Sudan: Oil disputes threaten peace prospects: Global Witness

January 21, 2011 (JUBA) — As tension over oil resources continue between
North and South Sudan, a new report says failure by both nations to
clinch a deal at ongoing post-session negotiations could threaten
prospect for peace and stability.

Global Witness, a UK-based organization urged the two countries to
agree to a new and transparent arrangement soon or risk seeing the
situation deteriorate into renewed conflict.

The South Sudanese government claimed on 10 January that Khartoum had
diverted southern oil to Sudanese refineries and storage facilities,
and prevented the loading or departure of five tankers meant to carry
3.4 million barrels of crude oil out of Port Sudan.

Sudan says it has not stolen the oil, but rather is taking its
rightful share in kind until a transit deal is agreed.

On Friday, however, South Sudan announced it was officially shutting
down it pipelines nationwide as a remedy to Khartoum’s alleged theft
of its crude oil, and that it will only resume normal operation only
after a reasonable transit fee is agreed upon by the two neighboring
nations.

“Any disruption in the transit and export of oil could have damaging
financial consequences for Sudan, South Sudan, their investors, and
export partners. It is crucial that this dispute is resolved
immediately,” said Dana Wilkins, Global Witness campaigner.

“A new deal that guarantees transparent and accountable management
must be agreed to prevent further tension,” she added.

In the January 16 statement, Global Witness also said the agreement of
a new deal governing how South Sudan’s oil is exported and how funds
are managed is “critical” to both countries’ economies, citing South
Sudan’s direct transfer of funds to assist in Sudan’s financial
transition, debt forgiveness, a per-barrel transit fee as important
steps for resolving the wrangle.

However, while newly independent nation proposed to offer Sudan $2.6
billion over a four year period to resolve its financial woes and an
additional $2.8 billion as debt forgiveness, the Khartoum reportedly
declined both offers approved by the African Union Implementation
Panel on Sudan (AUHIP).

Both countries, according to Global Witness needed to be far more
transparent about the production, processing, and sale of oil if any
agreement is to be sustainable. Such levels of transparency, it adds,
should involve independent verification of details of all shipments,
revenues, and fees paid as well as received.

“In the absence of independent verification on the movement and
export of the crude, it is impossible for anyone to be sure of exactly
what is happening, who will be affected, and how,” said Wilkins.

“What is certain is that this latest dispute again proves that
transparency and accountability across the oil sector are essential to
building a sustained peace between the two countries.”

South Sudan officially attained independence on 9 July 2011, after its
population overwhelmingly voted for separation during a
self-determination referendum held in January the same year.

(ST).