Sudan admits to confiscating a portion of South Sudan’s oil

January 3, 2012 (KHARTOUM) – The Sudanese foreign ministry today confirmed that a portion of oil pumped by South Sudan passing through the north’s pipelines is seized by Khartoum, but stressed that this is done with Juba’s knowledge.

Kiir did not offer any details but described this as ‘looting in a broad day light’.

The foreign ministry spokesperson, al-Obaid Ahmed Marwih, said that Sudan is not stealing the oil but taking it as a form of payment for the south’s use of its the pipelines. He emphasised that this procedure was announced last November and communicated to Juba, the mediators and oil companies.

“What we take out of [the South’s] oil is with the knowledge of everyone and certainly once an agreement is reached between the two countries on the prices for [using the north’s oil] infrastructure it will be deducted from the oil proceeds” Marwih said.

The Sudanese official pointed out that what was taken so far would be included in the negotiations between the two countries on oil transit fees.

The African Union High-Level Implementation Panel (AUHIP) chaired by former South African president Thabo Mbeki has hosted several rounds of talks between Khartoum and Juba to resolve the dispute over how much should be charged for the use of the oil pipelines owned by Sudan, which transports the crude to export terminals in the coastal city of Port Sudan.

Sudan wants a quick agreement as it undergoes an economic crisis caused by the loss of 75% of its oil reserves after the south became an independent state last July.

Late last year Khartoum warned that it would close down the oil pipelines until $727 million in arrears are paid. But the decision was quickly reversed following criticism from China, who imports 5% of its oil from South Sudan.

(ST)