China calls for dialogue between north & south Sudan on oil dispute

January 16, 2012 (KHARTOUM) – The Chinese government on Monday called on the neighbouring states of Sudan and South Sudan to act in “calmness and restraint” as they go through a dispute over the issue of oil that so far shows little sign of resolution.

Last week South Sudan accused its northern neighbour of “stealing” its oil by forcing a foreign oil company to load 650,000 barrels of crude onto one of its vessel. Khartoum says that Juba is unwilling to pay fees for use of its pipelines and as such they will seize part of the oil as a form of payment.

Sudan claims that South Sudan owes $727 million on four shipments of oil released and transferred through the oil installations in the north since July.

All fees suggested by Sudan which fell between the ranges of $32-$36 per barrel were swiftly rejected by South Sudan.

China depends on South Sudan, a new country long suspicious of Beijing’s ties with Khartoum, for nearly five percent of its oil imports.

“We have noticed that the tension has recently escalated to a degree on the issue between the two sides, and we are concerned about it,” Chinese Foreign Ministry Spokesman Liu Weimin told reporters said at a regular news briefing according to Xinhua.

“We think that oil is the economic lifeline shared by the two countries,” Weimin said, adding that China hopes that Sudan and South Sudan will remain calm and restrained in addressing their differences through consultation and dialogue.

Delegations from Khartoum and Juba are set to meet in Addis Ababa on Monday for a new round of negotiations on oil. Sudanese officials downplayed prospects of an agreement.

“We hope that the two nations will compromise with each other to achieve a breakthrough in the negotiations,” Weimin said.

Last December, China dispatched its special envoy to Africa Liu Guijin in a mediation effort as tensions heightened on oil. It is not clear what the outcome of his mission was.

(ST)