think that the Southern Sudan will be caught up in troubles, why would we help them? BAD, BAD, BAD, BAD IDEA SPLM.

    Reply
  • Samson
    Samson

    South Sudan may opt to continue oil sharing with north after secession: official
    Sharing with North? Luka Bong must be crazy that is why south sudan never acheived any thing on his administration because all is affort and comment always distorying the will of south.

    Reply
  • Dinka Boy
    Dinka Boy

    South Sudan may opt to continue oil sharing with north after secession: official
    2011 will be the testing period whether indirectly or directly.
    No matter any difficulties awaiting South, we need independent South either by peaceful means or by sound of guns. This oil is abig problem and Southerners need to focus on this instead of short term goals power hunger.
    Southerners must short up blaming SPLM and instead wait for 2011 war.
    Thanks

    Reply
  • Gatmi raan
    Gatmi raan

    South Sudan may opt to continue oil sharing with north after secession: official
    MR. Luka Biong

    Please, rescind your statement immidiately or you and corrupt officials in the South will be hanged on spot if they try to continue wealth sharing with the North after 2011. its that DEAD serious!!!!!!!. why worrying about Northern Sudan’s economy collapsing? when the South doesn’t even have an economic foundation to begin with. if you wanted to move Northward, well start moving ok Mr (Abyei) Luka Biong!!!!

    Reply
  • AAMA
    AAMA

    South Sudan may opt to continue oil sharing with north after secession: official
    To stop cooperation with the north in terms of oil means that the GOSS will have to wait between 3 -5 years and spend billions of dollars to built a pipe through Kenya that will only work for 10 or 15 years after that.
    Beside that, who knows, maybe Kenya will charge the south large sums for allowing it to export the south oil, that’s why some southern politician talk about unity from time to time because it is the most logical thing in terms of economics for the south, at least for the next 5 to 10 years. They will also have the central government to back it up just in case anything goes wrong because their will be mutual benefits from that. The south will also need time to train its professionals in oil exploration (it took the north more than ten years to do so and they are still not fully capable of handling the oil resources without foreign help). So don’t blame the SPLM, they are working for your benefits.

    Reply
  • Deng Akol Agut-tungdoun
    Deng Akol Agut-tungdoun

    South Sudan may opt to continue oil sharing with north after secession: official
    Hey Bwona Luka Biong Deng,

    You have spoken how you feel, but that is not how we want it to be. The arabs do not know the meaning of equitable sharing of wealth and must therefore not share with us any reminance of that oil after our secession. They are making things hard for us and we must too make things hard for them in future.

    In “Kuruan al kerim” or so-called holy Quruan, it is written that eye for an eye and arm for and arm, that mean revenge is very possible.

    In our Dinka wise says, it is said that “when the wound has run deep the revenge can heal it very quickly.” All thses are signs of no compromise. They in Khartoum trust their quruan and we must trust our Africans says as well.

    Let’s thinks deep and act well to avoid future messes.

    Be blessed,

    Deng Akol Agut-tungduon, a man far away from tribalism and corruption.

    Reply
  • mayor
    mayor

    South Sudan may opt to continue oil sharing with north after secession: official
    I think the GOSS should do the same thing that NCP is doing now, they sends their sons every six month to Europe to get traing in oil field then they cameback with neednly qualification because they are convinced that South Sudan is going to separate in 2011 one choice.

    That groups they sends to Europe has no one single son from South or Darfur nor Eastren Sudan and more importanly no one even from their Suppoters in South as they believed that they need them for the time being and then they will get rid of them after 2011.

    Abeil Aleir, Lom Akol, Bouna Malual, Reick Gai, Malual Dung and others money needs under NCP umberlla are awar about that policy.

    therefore Goss should looks for the next generatons future, because every thing now is clear, North has lost the South brotherhood after we made them tapup in the war and in Mashkoth and Nafasha.

    Reply
  • Salah
    Salah

    South Sudan may opt to continue oil sharing with north after secession: official
    OMG, you are finally waking up to understand the real problem that you are going to face comes January 2011. So you secede and then what? What are you going to do with your oil? You don’t have refineries, you don’t have a pipeline, you don’t have storage facilities, you don’t have loading capabilities and oh by the way you are landlocked and don’t have a seaport. And you are just discovering this NOW? The north may lose 50% of its income but the South will lose 98% of its income. The North can suffocate the South if it wishes to do so. And don’t think exporting your oil through Kenya is a piece of cake either. You need to build a pipeline that will cost billions of dollars and takes some 3-5 years to construct and you need to build a seaport, storage and loading facilities before you can export your oil through Kenya. And you will have to do that on the terms of the Kenyan Government. You think that is easy? Try it and you will see how you fare out. See how much you will have to pay to export your oil through Kenya not only on terms of money but also in terms of other concessions. You are giving away Portsudan as part of your own country and going to start over trying to find a way to export and sell the oil that generates 98% of your income through some imaginary facilities that don’t even exist and have not been studied yet? And where have you been in the last five years? You are just now figuring this out? I really truly hope that South Sudan will flourish and become one of the greatest countries in the world. I say this from the heart. However, I am a firm believer that a lot of things need to change in the south before you acquire the necessities to become a great country. You have resources and you have very smart people but you are lead by emotions and you need to think things through before you cause a lot of damage to yourselves. Great nations are never built on emotions or because of hatred. They are built through methodical thinking and long term thoughtful planning. Think it over and may the beloved South become the envy of Africa if you choose to secede. Good luck.

    Reply
  • Wiyual Wech Puk D. Payol.
    Wiyual Wech Puk D. Payol.

    South Sudan may opt to continue oil sharing with north after secession: official
    The south sudan resources could not be shared with north sudan.never!!!.the relationship between two sides of the country after succession of south sudan as an independent nation will be selling and buying relationship, not to be sharing of southern sudan oil.the pipelines in the north will shifted any where in south and port mambessa will be used that could not be the threat for north to have part in our oil.there will be a complete separation between the two sides of the country.you, people of southern sudan remember what have happen between Eritrea and Ethiopia after their separation,that will happen in the same way after we will separate with Arabs of north sudan.i have feeling that Arab will want to take some land of southern sudan and our president Salva Kiir will not accept that i know, and the war will be going on.don’t think about oil sharing with north think about our land that arab want to take like Abiyei.don’t give room to Arab by saying oil sharing,our resources could not be shared!!!!!!!!!!!!!!

    Reply
  • Hillary B.M.L,M
    Hillary B.M.L,M

    South Sudan may opt to continue oil sharing with north after secession: official
    Better !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Better for ordinary Southerners to have spoonful from the Arabs than nothing from the ( wolves) SPLASPLM Government

    Reply
  • nyok k daw majok
    nyok k daw majok

    South Sudan may opt to continue oil sharing with north after secession: official
    first of all southern sudan oil in Bentue state was open in 1995 still today the childern in south still dying everywhere. and North government they use the oil for own benefit.when the south sudan will find their own country how can we sharing the oil ?
    and our citizen in south still suffring and government use the oil against civilian in darfour and south sudan .
    i went last month to south sudan nothing was show that there is oil working in south at all no schools no Hospitals no roads . when we still sharing the oil with north what is different between independent state and unity?
    this is last chanc to south becaus Arab in North they do not
    need southern anymore now still killing civilan in border of
    south and north like what happen Biemnom county of Ruweng in unity state from november to February arab government militia attacked the Biemnom county of Ruweng five times and Panarruu
    citizen in Panrring . that oil affect our citizen in border from panrring to Biemnom Dinka areas in border with north.

    GOD BLESS BIEMNOM CITIZEN DIE EVERYDAY.

    Reply
  • Dr.Agany
    Dr.Agany

    South Sudan may opt to continue oil sharing with north after secession: official
    That is Biong Deng’s statement!!! He hasn’t consulted anyone in south sudan to make his statement valid. Sharing oil revenue is another agreement after referendum, not just emerge from the sleep and make erratic statements. The SPLM should require popular signatories from state to state in order to arrive at conclusion. This is not a personal property!!! We would have allowed Unity state to fight for its looted resources if that was the case! All the political parties in south sudan have no right on that but people of the land do.

    SPLM should be careful!!!! Otherwise it will lose the trust of the people soon. Some days ago, it was an issue of tribal electoral college which has caused mass division within the party rank and today this statement again!!! Only that there is no strong party in south sudan to remove SPLM after indenpendent. Some individuals in SPLM do not know what is called political statement and public reactions.

    Reply
  • paul baak anyaar
    paul baak anyaar

    South Sudan may opt to continue oil sharing with north after secession: official
    No, no, after secession from the North, I don’t want to see a drop of oil being shared with Northerners again. That is the way these people usually defraud us of resources which are our own. Not all roads pass through Port sudan. We have Mombasa in Kenya through which we can export our oil after separation. separation is separation, nothing should remain in common between the North and The South for obvious reasons.

    Reply
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