South Sudan rules out sharing oil revenue with North
February 15, 2011 (JUBA) – The new state of South Sudan that is expected to officially become the world’s newest state in July, has no intention of continuing to split the proceeds from oil revenue, an official in the South’s ruling party said on Tuesday.
“The notion of sharing wealth will not be there. There is no continuation, whether 50 percent or anything,” Amum said according to Reuters.
Most of Sudan’s proven daily output of 500,000 oil barrel is extracted from oilfields in the South whereas the pipelines infrastructure and refineries are based in the North. Both sides need to maintain cooperation on oil after secession to sustain their economies which depend greatly on oil revenues.
“There’s going to be an agreement on the South continuing exporting its oil through the pipeline in Northern Sudan and to Port Sudan, and the South will be paying pipeline fees for transportation,” said Amum.
“We may be paying a transit fee because now Northern Sudan is going to be a different independent state from the south,” he added.
Amum’s statements run contrary to those made last year by Southern officials in which they suggested that sharing oil revenue will continue even after the South secedes.
“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,” SPLM leading figure Luka Biong told the Financial Times in an interview.
“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.
Even U.S. Secretary of state Hillary Clinton hinted that the North and South should continue the oil-sharing formula put in place by the 2005 Comprehensive Peace Agreement (CPA).
“What happens to the oil revenues?” Clinton said. “And if you’re in the North and all of a sudden you think a line’s going to be drawn and you’re going to lose 80 percent of the oil revenues, you’re not a very enthusiastic participant. What are the deals that can possibly be made that will limit the potential of violence?”
North Sudan is currently in economic crisis that manifests itself in soaring inflation and hard currency shortage, which forced the government to implement unpopular austerity measures such as cutting subsidies on sugar and petroleum products.
While officials in the North said that they have alternatives such as new oil discoveries and gold mining to compensate for lost revenue, analysts are skeptical whether this would constitute an immediate remedy.
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Gatwech
South Sudan rules out sharing oil revenue with North
Of course the CPA sharing of 50/50 will not be there.
But the South will have to continue sharing some reasonable percentage of oil revenue with the North in hiring the oil pipeline, refinaries and Port Sudan for exporting the crude oil.
Those economic interests involving the oil sector should be used as part of forging good relations with the North.
Aleu
South Sudan rules out sharing oil revenue with North
The New Sudan nation must focusing on the agriculture sector, because this oil is just a none renewal and Officials should not put hope with it. Starting agriculture right now in Southern Sudan.
Tobiin
South Sudan rules out sharing oil revenue with North
The problem is that most countries bordering south Sudan do not have stable government. our oil pipeline wouldn’t go back to the north. but we will find out what suite our deal.
I also blame those corrupt idiots who are about to destroy the government of south Sudan with their greed.
Dinka domanited SPLA
South Sudan rules out sharing oil revenue with North
Ahahahahah riek gai kok And mawel madout promised Bashir that south is going to share oil with them now what will happen? they will loose their expensive buildings.
If you have no will to change it, you have no right to criticize it”shame on them.
Anyang
South Sudan rules out sharing oil revenue with North
Right Mr Amum, only agrees to pay for transportation cost, otherwise anything than that is not worthy.
gais juvan
South Sudan rules out sharing oil revenue with North
Pagan,
You have said it, and may be it may happen to be true
But your statements run contrary to those made last year by Southern officials in which they suggested that sharing oil revenue will continue even after the South secedes.
Don’t you think will thwart the southerner at last,
Payning the pipe may cost less, but need diplomatic talks with the north. let me hope they will not charge higher then sharing the revenue.
Surley with time to come we don’t need North Arabs to claim oil of the south.
North need to distant from oil in the south.
Juvan
Trier
Mabor Yiel
South Sudan rules out sharing oil revenue with North
Mr. Secretary,
This is what i know for the first day i cast my vote that there will be no sharing of oil revenues between these Two Nations.
The only problem now left is who will be the good leader to distributes these National wealth equitably among the citizens.
Watch out
Padiet Deng Alony
South Sudan rules out sharing oil revenue with North
NO more oil sharing 100% now belong to Southern Sudan Gov’t
we need to build our own oil refineries one in Maluth county/Palioch Northern Upper Nile State to be and Bentiu unity State so that we run our machines with that fuel.
Sam.Eto
South Sudan rules out sharing oil revenue with North
Pagan Amum is a drunken idiot ! No one in the North asked for oil to be shared. But the South will pay a big fine for the transport and refining of the oil. The North has made it clear – oil in the South belongs to the South – That in the North belongs to the North (including Abyie – Bamboo and Heglig). If any of you illiterates knew – 30% of Sudan’s oil is produced in the North – i.e 110,000 from the 500,00 – 190,000 by the end of this year. The North is not going to collapse. The stupid Amum suggested giving grants to the North – HA HA HA what a joke. You have to have money first to give it you idiot. The GOSS is broke and worse off at the present time – No alternative source of money, no investment, no production. The GOSS is sending its minister Alor to the states to beg for money. No one is going to invest in the South while these savages butcher each other. There was a reason why the massacre occurred in Jungulai state – Because Total was going to start exploring. But that does sound like its going to happen any time soon.
I suggest Amum stop this arrogance and start cooperating in a like mind fashion. Otherwise this Zionist fool will find himself hated by many more people..
Sam.Eto
South Sudan rules out sharing oil revenue with North
p.s did you guys see how the world is laughing at your new Anthem – calling south Sudan “Cush” – Everyone knows Cush is in North Sudan and they are wondering why you would sing about the land of your enemies – the people that treated you like second class citizens. The Bible mentions Cush – but it wasnt referring to South Sudan.
It is an insult to the current descendants of the Kushites – Nubians, Nuba people, Mahas and Halfawieen. Your people still run around naked without even the simplest idea of civilization. Where introduced to clothes by the Northerners. How on earth could you relate yourselves to the great civilization of “Cush”.
Sam.Eto
South Sudan rules out sharing oil revenue with North
A couple of things to point out is that the agreed upon border puts much of the discovered producing oil in the north (Heglig, Bamboo etc) whereas as the south gets Unity, Toma and Toma South fields as well as the discovery that Lundin oil made near Abyei (can’t remember the name of the field). Unity has been producing the longest and hence has the least reserves remaining….Toma and Toma South have very high wax content are relatively expensive in terms of treatment (pore point depressant and flash heating). The southern reaches of the Muglad basin are relatively unexplored and for good reason. This area is swamp and under water for much of the year. Lundin used Lousiana swamp buggies in order to acquire seismic and they were in a relatively dry portion of the south. It will be a huge challenge to develop this area.
More importantly I need to correct the idea that the south is “mainly Christian” and the north “muslim”. In reality the south is a mix and mostly animist, not Christian. The north is comprised mainly of muslims but there are Coptic churches in Khartoum and the copts are left to their own devices. The south was fraught with tribal warfare for generations prior to the troubles with the Khartoum government. I can’t see any reason to suspect that situation will change which likely means development of oil infrastructure in the south will be a long drawn out process.
One of the issues that everyone misunderstands is why the Khartoum gov’t didn’t put up much of a fight over turning over oil fields to the south. The south still has to pay for access to the central processing plant and the pipeline infrastructure. From the Khartoum gov’t perspective the facilities were capitalized quite awhile ago so basically they may lose some oil revenue but they will make up for some of that in pipeline tariff revenue. A pipeline south to Lamu is a bit of a fantasy to my mind. You would need a heck of a lot more oil to justify it. The Uganda pipeline that Tullow will be involved with doesn’t go north but rather goes south and then directly east so there would be no synergy with a Sudan line.
Jalaby
South Sudan rules out sharing oil revenue with North
HAHAHAHAHAHAHAHAHAHA .. HAHA
Pagan, how idiot you are? why do you lie to your people??!! will you only hire the pipeline from the north? that’s not true, you will hire the pipeline + refineries + exporting fees for using Port Sudan + shipping back cost for your use in the south!
