News / Africa

    No S. Sudan Oil Exports Until at Least March

    An oil processing facility is seen at an oilfield in Unity State, South Sudan, April 22, 2012.
    An oil processing facility is seen at an oilfield in Unity State, South Sudan, April 22, 2012.
    Reuters
    South Sudan will delay resuming oil exports until at least mid-March even if the new African republic solves all security conflicts with Sudan at a presidential summit on Friday, Oil Minister Stephen Dhieu Dau said.
     
    The comments, the first forecast since November, are a blow  for both oil-reliant economies which have been in dispute since last January when South Sudan shut down its crude output of 350,000 barrels a day after failing to agree on export fees with Sudan.
     
    Landlocked South Sudan had planned to resume exports through Sudan this month after the two sides signed several deals to end hostilities in September.
     
    But Juba has delayed restarting its oil wells because the two states have failed to agree on how to secure their disputed border, a condition both say is necessary to resume oil exports.
     
    Sudan's President Omar Hassan al-Bashir and South Sudan's Salva Kiir are scheduled to hold a summit in Ethiopia on Friday aimed at ending the deadlock.
     
    South Sudan's oil minister said both countries had made preparations to restart piping oil to Sudan's export terminal at Port Sudan but it would take two months to hit markets.
     
    "If the two presidents meet ...and the two ministries of petroleum in the two countries are given orders to resume the oil production, I can say that by mid-March the crude will be at Port Sudan," Dau said in a interview late on Wednesday.
     
    "You have 90 days for the whole procedure from marketing to lifting and then collection of the proceeds," he said, adding that the government would not get any oil revenues until April.
     
    Dau did not say when exports would resume but based on the previous plan of restarting production on Nov. 15 and the first exports hitting markets by January, South Sudan would only come close to its former output of 350,000 bpd in the second half of the year.
     
    It had originally planned to have full output restored at its largest oilfields in Upper Nile state by March and at the smaller field in Unity state by May.
     
    From a technical point of view the export facilities, processing plants and pipelines were ready, Dau said: "We are ready 100 percent now, the two sides."
     
    Diplomats see no quick breakthrough at the presidential summit as both sides share a deep mistrust and have repeatedly failed to implement what they have signed.
     
    Even if the presidents agreed to set up a demilitarized border zone, as agreed in September, withdrawing their armies would take time.
     
    In another setback for international efforts to defuse tensions, South Sudan on Thursday accused the Sudanese army of having bombed its side on the border.
     
    The African neighbors came close to war last April in the worst violence since South Sudan seceded from Sudan in July 2011.
     
    That followed a 2005 peace deal which ended decades of civil war yet conflicts between the two countries persist. Apart from restarting oil exports they must also determine ownership of several disputed border areas.
     
    Arbitration
     
    Dau said Sudan and South Sudan had failed to end a dispute over how much Juba should pay for seizing northern-owned oil facilities in the south.
     
    Both pledged in September agreements to find a solution within two months. But Dau said Sudan, which demands $1.8 billion for the former assets of its state firm Sudapet, had now opted to seek arbitration.
     
    "We accepted, so the case now is before the International Centre for Investment Dispute Settlement in London," Dau said.
     
    There was no immediate reaction from Sudan's oil ministry.
     
    Dau added that South Sudan would hold new talks next week with Toyota Kenya over a feasibility study to build an alternative oil pipeline through Kenya. All current pipelines go through Sudan.
     
    "We are confident that in the first half of 2013, we should actually have a clear position about the construction of the pipeline," Dau said.
     
    Analysts are sceptical about government plans for such a pipeline because it would have to cross rough and violence-stricken territory and would only be viable pending significant new oil discoveries.
     

    You May Like

    Video For Many US Veterans, the Vietnam War Continues

    More than 40 years after it ended, war in Vietnam and America’s role in it continue to provoke bitter debate, especially among those who fought in it

    Video Newest US Citizens, Writing the Next Great Chapter

    100 immigrants graduated Friday as US citizens in New York, joining the ranks of 680,000 others every year in cities across country

    Family's Fight Pays Off With Arlington Cemetery Burial Rights for WASPs

    Policy that allowed the Women Airforce Service Pilots veterans to receive burial rites at Arlington had been revoked in 2015

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

    By the Numbers

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora