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

Photogallery Oxfam: Ebola Could Be 'Disaster of Our Generation'

Meanwhile, Fidel Castro, the former leader of Cuba, says the Caribbean island nation will 'gladly cooperate' with the US in the fight against Ebola in West Africa More

Multimedia Kobani Fighting Sends 400,000 Refugees to Turkey

Refugees receive help from Turkish authorities and individuals, but say much more is needed More

India’s Ruling Nationalist Party Makes Gains in Regional Elections

Bharatiya Janata Party’s huge margin over its rivals puts it on course to form governments in the northern Haryana and western Maharashtra states 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.
Exclusive: American Joins Kurds' Anti-IS Fighti
X
Zana Omer
October 18, 2014 6:37 PM
The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.
Video

Video Syrian Defector Leaks Shocking Photos of Torture Victims

Shocking photographs purporting to show Syrian torture victims are on display at the U.S. Holocaust Memorial Museum in Washington. The museum says the graphic images are among thousands of photographs recently smuggled out of Syria by a military policeman-turned-defector. As VOA reporter Julie Taboh reports, the museum says the photos provide further evidence of atrocities committed by the government of Syrian President Bashar al-Assad against its own people.
Video

Video Drought-Stricken California Considers Upgrading Water System

A three-year drought in California is causing a water shortage that is being felt on farms and cities throughout the state. As VOA's Mike O’Sullivan reports, water experts, consumers and farmers say California needs to make changes to cope with an uncertain future.
Video

Video TechShop Puts High-tech Dreams Within Reach

Square, a business app and card reader, makes it possible to do credit card transactions through cell phones. But what made Square possible? VOA’s Adrianna Zhang and Enming Liu have the answer.
Video

Video Church for Atheists Goes Global

Atheists, by definition, do not believe in God. So they should have no need of a church. But two years ago, a pair of British stand-up comedians decided to create one. Sanderson Jones and Pippa Evans told the BBC they envisioned “something like church but without God". Their “Sunday Assembly” movement has grown from a single congregation in London to dozens of churches around the world. Reporter Mike Osborne visited with the members of a Sunday Assembly that now meets regularly in Nashville.
Video

Video Robot Locates Unexploded Underwater Mines

Many educators believe that hands-on experience is the best way to learn. Proving that the method works is a project developed by a group of students at the Stevens Institute of Technology, in Hoboken, New Jersey. They rose up to a challenge posted by the U.S. Department of Defense and successfully designed and built an underwater robot for locating submerged unexploded ordnance. VOA’s George Putic reports.
Video

Video Liberia's JFK Hospital Reopens After Temporary Ebola Exposure

JFK Hospital is Liberia’s largest and one of its oldest medical facilities. The hospital had to close temporarily following the deaths of two leading doctors from Ebola. It is now getting back on its feet, with the maternity ward being the first section to reopen. Benno Muchler has more for VOA News from Monrovia.
Video

Video Hong Kong Protests Expose Generation Gap

Most of the tens of thousands of protesters in Hong Kong are students seeking democracy. Idealistic youths say while the older generation worries about the present, they are fighting for the territory's future. VOA's Daniel Schearf reports from Hong Kong.
Video

Video Liberians Living in US Struggle From Afar as Ebola Ravages Homeland

More than 8,000 Liberians live in New York City, more than in any other city outside of Liberia itself. As VOA’s Bernard Shusman reports, with the Ebola virus ravaging their homeland, there is no peace of mind for these New Yorkers.
Video

Video Kurds See War-Ravaged Kobani As Political, Emotional Heartland

Intense fighting is continuing between Islamic State militants -- also known as ISIS or ISIL -- and Kurdish forces around the Syrian town of Kobani, on the Turkish border. The U.S. said it carried out at least nine airstrikes against Islamic State positions Friday. Meanwhile the U.N. has warned that hundreds of civilians would be massacred if the town falls to the militants. Henry Ridgwell looks at the strategic significance of the city.

All About America

AppleAndroid