Unity state stops all 300 oil wells

By Bonifacio Taban Kuich

January 27, 2012 (BENTIU) – Authorities in oil rich Unity State said Friday that they had successfully closed down over 300 stations of oil wells in both Tharjath and Unity oil fields. Last week South Sudan announced it was stopping the export of its oil through north Sudan over a fee dispute.

Khartoum claims that Juba has not paid for the use of its infrastructure since the south seceded in July taking with it around 75% of Sudan’s oil. Landlocked South Sudan and north Sudan have not been able to agree on a fee for using the north’s pipeline and refineries.

Unity State, home to South Sudan’s biggest oil fields told Sudan Tribune that all their oil fields had been successfully shutdown.

Juba says the Sudanese government have confiscated $815 million of South Sudanese crude oil without their knowledge, while Khartoum says the South owes $1 billion in unpaid fees.

A number of demonstrations were held around South Sudan in support of the government’s decision.

Both countries stand to suffer from the decision. The north’s economy has suffered form the loss of oil revenue while South Sudan relies on the oil revenue to fund 98% of the state’s budget.

State Minister of Information, Gideon Thaor said: “There is none of the oil field is working now, we have exactly followed the decree of the council of Minister in Juba and all our over 300 stations are down, we have already shutdown there is nothing we are waiting for”.

Thaor added that they have taken precautions not to damage the wells or cause waste.

South Sudan’s government have signed a memorandum of understanding with Kenya to build a new pipeline to Lamu Port in Kenya to avoid exporting through Sudan.

The two countries are currently considering the latest proposal from the African Union how to resolve the dispute.

(ST)