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 Positive Messaging Helps Revamp Ethiopia's Image

In country once connected with war, poverty, famine, headlines now focus on fast-growing economy, diplomatic reputation More

Russian Activist Thinks Kremlin Ordered Nemtsov's Death

Alexei Navalny says comments of Russian liberals who think government wasn't involved are 'nonsense.' More

Video Land Disputes Rise Amid Uganda Oil Boom

Investors appear to be cashing in by selling parcels of land to multiple buyers 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.
Positive Messaging Transforms Ethiopia's Imagei
X
Marthe van der Wolf
March 03, 2015 9:03 PM
Ethiopia was once known for famine and droughts. Now, headlines more often point to its fast-growing economy and its emergence as a regional peacemaker. How has Addis Ababa changed the narrative? VOA's Marthe van der Wolf reports.
Video

Video Positive Messaging Transforms Ethiopia's Image

Ethiopia was once known for famine and droughts. Now, headlines more often point to its fast-growing economy and its emergence as a regional peacemaker. How has Addis Ababa changed the narrative? VOA's Marthe van der Wolf reports.
Video

Video Cyber War Rages Between Iran, US

A newly published report indicates Iran and the United States have increased their cyber attacks on each other, even as their top diplomats are working toward an agreement to guarantee Iran does not develop a nuclear weapon and to free Iran from international sanctions. The development is part of a growing global trend. VOA’s Al Pessin reports from London.
Video

Video Answers Elude Families of MH370 Passengers

For the families on board Malaysia Airlines flight MH370, an airline official’s statement nearly one year ago that the plane had lost contact with air traffic control at 2:40 AM is the only thing that remains confirmed. William Ide reports.
Video

Video Land Disputes Arise Amid Uganda Oil Boom

Ugandan police say there has been a sharp increase in land disputes, with 10 new cases being reported each day. The claims come amid an oil boom as investors appear to be cashing in by selling parcels of land to multiple buyers. Meanwhile, the people who have been living on the land for decades are chased away, sometimes with a heavy hand. VOA's Serginho Roosblad reports.
Video

Video In Russia, Many Doubt Opposition Leader's Killer Will Be Found

The funeral has been held in Moscow for Boris Nemtsov, the opposition leader who was assassinated late Friday just meters from the Kremlin. Nemtsov joins a growing list of outspoken critics of Russia under the leadership of President Vladimir Putin who are believed to have been murdered for their work. VOA’s Daniel Schearf reports from Moscow.
Video

Video Simulated Astronauts Get Taste of Mars, in Hawaii

For generations, people have dreamed of traveling to Mars to explore Earth's closest planetary neighbor. VOA's Mike O'Sullivan reports that while space agencies like NASA are planning manned missions to the planet, some volunteers in Hawaii are learning how humans will cope with months in isolation on a Mars base.
Video

Video Destruction of Iraq Artifacts Shocks Archaeologists

The city of Mosul was once one of the most culturally rich and religiously diverse cities in Iraq. That tradition is under attack by members of the Islamic State who have made Mosul their capital city. The Mosul Museum is the latest target of the group’s campaign of terror and destruction, and is of grave concern to archaeologists around the world. VOA’s Kane Farabaugh reports.
Video

Video Smartphones May Help in Diagnosing HIV

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.
Video

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.
Video

Video Ukrainian Volunteers Prepare to Defend Mariupol

Despite the ongoing ceasefire in Ukraine, soldiers in the city of Mariupol fear that pro-Russian separatists may be getting ready to attack. The separatists must take or encircle the city if they wish to gain land access to Crimea, which was annexed by Russia early last year. But Ukrainian forces, many of them volunteers, say they are determined to defend it. Patrick Wells reports from Mariupol.
Video

Video Moscow Restaurants Suffer in Bad Economy, Look for Opportunity

As low oil prices and Western sanctions force Russia's economy into recession, thousands of Moscow restaurants are expected to close their doors. Restaurant owners face rents tied to foreign currency, while rising food prices mean Russians are spending less when they dine out. One entrepreneur in Moscow has started a dinner kit delivery service for those who want to cook at home to save money but not skimp on quality. VOA's Daniel Schearf reports.
Video

Video Presidential Hopefuls Battle for Conservative Hearts and Minds

One after another, presumptive Republican presidential contenders auditioned for conservative support this week at the Conservative Political Action Conference held outside Washington. The rhetoric was tough as a large field of potential candidates tried to woo conservative support with red-meat attacks on President Barack Obama and Democrats in Congress. VOA Political Columnist Jim Malone takes a look.
Video

Video Southern US Cities Preserve Civil Rights Heritage to Boost Tourism

There has been a surge of interest in the American civil rights movement of the 1950s and '60s, thanks in part to the Hollywood motion picture "Selma." Five decades later, communities in the South are embracing the dark chapters of their past with hopes of luring tourism dollars. VOA's Chris Simkins reports.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.

All About America

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