South Sudan protests imposition of $22.8 per barrel by the North
July 27, 2011 (JUBA) — The Republic of South Sudan on Wednesday protested against demands by North Sudan to impose a transit fee of $22.80 per barrel of oil describing it as nothing but a “clear declaration of economic war”.
“What the government in Khartoum has done is unacceptable. This is not just an economic discrimination, it is a clear sign indicating declaration of economic war against the south”, Salvatore Garang Mabiordit, undersecretary in South Sudan’s ministry of finance and economic planning told Sudan Tribune.
“As of today we still have a copy of an order from the government of Sudan to government of South Sudan and oil companies demanding charges of $22.08 as transit fee for the use of a pipeline for exporting the oil produced from the South”.
Under a 2005 peace deal oil from South Sudan was shared 50-50. Negotiations on post-independence issues have failed to find agreed on how much South Sudan will pay to export oil through North Sudan’s infrastructure.
South Sudan produces around 500,000 barrels a day.
Pagan Amum, the Secretary General of the Sudan People’s Liberation Movement which is the ruling party in the South told reporters on Monday 25 that talks between the two countries are scheduled to resume next week in the Ethiopian capital of Addis Ababa.
Amum told journalists at a press conference that the two parties had struggled to reach an understanding on how to share oil revenues because the North is demanding too much.
“We could not reach any understanding each time we resume discussion since we began post-referendum negotiation in January, because the National Congress Party is ever raising unacceptable and illogical demands”.
“They are demanding special charges, transport charges and other fees which are not justifiably”, said Amum adding that Khartoum had sent a written document instructing oil companies to impose $22.08 on every barrel of oil produced from the South passing through the North.
“Khartoum has all of a sudden sent written instruction to oil companies and the Republic of South Sudan that they are imposing $22.8 in every barrel we export,” said the senior government official
The undersecretary in the ministry of finance and economic planning in the government of South Sudan said on Wednesday that behaviour shown by Khartoum would force the South to create a second transport corridor — linking the port at Lamu on the north coast of Kenya and the newly-independent state of South Sudan.
“We are still waiting [to see] what Khartoum would say in the upcoming negotiation scheduled to resume next week in Ethiopia. Our team will leave Juba for talks with the team from Khartoum next week. I think it is the outcome from these talks that the government of South Sudan would decide what to do in the next three years,” says Mabiordit.
(ST)
Bush
South Sudan protests imposition of $22.8 per barrel by the North
What a charge! the Government of Sudan is too greedy and jealousy, they don’t want to see us to developing faster and by pass them in few years.
Khartoum92
South Sudan protests imposition of $22.8 per barrel by the North
Why are these negotiations always are hosted in Ethiopia what does ethiopia know about peace, Next time they should be either in Khartoum or Juba..
Mi diit
South Sudan protests imposition of $22.8 per barrel by the North
our south sudan government was sleeping as if this day of independence was not going to come. for six years they could not build alternative pipelines to kenya or djibouti. now this is the result.
dr. lual deng achuek and garang diing who were in charge of oil sectors in khartoum and juba are to blame for this situation now.
Khartoum92
South Sudan protests imposition of $22.8 per barrel by the North
This oil wont last that long..
Jay
South Sudan protests imposition of $22.8 per barrel by the North
Northerners are just playing mind tricks with Southerners, they know very well that the chances of Southerners allowing that to happen are very slim.
They know most Southerners are inexperience but not that crazy inexperience.
Bush
South Sudan protests imposition of $22.8 per barrel by the North
@Khartoum92
The Arab world and people like you have been hating Israel for years and years, yet Israel still prove to be one of the most strongest country on earth. Hence, your chronic hatred towards us will yield nothing.
Keep hating.
harry
South Sudan protests imposition of $22.8 per barrel by the North
Let’s put the equation mathematically, South Sudan maximum production is 500,000 barrels per day, that’s 500,000 X 360 = 180,000,000 barrels per a year. Khartoum charges $22.80 per barrel, that’s 180,000,000 X $22.80 = S4,104,000,000.00
That’s $ 4 billion one hundred four million per year. In simplest terms, that’s what South Sudan government will pay for transporting the oil through Northern Sudan per a year.
