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 Analysts: Beijing Parade a 'Bazaar' of Stolen Technology

Show commemorating victory over Japan in World War II involved long, medium and short range missiles, a range of tanks and 200 fighter aircraft More

Bernie Sanders Surge Reflects US Shift on Socialism

Although most analysts say it is unlikely he will get the Democratic nomination, Sanders' campaign opens up questions and issues that are otherwise marginalized More

Video On IS Frontline, Kurdish Fighters Ready for Offensive

Peshmerga soldiers say although they need more heavy artillery, they are poised to take the fight to the Islamic State extremists on their turf 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.
Drowned Migrant Toddler Photo Triggers European Outragei
X
Henry Ridgwell
September 04, 2015 11:36 AM
The harrowing picture of a drowned three-year-old Syrian boy washed up on a Turkish beach appears to have galvanized Europe’s leaders into doing more to address the refugee crisis. France, Germany and Italy issued a joint call Thursday for compulsory quotas of refugees for all EU states. But there were chaotic scenes in Hungary as police tried to force migrants off a train heading for Austria. Henry Ridgwell has more. And a caution, some of the images in this report may be disturbing.
Video

Video Drowned Migrant Toddler Photo Triggers European Outrage

The harrowing picture of a drowned three-year-old Syrian boy washed up on a Turkish beach appears to have galvanized Europe’s leaders into doing more to address the refugee crisis. France, Germany and Italy issued a joint call Thursday for compulsory quotas of refugees for all EU states. But there were chaotic scenes in Hungary as police tried to force migrants off a train heading for Austria. Henry Ridgwell has more. And a caution, some of the images in this report may be disturbing.
Video

Video Russians Observe 11th Anniversary of Beslan School Attack

This week, Russians have been observing the 11th anniversary of the attack by Islamic militants on a school in Russia's North Caucasus region that killed more than 330 hostages, including 186 children. The three-day siege and massacre that started on September 1, 2004 took place in Beslan, a town in the republic of North Ossetia, and is one of the bloodiest terrorist acts ever in Russia. VOA's Mike Richman reports.
Video

Video Native Americans Debate: Father Serra, Saint or Sinner?

Pope Francis will canonize an 18th century missionary to Spanish California during a papal visit to the United States this month.  But some Native Americans have criticized the elevation to sainthood of the missionary priest, Junipero Serra. VOA's Mike O’Sullivan has more from Los Angeles.
Video

Video Calais School Offers Another Face of Europe’s Migrant Crisis

Europe is facing mounting criticism over how it’s handling its biggest migration crisis since World War II. But not all Europeans believe building walls or passing repressive policies are the answer. A school for migrants in the French port city of Calais, is opening doors and building bonds across nationalities. VOA's Lisa Bryant reports.
Video

Video Kurdish Fighters on IS Frontline Ready for Offensive

Finger on the trigger, the Kurdish Peshmerga soldier stared across the dust at a village taken over by Islamic State extremists. The Kurdistan’s Khazir frontline, just 45 minutes from the Islamic State stronghold of Mosul. And at this point, the militants were less than two kilometers away. VOA's Sharon Behn reports.
Video

Video China Announces Troop Cuts at WWII Parade

Chinese President Xi Jinping Thursday announced plans to cut the world’s largest military force by 300,000 troops. The announcement was made during a massive military parade to commemorate victory over Japan in World War II. The event was shunned by most Western leaders and for some is raising fresh concerns about China’s military ambitions. VOA’s Bill Ide has more from Beijing.
Video

Video Russia-Japan Relations Cool as Putin Visits China for WWII Anniversary

Russian President Vladimir Putin is in Beijing for commemorations of the 70th anniversary of China's WWII victory over Japan. Putin is expected to visit Japan later this year, but tensions between Tokyo and Moscow over islands disputed since the war, and sanctions over Ukraine, could pour cold water on the plan. VOA's Daniel Schearf reports.
Video

Video Yemen ‘on Brink of Disaster’ as Medical Shortages Soar

Aid agencies warn Yemen is on the brink of humanitarian disaster – with up to half a million children facing severe malnutrition, and hospitals running out of basic medicines. There are fears Yemen's civil war could escalate as the coalition led by Saudi Arabia tries to drive back Houthi rebels, who seized control of much of the country earlier this year. Henry Ridgwell reports.
Video

Video Apps Helping Kenyan Businesses Stay Ahead of Counterfeiters

Counterfeit goods in Kenya cost the government as much as $1 billion each year in lost tax revenues. The fake goods also hurt entrepreneurs who find it hard to carve out a niche in the market and retain customers. But as Lenny Ruvaga reports from Nairobi, information technology is being used to try to beat the problem.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.

VOA Blogs