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Sudan Tribune

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Sudan reportedly blocks South’s oil shipment

August 4, 2011 (KHARTOUM) – A shipment of oil produced in South Sudan has been prevented from leaving Port Sudan for dispute over fees, an official in Juba said today.

Sudan's new currency sits behind a window at the central bank in Khartoum, Sudan (AP)
Sudan’s new currency sits behind a window at the central bank in Khartoum, Sudan (AP)
Garang Deng, South Sudan’s oil minister, said that the oil tanker contained 600,000 barrels and that Port Sudan authorities refused to let it proceed to its destination unless it service fees are paid upfront.

“We have failed to reach solutions with the government of Sudan that would guarantee that the ship would depart at the specified time,” Deng said.

“I have contacted the finance and energy ministers of the Northern government but they refused to talk about it on the pretext that they have meetings” he added.

The South Sudan official warned that shipment delay could inflict penalties on Juba according to the terms of the contract with the buyers. He provided no details on who the sale was made to or the price.

The oil-rich nation became an independent state last month after its citizens voted almost unanimously in favor of secession from the Arab-Muslim dominated north. But the latter contains the infrastructure and pipelines that transports the oil from the landlocked South to Port Sudan.

Both sides are still negotiating the transit fees to be assessed per barrel for usage of the pipelines. The figures proposed by Khartoum initially were called “daylight robbery” by Juba.

South Sudan officials have threatened to seek other venues to export their oil and rejected any revenue sharing arrangement similar to the one that was in place prior to July 9th.

The first oil shipment containing 1 million barrels was made in July out of Port Sudan without any issues.

But many observers believe that there are mounting signs of an economic warfare between the two countries.

In recent weeks Khartoum and Juba traded accusations over the almost simultaneous introduction of new currency in the two countries.

The ruling National Congress Party (NCP) in Sudan said that the South breached an understanding that the North and South would maintain one currency for an interim period of at least six months.

Furthermore, the situation got more tense after Sudan said it rejected a request from the South that old Sudanese pound in circulation in the new country be exchanged with foreign currency or used in bilateral trade.

It is estimated that $700 million worth of old Sudanese pound is circulated in South Sudan. Khartoum said it has taken measures to prevent the old notes from being sneaked from their Southern neighbor.

This week, the Central Bank of South Sudan reduced the window for exchanging the old Sudanese pound from 90 days to 45. The North on the other hand said banks would open once again over the Friday-Saturday weekend to allow citizens to get new notes to “speed up” the process.

While the South would be hit if the old pound it had bought for dollars in the run-up to independence would be worthless, there is also a risk for the north: If the south tried exporting old notes back there it would add to inflationary pressures.

(ST)

27 Comments

  • Chanson
    Chanson

    Sudan reportedly blocks South’s oil shipment
    What Khartoum is doing is become a seek and find game.Let them block the shipment of oil if the will see that,we will die because of oil.We have been staying without the help from oil for past 21 years and we didn’t die.Shame on terrors community.

    Reply
  • Makuei
    Makuei

    Sudan reportedly blocks South’s oil shipment
    Khartoum is just mad because their robbing claim is not yield to.

    North Sudan will loose Kharoum and their illegal 50% oil claim, if this greedy attitude does not stop for change.

    Reply
  • Bush
    Bush

    Sudan reportedly blocks South’s oil shipment
    Jealousy and envy is killing those greedy Arabs in the North. They used to oil money from the South and not happy after losing it now.

    Reply
  • Ayuen deng
    Ayuen deng

    Sudan reportedly blocks South’s oil shipment
    I think there is no need to begging the government of khartuom if they can understand and appreciate our offer.I ask our government to used plan B .

    Reply
  • Rising of the Sun
    Rising of the Sun

    Sudan reportedly blocks South’s oil shipment
    That is it! We have always underestimated the evil plans of Khartoum and never seriously explored alternatives early enough.
    This is just one aspect of misunderstanding among many to come. It is prety certain that there are more issues NCP will bring up over time.

    The signs are crystal clear that we either put up a new export route or help to remove the current government in Khartoum to be replaced by one we can built a good relationship with so as to nurture the economic and cultural ties we have shared with some communities in the North over a long time.

    The government in South Sudan still allows itself to be distracted by NCP and fails to focus on long term sustainable plans.
    Get this oil issue off our back and find other sources of revenue.
    Cut down the large idle work force we employ in unproductive sectors so that we can manage on small finances for the time being. These office and street idlers would rather go start farming or small scale businesses than wait for monthly salaries without any valuable input service to the nation.

    Wake up South Sudan! Wake up!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Deng.
    Use your plan B,C,D,E and whatever you want; nobody will stop you!

    The problem is that you want to have your seperate country and to continue with the government business as usual. You are a foregin country and you have to pay your fees upfront like in any place on Earth. You donnot enter the stadium without paying for your ticket and you donnot leave a resturant before paying for your food.This is how life is going.You want a service, you have to pay for it!

    It is silly to vomit all your hatred for a stupid mistake done by the SPLA.

    The Jalabba government allowed the ship to leave PortSudan. Let the SPLA not to repeat it’s mistake.Next time either they should pay or make an agreement specifying when and how to pay.This a normal procedure which happens anywhere in the world!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Sunny,

    It is so simple! Pay for your service, that is it. Or either you get it free or the Arabs, jalaba, mandoukorrow are conspiring, want to steal us …bla…bla..

    No ship …I repeat no ship , even if it belongs to the government can never ever leave the port without paying it’s dues , it’s fees.Even if it belong to Basheer , NCP.This is standered, international normal procedures happening in any port in the world.

    It is just funny!!!!!!!!!!

    Reply
  • Maasai
    Maasai

    Sudan reportedly blocks South’s oil shipment
    Ali or wat ever u call urself, yeap u can’t leave resturant without paying, bt u can do it with reasonable price. do u think charge demaned by ur fucken government’s reasonable price per barrel. shame on u Arab, develped khartoum seriously within interiem period with our oil, yet u ‘re not satisfy. Hell with u Stupid Arab.

    Reply
  • ebony
    ebony

    Sudan reportedly blocks South’s oil shipment
    Sudan Tribune..please covney updated news. Garang Deng stated recently that the shipment has been released and headed to one of the Gulf countries for refining

    Reply
  • Maasai
    Maasai

    Sudan reportedly blocks South’s oil shipment
    Ali
    u ‘re still making noise meanwhile shipment’s already done, go get it back from gulf to port sudan. bloody Arab!!!!!!!!!

    Reply
  • Sudani Logik
    Sudani Logik

    Sudan reportedly blocks South’s oil shipment
    Some people are truly funny and idiotic

    Since when do such people know about international standards of doing business they better stick to their asylum seeking while pretending to be Darfurian medicine diplomas.

    There are thousands of international trade deals which are done on the basis of Service first and payment after, who do these idiots think they are talking to? Even the dumb restaurant example given, you get served your food, you eat it and then you pay! get it? you waste of space brainless fool.

    There isn’t a single example you could find worldwide where $22 is paid per barrel to transport oil through a host country, furthermore the NCP don’t want to complete negotiation of Assets so as to ascertain exactly how much of the old Sudan’s oil infrastructure is owned by South Sudan, its obvious, political maneuvering to gain ground on the negotiation table. Most of the north’s mega projects were initiated with guarantees of the South’s oil and now those investors are re-calculating and its pissing off the NCP and their two faced supporters commenting here.

    The oil commodity market is unstable, its price not fixed and therefore the trade consist of many factors and players, you people are truly funny! Who do you think you are? lol!

    You’re so full of anger because you have lost so much, you should have thought of that before imposing your culture, religion and identity on the old Sudan for over half a century!

    The likes of such idiots are beyond comprehension for me, where do you get your logic from. truly PATHETIC!

    Reply
  • Agutran
    Agutran

    Sudan reportedly blocks South’s oil shipment
    Ali, you’ve said to us, use your plan B, C, D or E, that’s it then, and now don’t try to preach or persuade us to pay.

    You pipe it all the way to port Sudan, South didn’t do it, now you send it back in the same pipeline to South Sudan and we’ll find the customer in the South to sell it to them at a half price.

    The lucky customer will use the other half as their profit and transportation fee to any destination of their choosing.

    The full price for crude oil in the stock market is a hundred dollars or more. So my friend, we have nothing to lose, time will tell us who the loser will be!

    Reply
  • Cuei Rooi
    Cuei Rooi

    Sudan reportedly blocks South’s oil shipment
    Mohammed Ali

    sudan government is so desperate and mad for the secession of south sudan.we are aware of that but one thing should be clear to you guys,that south sudan is gone and is gone for good.there is nothing you can do in the face of universe which will bring her back to the so called sudan.you people need to worry about the secession of others regions namely Darfur,Blue Nile and kordufan thanks.

    Reply
  • Ahmed Chol
    Ahmed Chol

    Sudan reportedly blocks South’s oil shipment
    SPLM LEADERSHIP is partially responsible for some of the problems that are yet to emerge from the oil crisis in the future. Wait, should the entire leadership be blame if the decisions are made by a small group or by one man?

    Garang contracted a German company to build a rail way between South Sudan and Mombasa/Lamu. Do you think that railway was meant to carry water? Some of the money that was donated in Oslo in 2005 was for this project, but when the money came some officials in the GoSS thought it was a God given opportunity to get rich. Nobody even talk about it after 30/7/2005. This leadership sometimes make some foolish mistakes that are avoidable.

    There will be a lot of frustration and argument coming out of Port Sudan in the future. Port Sudan is not good for the south to do transportation of oil and vital materials like military hardwares. Every time we will try to bring something to south, the north will search everything and impose unnecessary impediments since they know that “we don’t want war”. We are allowing ourselves to be indirectly controlled through that port for many years to come. Why do we do this? We can use the port for the short term but we need to find our own permanent solution. You can sign agreements with North, but did they implement what they sign with you? So we cannot rely on their trust.

    The rail way takes a while and a lot of work to build so those who want quick and easy things will have to persevere.

    Ahmed Chol, whatever begins in anger ends in shame

    Reply
  • Lokeji
    Lokeji

    Sudan reportedly blocks South’s oil shipment
    Dear brothers SPLM have entered the infant nation in to economical warfare which they are not likely to win it, let us be honest to the reality on the ground. they first started by currency war which they lost it to the NCP, the government in khartoum is suppose to exchange the sudanese pound circulating in the republic of south sudan with the hard currency but they instead introduce a new currency which let to the southern sudan loosing $700 million.Now another war is up again which is the dispute over the transit fee, the NCP is pushing for $23 per barrel while the SPLM is sticking on the 4 cent per barrel which let to the deadlock.Deng Garang is now making noise, with the intention of drawing the international community to support them, this is not fair you can’t make stupid decisions then later you want someone else to back you.the SPLM need to understand that they and the international community can’t force khartoum to adhere to what they want but rather they(SPLM) can negotiate with Khartoum to reach to a compromising ground. In political negotiations there are three outlets either you win the game or lost it or two of you reach to the middle ground( compromise)but let the SPLM not dream of winning the negotiation.I think many people will miss-concept my stand on this particular issue but am really exhausted with the way how our leaders in juba are managing things in the country, many of them are deciding on personal prejudices or hatred to khartoum without reading signs on the ground.Let SPLM stop thinking like a movement but rather let it think as a political party leading a new country, a country with infrastructures or anything. Now they are wrangling over positions while khartoum political strategist is thinking day and night of how to fire them ( any kind of war) and to strengthen country’s economic.
    Please stop you guys the nonsense you are doing, because ever our friends will get tire of our internal and external problems.

    God bless the Republic of south sudan and protect her from her self centered and self serving leaders.

    Reply
  • Deng Ateny Lueth
    Deng Ateny Lueth

    Sudan reportedly blocks South’s oil shipment
    Hey, Mr. Ali or whatever you call yourself. you know, north is really inhabited by the fool in the North, why resorting to childish limb accuses to block the oil. does that justify and make north score political points at all. i think South has score higher in political ground internationally, and even domestically when we voted overwhelmingly to separate. North is behaving like a old divorced wife who can no longer attract young men for marriage and so she keeps coming back to bugg at the ex-husband because there isn’t anyone, anymore to run for refuge let alone taking her as wife again. anyway used whatever weak point in the north, but one thing i know foresure, nothing is going to bring back South to its knee, and in fact, nothing at all ever under the shing sun, will bring us back to united with north sudan ever even if God sent angels from the sky to unite south with the north by force, will we resist that angelic pressures untill Jesuse return.

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Guys,

    You can vomit all of your hatred and suspesions as much as you can and take your oil wherever you want.It is all yours

    It is simple! Did your man say anything about the amount of the charges! NO , because that was not the dispute! The dispute is that THEY DID NOT PAY…DID NOT PAY ANYTHING …NOTHING. They just want the boat to leave without any payement! This is not a political issue and it is not a decision which will be taken by any politician. Do you expect the minister of finance to be just sitting and waiting to see which ship paid it,s fees or not? This is the reponsibility of the PORT AUTHORITY.

    Your government should have a shipping agent who either pay in cash or against a bank guaranttee.Your novice governement doesn,t know how to do business. They can reach this agreement with with the port authority without talking to any minister or politician.

    I wish if I can open my eyes and see that you have your pipe line through whatever country you like and enjoy watching you crying for the pea-nuts which you will get as a return from your oil.

    You be the richest country on Earth and we are happy for you, BUT am afraid you are going to die alone with your blind and senseless hatred!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Logic,

    Whatever you are; I really feel sorry for you!Because you call yourself idiot!

    You said service first , pay later…well and good, that is absolutely right.

    Did you make any arrangement for the ” later payement” Mr. not idiot and not dumb!Or you just want to dispute the price of the food you had eaten before leaving the resturant!

    The problem is that we know to whom we are talking, unfortuntely he doesn’t know that we are talking to him!

    Nobody will set the price for the seller, the market does. You can negotiate in good faith, but at the end of the day…take it or leave.

    Calling others bad names tells about your problems which you try to deny!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Deng,

    The Sudan is inhabited by the fools, that is true. May be because we have still one million southerners living with us in peace, harmony and love!

    This has noyhing to do with politics.Even before seperation any ship carrying oil has to pay it’s fees in advance or defered!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Lokeji,

    You have been logical. Trust me we are not looking for war, we had and we have enough!

    The dispute is about the port charges , which has been paid by sudapet for any oil shipped before ; it has nothing to do with the pipeline, oil sharing, oil transit .The Nivasha agreement is still valid untill an agreement is reached.

    The port is something different, it has nothing to do with any other financial or political issue.

    Trust me again, nobody is looking for war and nobody is talking hate as the vast majority do here!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Agutran,

    No we didn’t pipe , it is you who pumped it from your own country. So still if you want it pack you have to pay a return ticket! Then after that you can drink it we donnot care.

    As I mentioned before you have to have your plan B,C or whatever, trust me we will need our pipeline ” fully ” very soon!

    Reply
  • mohammed ali
    mohammed ali

    Sudan reportedly blocks South’s oil shipment
    Massai,

    I have mentioned that the ship had already left Port Sudan in my first posting at 12:12 more than an hour than your posting; Mr. non-bloody non-Arab!!

    Reply
  • Marco A. Wek
    Marco A. Wek

    Sudan reportedly blocks South’s oil shipment
    Guys, Mohammed Ali is right, we can expect the north to let the oil be delivered to us before we pay them their fees, it is our government poor calculations. Remember we are as of July 9th two sovereign countries and that we should treat north the same if they need anything from south and if our government doesn’t do so then that would be their stupidity .

    Reply
  • Waucity
    Waucity

    Sudan reportedly blocks South’s oil shipment
    Northerners are big hopeless and empty people. They will demand too much because they have been surviving on our resources for too long.

    Reply
  • Jay
    Jay

    Sudan reportedly blocks South’s oil shipment
    Mohamad Ali, the pipeline is our pipeline because you built it using our money, you make sound as if you owned the pipeline, just because it passes through your country doesn’t make it yours.

    Try to have a piece of common sense here, don’t be a pinehead.

    Reply
  • Billiu Puoch
    Billiu Puoch

    Sudan reportedly blocks South’s oil shipment
    Surely,what is wrong with Khartoum Government? If they want to declare war then let them come.How many years we spend in war with them.

    This time around,we should not compromise Arabs because they are thick in head.Bashir is antagonist,he can not win any game.

    Shame on you stupid Arabs,South Sudan will be there forever as the worldwide witness our right.Go and joint the Arabs League and kiss the dust like Osma who die in exile.

    All the documents of Osma were found in Khartoum and that will be upon you, once the World will return to you and get investigation,where you got all those documents of Osma.

    No way to forgive you nowadays.

    Reply
  • Konan
    Konan

    Sudan reportedly blocks South’s oil shipment
    hahahahahahaha small squeeze and u r screaming like little girls….loosers.

    Reply
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