Harry,
Deng Thiak Adut
South Sudan protests imposition of $22.8 per barrel by the North
It was last year when the North Sudan was claiming that a barrel was costing between $8-11, and we were seemingly splinting the proceeds in those ambiguous accounting format where honest Southern Sudanese officials (with exceptions of those who indulge in crimes of fraud, bribery kickback and so forth) were never allowed to know the exact figures apart from $8-11 per a barrel.
First twist: Khartoum has now advised and is armed-to-teeth that $22.08 per a barrel is just and equitable figure. Someone should have asked a question or need to ask a question:
Are we going to sale a barrel at lost, original cost between $8-11 or were North Sudan government was dishonest and fraudulent regarding the previous figures? Can someone explain this to me in clear and concise English?
Second twist: This year, there were various economic blockage almost disabling the economics of the South, imposed by the North Sudan, that including not been able to obtaining oil supplies or food supplies from the North and did affect the local people in terms of health, social economic, business, Government of the South herself was squarely affected. Why still trading with the North Sudan?
Our leadership should learned from the mistake of the past, for example Abel Alier and Joseph Lagu eras and were not going to be subject to any economic or criminal hindrance from the North. Third question: Those of Pagan for example and other “Monsters” who are direct beneficiaries of this treacherous trade will not care about turning of the pipeline and investing elsewhere.
Good citizens of South Sudan, you have fought all these years, with no fear of death, we must exercise our civil liberties, freedom of speech to assure our recent representatives government in Juba, that any action by Northern, that debilitate our economics is not right and their action must not go without political solution.
You Excellency, the President and Your Excellency, the Vice President; there are options on the table and I wish not to advise you of these options. Southern Population is awaiting your response.
Wanibuluk Ciciliba
South Sudan protests imposition of $22.8 per barrel by the North
But what is happening now durring this time of negotiation? Is Khartoum not exploring the oil?
David Arok
South Sudan protests imposition of $22.8 per barrel by the North
This is unfair, I think what Northern Sudan have to consider is that there are other alternatives. I am sure what they are demanding is a threat to South Sudan for a short time, let say about three-years if South Sudan decided not to used Northern Sudan pipeline again. However, it will have a permanent impact on Northern Sudan if South Sudan is going to consider other majors. I suppose there is no other neighbouring country to Khartoum then South Sudan. And if Northern Sudan is acting like that, then I think it will damage the relationship between two countries. And in future if there are environmental factors such as the one happening in Somalia now where will they go? South Sudan have many neighbouring countries that can help but we are the only country which can help Khartoum.
Khartoum should think for long term relationship which is far more important than what they are demanding now. I am sure if Northern Sudan can charge 50-cents a barrel it will still earn them approximately $92,000,000 yearly which I think is still a significant amount of money because it will be there as long there is drilling happening in South Sudan.
If Khartoum government is wise enough they should accept the little South Sudan is offering to them, because what they are demanding could bellow they whole situation and they are going to loss every dollar that should have been theirs, plus the relationship between two countries.
Khartoum need to reconsider the future repercussions. Better to have little then losing everything.
Just Junubi
South Sudan protests imposition of $22.8 per barrel by the North
Khartoum 82
“This oil wont last that Long”
I could feel the hatred and Jealousy in you just by the words that are coming out of your mouth/mind. What does this article have to do with Oil not lasting that long?
Those Devils in imam Suits that are running the government in Khartoum think we are stupid by imposing this ridicules fees,which works out to be 50% of our oil revenues.
Our Government should give up on the hope that the North will one day come to its senses and behave like a responsible government unless the NCP and the mentally alike are out of the equation.
I think we should do the following:
*Stop the Oil flow
*Get Loans for 2012 & 2013 budgets with oil and land as
collateral
*build pipelines and refineries (But where do we get the finance? coincidentally, many investors/companies have already made offers to build them)
*With oil out of the equation for now,the focus is then shifted to Agriculture and other industries
With the Spot light currently on South Sudan, We Should use the international community for the best of our advantage.
P.S Believe me when I say that the North will one day wake up and regret everything they are doing now.
For lord knows we tried
Ayuen deng
South Sudan protests imposition of $22.8 per barrel by the North
That is too much, better we build our own pipeline to our niegbouring countries or build our refineries here in south sudan.
Sam.Eto
South Sudan protests imposition of $22.8 per barrel by the North
Someone should educate these morons !
Sudan produces 500,000 barrels per day – 375,000 from the South. Making the total charged for this is $2.6 Billion per year.
North Sudan Produces 125,000 per day – will be 200,000 by end of the year and 500,000 in 3 years. Build your pipleline HA HA HA till then you owe the North 2.6 Billion every year. When you pay your electricity bill – dont you cry when you get the bill. Same here tuff South Sudan – this is what your paying – here is your reciept !!! Ha Ha Ha
Sam.Eto
South Sudan protests imposition of $22.8 per barrel by the North
THERE ARE NO OTHER ALTERNATIVES !!!!
NO OTHER ALTERNATIVES
Someone should educate these morons !
Sudan produces 500,000 barrels per day – 375,000 from the South. Making the total charged for this is $2.6 Billion per year.
North Sudan Produces 125,000 per day – will be 200,000 by end of the year and 500,000 in 3 years. Build your pipleline HA HA HA till then you owe the North 2.6 Billion every year. When you pay your electricity bill – dont you cry when you get the bill. Same here tuff South Sudan – this is what your paying – here is your reciept !!! Ha Ha Ha
Sam.Eto
South Sudan protests imposition of $22.8 per barrel by the North
Your government said it needs $500 Billion in the next 5 years. I.e $100 billion per year. Tell me one insane country, company or organisation that is going to give some corrupt new government with no experience other than to fight in the jungle that amount. Loans are given more than the fact you smile, say you are christians and you promise you will pay it back. Ha Ha Ha …..Even if they build you a refinery or pipeline – it will take 3-5 yrs to complete. In the mean time? starve? beg? kill each other ! You will pay wether you like it or not !!!
Pagan or your minister did not say they wont pay because they know they have to. NO ONE can stop Sudan from charging you these fees !! i suggest you bend over nicely and cooperate !! Ha Ha Ha
mohammed ali
South Sudan protests imposition of $22.8 per barrel by the North
Sam,
You are wrong,bro! It is going to be 265,000 very soon. After one year am afraid we will need all of our pipeline and the planes for another one are going one, this one is not enough! The Americans know this, this is why they are running after us.Morons only donnot understand international policy! We have enough carrots, we donnot need any more.
Moreover this is our price take it or leave it.Is that clear Sam?!
Sam.Eto
South Sudan protests imposition of $22.8 per barrel by the North
Taban Deng Gai, governor of the oil-rich Unity State, said officials in Sudan were imposing unacceptable terms.
“Can you imagine they are charging $33 per barrel for processing and transiting oil from the oil fields in Unity State (in South Sudan) to Port Sudan (in Sudan)?”
The price of oil per barrel varies but oil called Dar Blend is sold for about $80 per barrel, while Nile Blend is sold for $114 per barrel.
“You know, the oil leaves South Sudan when it has 10% of water in it. When it reaches Heglig (an oil field located on the Sudan border) they have to remove the water from it. They are charging $2.90 for that process,” said Gai.
“In addition, Sudan charges South Sudan $22 per barrel to transport the oil from the fields in Unity State to Port Sudan.
“In Port Sudan they charge $6.90 per barrel for handling and impose additional taxes,” he explained. With an additional $1.2 in export tax, the total comes to $33 per barrel.
He added: “If you calculate these fees at the rate of $33 per barrel, you find that we are still giving the north (Sudan) exactly 50% of the oil revenue.”
“South Sudan has no alternative other than exporting the oil through the north (Sudan). What (Kiir) says doesn’t make any sense because he doesn’t have any other options than to use our pipelines,” said Mahmoud.
“Airplanes flying over our skies pay us a fee, so if South Sudan is using our pipelines on the ground, should they not also pay?
“This moment, as I am speaking to you, there is oil (from South Sudan) in the northern (Sudan’s) pipelines going to Port Sudan,” Mahmoud said.
He added the pipeline was Sudan’s asset and South Sudan had to pay to use it.
Deng Gau
South Sudan protests imposition of $22.8 per barrel by the North
Mi-diit,
Do you know that the government of South Sudan in the CPA has no Right to operate in the oil Production during interum period?
CPA says that the oil production shall be under the government of Ntional Unity, Otherwhise Goss was declared violting the CPA.So Bro, Mi-diit neither Lual Deng Nor Garang Diing Akuong were not mistaken but it was some to do with a signed document of wealth sharing protocol in the CPA.
Govrnment should either negotiate the North wisely to coninue exporting while establishing a new pipeline through Ethiopia, Dijiboti or Kenya. Or short down the North Pipeline and start establishing a new alternative.
Bashir’s government is clearly declaring the war against us, But i strongly support the statement of the president H.E Salva Kiir last week, that he will shut down the pipeline if the North inssist on demand of 22.8 US dollar per barell as a transit fee. Yes we fought 21 years with out oil being exported so we can stay without it three years.
One day Dictator Bashir will cry facing a difficult economic situation, So mr. Bashir it better for him to accept $3 per barrel as a transit fee which has been recogized internationally as a fair transit fees.
South is boosing the economy of the North by buying their products but bashir doesn’t know that, he just a military man only he has no knowledge of economoic situation forecasting.
Great South Sudan oyeeeeeeeeeeeeeeeeeeeeeeee.
Just Junubi
South Sudan protests imposition of $22.8 per barrel by the North
I don’t know what’s so difficult in comprehending what Riek Machar meant by raising $500b in the next five years. Off course no one will give a government that amount but if you pull your head out of your A** then you’ll understand that what he meant was Direct foreign and domestic investments worth $500b which the government won’t even see. What you people don’t understand is that, this part of the Sudan that just broke off is one of the most blessed countries (in terms of resources) in the world if not the most. Pretty much everything you can think of is here or can be made here,So your hate and ill wishes won’t stop this country prospering.
Just focus on developing your part of the country with-out having to rely on, rob and steal others resources (even them pipelines you claim to be your assets were built with oil extracted from Southern Wells).Hypocrisy to the max (Sharia Law, alla Akber,prey five times a day,cutting hands etc,,,And Yet Still Stealing). My thoughts are with those poor citizens in the North, Brain washed and buying into the propaganda. Lord have mercy
3-5 years to complete, wow, please present us a copy of your feasibility Study.
mohammed ali
South Sudan protests imposition of $22.8 per barrel by the North
Junub,
You better keep your thought for yourself, you need them! All of the ” mighty’ is crying for taking a loan for itself of $ 500 billions, Greece is crying for loans and Spain , Italy and Portugal are on their way to be bailed out.Yet you dream to get $ 500 BILLIONS! To whom?! Against which guarranee and securities. I think you need to wash your brain well to understand the world of finance.
Meanwhile, this is our price …take it or leave.Period!
mohammed ali
South Sudan protests imposition of $22.8 per barrel by the North
…the ” mighty” US…) refering to what is happening now in congress!
Just Junubi
South Sudan protests imposition of $22.8 per barrel by the North
OMG, Another Brother with his mind stuck up his A**.
Who said anything about a $500b loan? Now tell me who’s in need of a mind wash.
Thanks for enlighten me on what’s happening in Europe and US (congress), I happen to live in a cave.
SSLA supporter
South Sudan protests imposition of $22.8 per barrel by the North
hahahaha
What do you expect when making all those useless and unnecessary threats toward northern Sudan that is vital for the survival for your underdeveloped nation!!
Now, you have got what you have been looking for, that is what you get when you cause unnecessary antagonism towards someone you depend on for your survival!!
Al Bashir was begging you for brotherly relationship between one people of Sudan even if the country is divided but you turned him down and continue to behave as if you don’t want to know Northern Sudan anymore and now you quickly started to establish diplomatic ties with the enemy of Sudan!!
Now,let Marial and Pagan Amum know how much stupid they are in jeopardizing what is supposed to be brotherly relationship between South and north Sudan, that would have saved us lives,money and time!!
Honestly, if I was in Al Bashir shoe I would have charged you more than that and if you are not happy with that, then I can just shutdown that oil pipeline and ask you to find an alternative route export your oil through
even if it means to carry it with your small heads to hell, be it Kenya or wherever you take it to is not my business and see who will suffer most, given the fact that 89% of the economic of southern Sudan depends on oil revenue compared to only 25% of the oil revenue which contributes to economic of northern sidan!! so, whose economic will suffer most if the oil export through north Sudan is suspended or stopped?
They say, ignorant is an enemy of her/himself!! you are good at causing controversies and then surprise when you face their implications!! dumb government!!
If people like Marial are qualified medical doctors , so why are they not practicing medicine that they spent ages studying, given that we have an acute shortage of medical doctors in southern if not because they didn’t understand anything about medicine, now, majority of those ministers
with Dr. titles before their names claim to be qualified medical Doctors but simply don’t want to work in hospitals because there is no enough money there,then their motive is obviously not to serve the country but to loot it otherwise, to prove me wrong let them quit their minimal posts and return to medicine, of course after training because there is no medicine left anymore in their brains!! they will never do that, believe me!!
Northern Sudan must make sure to topple the SPLM regime before it is used by Israeli and western world to destroy northern Sudan!! the move made recently by the government of RoSS to normalize diplomatic ties with Isreali is very dangerous to the North Sudan and its meant to intimidate or terrorize north to given in to SPLM requirement!! Arm and SSLA and use economic sanctions against that fragile government in southern Sudan and the SPLM regime will collapse just like an air bubble and things will change to positive again after the departure of SPLM criminal network!!
Covert
South Sudan protests imposition of $22.8 per barrel by the North
Khartoum92, oil was lasting long when you were the owners of it, and now you are not going to be the possessors of it, it is not going to last long, and we completely understand it. So do you need to let us know that?
Nhom wadit
South Sudan protests imposition of $22.8 per barrel by the North
dear, unless we tell them to close and construct our own pipelines after 3 years and be patience for only mentioned period because we stayed for over 2 decades without oil share.
okucu pa lotinokwan
South Sudan protests imposition of $22.8 per barrel by the North
Why to wash time with Khartoum in this petrolum discussion
let ROSS to decide to stop every things otherwise our oil still will go in a wrong direction
OKUCU PA LOTINOKWAN
mohammed ali
South Sudan protests imposition of $22.8 per barrel by the North
Janub,
FDI ” foreign direct investment is also a loan my dear! The country have to give it back directly or indirectly.Again tell me who is investing in the whole world during these times anywhere in the world. Or which company on Earth will bring that money from it’s pocket to invest.Ultimately they have to take a loan from a bank! Because you donnot live in a cave, you know that the banks are empty for 20 millions not 500 billions!
Waucity
South Sudan protests imposition of $22.8 per barrel by the North
This is stupid, just build the pipe line..Just do it, let people back home work hard and produce more money from the agriculture….I always say that the government should gather people and in a community organize event and let them contribute…Just stop, Khartoum, you will notice this when you are dead..They will never give you a chance to do business. And stop thinking about building pipeline in Ethiopia, Think of Kenya, this is the Country which is happy to have the pipeline from day one…I hate how slow you our leaders… Japanese said, they will build, so take the deal, I believe you are very selfish people.
SSLA supporter
South Sudan protests imposition of $22.8 per barrel by the North
Dear, idiot, the two decades you spent without oil, you also spent them as in insurgency! now you are a government dumb, how are you going to run the country without services.!! fools, you better think. with your brains !!