Juba accuses Khartoum of constructing illegal pipeline to steal South Sudan’s oil
By Bonifacio Taban Kuich
April 5, 2012 (BENTIU) – South Sudan’s oil minister, Stephen Dhieu, claims that Khartoum has been constructing an illegal pipeline to extract oil from South Sudan’s Unity State, amid bombing raids which mark a further deterioration of relations between the East African neighbours.
A dispute over the payment of oil transit fees escalated in January with South Sudan halting oil production. Landlocked South Sudan relies on a pipeline to Port Sudan, in north Sudan to export its oil. Juba has refused to pay Khartoum’s exorbitant fees for usage of the pipeline. In lieu of payment, Juba claims, Khartoum [confiscated oil with a market value of US$815 million and retaliated by halting oil production. With oil revenues accounting for 98 percent of South Sudan’s economy, the move will have significant economic ramifications.
South Sudan is exploring alternative pipelines to Kenya and Djibouti. However, with depleted oil reserves, Juba’s bargaining power with regards to oil infrastructure investment has been diminished.
When South Sudan seceded in July 2011, it took with it 75 percent of what were Sudan’s oilfields. As Khartoum’s economy is poorly diversified, the economic slack is proving difficult to take up. Both Juba and Khartoum have recently announced austerity measures and are active on the international investment circuit.
One of the contentious issues yet to be resolved by faltering negotiations between Khartoum and Juba, held in Ethiopia, is over oil transit fees.
Both sides accuse one another of backing rebel movements which oppose their government’s rule in the regions bordering the neighbours. Juba accuses Khartoum of backing the Unity state South Sudan Liberation Army/Movement (SSLA/M) and Khartoum accuses Juba- of backing the South Kordofan and Blue Nile based Sudan Revolutionary Front (SRF) rebel coalition.
After inspecting the new pipeline on Monday, Dhieu said it was “intended to be connected illegally to the oil wells in Unity State and then illegally they will actually take the crude even if we are not operating, this is the intention, it is very near to the oil field in Toma South and Naar field”.
Dhieu was accompanied by the Unity State governor, Taban Deng, who said on Monday that four SAF jets dropped bombs on the Tachuin SPLA base at 3.00pm on the same day, after which one was shot down. Sudan Tribune saw the wreckage of the jet to the north of Tachuin.
Settlement in the dispute which also covers border demarcation remains illusive. On Thursday, South Sudan chief negotiator, Pagan Amum, claimed the Khartoum delegation “sneaked out of the hotel” where African Union High Level Implementation Panel mediated talks were being held in Addis Ababa, Ethiopia.
(ST)