No problem our fees will be 40% if you don’t like our deal then use cups and bottles to export it through Kenya .. HAHAH!
Be aware that we will soon give you an appologize letter that we can no longer carry out your oil as soon as our new oil is ready for exporting, it is just a matter of time Pagan .. don’t cry baby!
Jalaby (Abo Tagia)
william
South Sudan rules out sharing oil revenue with North
Absolutely, I agreed with one commentator who said the existing Oil-pipeline in Sudan is not belong to
the North Sudan Government therefore, we need not to pay them any percentage unless to be determined by national assets distribution. Beside that the current Government of southern sudan can creates another pipeline in Mambasa Kenya and close up that in north/enemy terroritory.
mack waweru
South Sudan rules out sharing oil revenue with North
It’s so ridicules to talk of sharing oil revenue proceeds with the North after independent. The North has already stolen thousands and thousands billions of oil barrels from Southern oil fields and is in storage in El Jailiey, north of Khartoum and near Port Bashir.
The theft started since 2000 till 2007. The current oil wells in operation in the south we talk about as “our oil, our oil” will dry up in 2015.
Hiring the pipeline and refineries would be good instead of continuing to split it 50/50. South was also cheated on its 50 share.
Mack
Jur Tier
South Sudan rules out sharing oil revenue with North
From the economical point of view, The idea of South Sudan renting a pipeline that belongs to the North is a big mistake should the Southern politicians be in a position to proceed with that plan.
The two nations namely south and North would still need to go through a number of process in order to to trust each other.
Take ,for example, the recent fivety-fivety percent oil sharing signed During the CPA. How sure are Southerners that the oil revenues were shared equally as agreed in the CPA?
Southern politicians need to understand that there is a massive cheating in the revenues sharing and that should end as soon as South announce its official independence this July.
The following questions should have been asked by them:
How many barrels of oil were extracted per day?
Who counts the barrels?
Who export the oil?
Who receive the Money before being shared equally?
Is the money receive in dollars or the local currencies?
These questions should have been raised before going ahead with such plans.
Sam.Eto
South Sudan rules out sharing oil revenue with North
Big oil trouble brewing in South Sudan
February 18, 2011
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* Analysis by: Michael Lynch
Summary
The state of South Sudan that will become the world’s newest nation in July will not share its oil wealth with North Sudan. The secretary general of the Sudan People Liberation Movement, Pagan Amum, told reporters that “the notion of sharing wealth will not be there.” The South will only pay a fee for the use of the pipeline to Port Sudan. North Sudan is currently in economic crisis with soaring inflation and shortages of hard currency. Officials in the North say they can find new oil fields.
Analysis
The above is an extract from an article from Ridder/Tribune Business news as reported by the Rigzone Newsletter of February 18. This is a classic case of confrontation between the haves and the have nots. The powder keg in all this is that the Northerners (the have nots) control the only pipeline to deep water. The South (the haves), controlling most of the oil production are asking for trouble. The question is whether or not the Asian owners of the concessions can bring wisdom to this debacle. It is a certainty that they want to keep the oil flowing (all 500,000 bbl/day of it). Greater NIle Petroleum Operating Company, a consortium led by China National whose partners are Petronas, Sudapet, Nigeria Express Petroleum and the Sudanese firm High Tech Group, control a good portion of the oil production and they will use every diplomatic trick in their portfolios to keep the situation from becoming explosive. China National also operates a 100,000 bbl/day refinery in Khartoum which is important for both North and South. Still most of the crude oil that arrives at Port Sudan comes from the South and goes to China, India and Malaysia. China and India consider Sudanese oil to be strategic for their future development. They won’t take kindly to a disruption. The history of Sudan since the long civil war began in 1985 is far from encouraging. Will the two states find common ground? Will the region lapse back into civil war? If 500,000 bbl/day of crude is removed from the international system in July, today’s $100/bbl Brent Blend will look cheap.