News / Africa

Sudans Ink Oil Deal; More Needed

Inactive and abandoned oil installations are seen north of Bentiu, Unity State, South Sudan, May 11, 2012.
Inactive and abandoned oil installations are seen north of Bentiu, Unity State, South Sudan, May 11, 2012.
Gabe Joselow
Oil pipelines in SudanOil pipelines in Sudan
x
Oil pipelines in Sudan
Oil pipelines in Sudan
NAIROBI — Sudan and South Sudan’s new agreement on oil transit fees appears to resolve one of the most costly and bitter disputes between the two nations. It may be some time before oil production actually resumes.

South Sudan said it reached the agreement with Sudan during African-Union mediated talks in Addis Ababa.

The South Sudan government said the deal, reached Saturday, calls for the South to pay an average of $9.48 a barrel to transport oil through northern pipelines.  

The agreement, which still has to be finalized, will last three-and-a-half years, during which time South Sudan will also pay Sudan more than $3 billion in compensation for economic losses. South Sudan took over most of Sudan's oil wells when it became independent last year.

The government said “This is a good deal for South Sudan.”

Dana Wilkins, South Sudan and Sudan analyst for Global Witness, which monitors natural resources, said the agreement makes sense for South Sudan.

“At this point, a deal, period, is a good thing," said Wilkins. "And both sides have made compromises here and actually if you compare the current arrangement to what was previously offered by South Sudan, it's not that far off from it.”

And U.S. Secretary of State Hillary Clinton also welcomed Saturday's deal, which was announced hours after she met with South Sudanese President Salva Kiir in Juba.

In Nairobi on Saturday, Clinton made it sound as though South Sudan had needed to be convinced to reach a deal.

“This agreement reflects leadership and a new spirit of compromise on both sides. And I particularly praise the courage of the republic of South Sudan leadership in taking this decision,” Clinton said.

A senior State Department official said Clinton used her “diplomatic influence” to “strongly encourage” Mr. Kiir to accept the deal.

Wilkins at Global Witness said the two sides were never as far apart during the oil negotiations as they made themselves out to be, but that a deal was held up by other outstanding disputes left over from their separation.

The two countries have yet to reach agreement on a system to jointly monitor their border and to determine the final status of disputed areas.

Sudan has been particularly concerned about South Sudan's alleged support of rebel groups north of the border.

Sudan's state-media reported that government negotiators said oil production will not resume until security arrangements are in place.

And even if these disputes are settled, Wilkins said, it will take some time before the oil starts flowing.

"Hopefully the fact that an oil deal has been agreed, the fact that both sides need access to oil revenues, will put pressure on both to agree to the other issues, but there's still going to be delays there, but then there are also technical delays, in terms of how quickly oil production can actually resume," she said.

Wilkins also said the success of the deal will depend on the details, and noted there is no indication whether there will be an independent verification mechanism to make sure both sides are being honest in their dealings and pumping or importing as much oil as they claim.

South Sudan has also emphasized that this deal is only good for the next three-and-a-half years.

Juba hopes to complete another oil pipeline to the Kenyan coast in that time, cutting Sudan out of the equation as much as possible.

You May Like

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing 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.
US: Response to Sony Hack Will Be Proportionali
X
Aru Pande
December 19, 2014 1:45 AM
The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video US: Response to Sony Hack Will Be Proportional

The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid