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

Report: $60 Billion Leaves Africa Illegally Each Year

Report by joint UN and African Union panel says African countries need to take concrete measures to stop illegal money flow from continent each year More

Video Spy Murder Probe Likely to Further Strain British-Russian Relations

Some analysts say Russian Tu-95 bombers were flying near British airspace to warn Britain about an inquest into a murdered Russian spy More

Mugabe Defends Image Amid Controversy at Close of AU Summit

He rejects concerns about how the West might perceive his leadership, saying he's focused on African development 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.
Spy Murder Probe Likely to Further Strain British-Russian Relationsi
X
Henry Ridgwell
January 31, 2015 10:50 PM
Relations between Russia and the West are set to become even more strained amid an inquiry in London into the murder of a former Russian spy. Lawyers at the inquiry accuse Russian President Vladimir Putin of directing a "mafia state." Meanwhile, Royal Air Force fighters intercepted Russian bombers close to British airspace this week, prompting authorities to summon Moscow’s ambassador. Henry Ridgwell reports.
Video

Video Spy Murder Probe Likely to Further Strain British-Russian Relations

Relations between Russia and the West are set to become even more strained amid an inquiry in London into the murder of a former Russian spy. Lawyers at the inquiry accuse Russian President Vladimir Putin of directing a "mafia state." Meanwhile, Royal Air Force fighters intercepted Russian bombers close to British airspace this week, prompting authorities to summon Moscow’s ambassador. Henry Ridgwell reports.
Video

Video Ukrainian Neighborhood Divided Over Conflict

People in eastern Ukraine’s Donetsk and Luhansk districts find themselves squarely in the path of advancing Russian-backed rebels, who want to take back the territory they held at the beginning of the conflict last year. Many local residents are afraid, but others would welcome the change, even when a rebel shell lands in their neighborhood. From the Luhansk district, 15 kilometers from where the Ukrainian government marks the front line, VOA’s Al Pessin reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid