News / Africa

Growing Sudan, South Sudan Oil Impasse Has High Stakes

Drilling tubing is piled next to the drilling site number 102 in the Unity oil field, South Sudan (2010 file photo).
Drilling tubing is piled next to the drilling site number 102 in the Unity oil field, South Sudan (2010 file photo).
Nico Colombant

African Union mediation to end an oil standoff between Sudan and South Sudan is expected to resume this week. Analysts say the stakes are high for the governments in Khartoum and Juba, both of which rely heavily on oil revenue to maintain themselves.

Jimmy Mulla, from the Washington-based Voices for Sudan advocacy group, is one of many analysts pessimistic about the current oil impasse. “I think as of now it is nearly impossible because the two parties are completely on different platforms," he said.

Disagreements on oil transfer fees and accusations by South Sudan that Sudan was stealing southern oil coming through its pipeline led to Juba’s recent decision to shut down oil production.

Mulla puts most of the blame on Sudan. “For the most part, I would still go back and say the government in Khartoum has not been forthcoming in terms of making sure this agreement goes forward. There are international standards, there are international agreements on oil revenues, whether it is a transit fee, all these things are in place, and these are references that have been tabled both by the government of South Sudan and also by the African Union mediating body, so it should have been easier to resolve but the lack of political will to address this issue has been a major problem," he said.

The exact terms of oil revenue sharing were not agreed to before South Sudan became independent last year, following decades of civil war.

A Washington-based international relations expert Walid Phares accuses Sudan of doing whatever it can to muddle the post-breakup phase. “Keep in mind that the northern regime did not really let go of South Sudan.  They want to try to control it.  They want to try to instigate trouble within the Southern Sudanese regions," he said.

Both countries accuse each other of backing cross-border rebellions, as the exact border and some regions remain in dispute. Sudan’s President Omar al-Bashir recently said his country was closer to war with South Sudan than peace.

After the breakup, Sudan started by asking $32 in transit fees for each barrel of South Sudanese oil shipped through its pipeline and then upped the request to $36. Those two figures are more than ten times standard rates.

Analysts say the government in Khartoum has been very nervous with the loss of oil revenue as it has also been struggling with a lack of foreign currency, high inflation, civil society discontent and $38 billion in external debt.

Eric Reeves, a Sudan researcher at Smith College, believes Sudan’s government also wants to use the oil impasse as leverage to ease its debt. “Now, there have been discussions in the UK, in Germany and France that suggests it might be the case that these countries anyway are contemplating debt relief. I think that is a terrible signal to be sending Khartoum.  It only encourages them to be more intransigent, more ruthless in expropriating revenues from southern oil," he said.

Other analysts interviewed for this report said Asian countries which have been the main consumers of South Sudanese oil, especially the biggest buyer China, should try harder to help find a solution.

They warn South Sudan, which depends nearly entirely on oil revenues for state income, could easily become a failed state with escalating sectarian violence and angry unpaid soldiers if the oil shutdown persists.  

South Sudanese officials have talked about building an alternative pipeline to the Kenyan port of Lamu, but most analysts say this seems unrealistic at this point, because of cost and security issues.

The only hope they say would be for a major deal which addresses other current concerns such as ending the cross-border violence and finding long-term solutions for the remaining regions in dispute.

You May Like

Lion Cecil's Killing Sparks 'Canned Hunting' Debate in S. Africa

Conservationists believe incident, which triggered worldwide outrage, will reshape debate about practice in which hunters are allowed to target animals bred for hunting More

US Urges Taliban to Stay With Afghan Peace Talks

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Environmentalists Issue Warning on Mekong Biodiversity

Scientists say decades of economic development, hydropower-dam construction, lax law enforcement and trafficking have taken their toll More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs