Sudan, South Sudan reach deal on oil before adjourning final phase of negotiations
Aug. 5, 2012
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ADDIS ABABA, Aug. 4 (Xinhua) — Sudan and South Sudan have reached an oil agreement before adjourning to around Aug. 22 for the final phase of negotiations on outstanding issues, Thabo Mbeki, African Union (AU) Chief Mediator, told reporters on Saturday in Addis Ababa, Ethiopia.
Concluding their latest round of negotiations the two Sudans, the parties agreed with regard to financial arrangement that relate to the export of oil from South Sudan through Sudan to Port Sudan, said Mbeki, former president of South Africa.
“This is one of the major questions, which has been in discussion between the two parties for some time; they have concluded an agreement on this. As the consequence of which, steps will be taken to get the oil-producing companies to work so that oil-production from South Sudan can resume,” said Mbeki.
Indicating that it has reached the oil deal with Sudan, South Sudan has announced in a press release that it has secured low pipeline fees. South Sudan said that it has secured a deal to pay approximately 9.48 U.S. dollars a barrel though Sudan demanded South Sudan to pay 36 dollars a barrel for pipeline transportation fees.
“South Sudan only had to increase its last offer by 1.87 dollars,” said the release.
Mbeki emphasized on the need that the oil-production in South Sudan should be resumed for the economy of both neighboring countries.
But, that agreement has not been concluded, said the chief mediator.
“The parties have been meeting in Addis Ababa, Ethiopoia, for the last 22 days this last session we adjourned yesterday and we will reconvene soon after Eid (a Muslim holiday) which is around the 22nd, the 23rd or the 24th of this month,” said Mbeki.
He also revealed that the presidents of the two countries would have summit to sign documents which have already been initialized and also deal with the final status of Abiye.
“At the next summit between President Omar Hassan Al Bashir and President Salva Kiir, they will sign a document which was initialed in March which relates to the question of among others relates to the question of demarcation of the agreed sections of the border between Sudan South Sudan, which would make it possible to activate the systems and the mechanisms that are visualized in that agreement to make sure that the area the process of demarcating agreed sections of the border takes place as soon as possible,” he said.
He also mentioned that the two parties have agreed to have a joint delegation which will go around the world seeking financial support from different countries.
Mbeki also stated that the joint delegation would work for external debt cancellation for Sudan.
“They have agreed that the two parties would constitute a joint delegation which is also in cooperate with our panel, a joint delegation which would visit a number of countries around the world to solicit financial support for them,” he said.
South Sudan has also said it has offered about 3.028 billion dollars in direct financial assistance (TFA) to Sudan over a period of three and half years.
This is equivalent to 1/3 of Sudan’s financial gap resulting from the loss of South Sudan’s oil, it said, adding that the TFA is separate and apart from the pipeline transportation fees.
Mbeki also said that the AU Peace and Security Council passed a decision that the two parties should finalize the negotiations by Sept. 22 this year.
“We will conclude these negotiations by the 22nd of September during which time the negotiators will conclude the negotiations on all outstanding matters,” he said.
According to the release from South Sudan, the result of the negotiation will be a single comprehensive peace agreement that will ensure the mutual viability of both states.
“South Sudan’s negotiations team will return to Ethiopia soon to finalize the details of this oil deal and conclude additional agreements addressing the outstanding security issues, disputed and claimed border areas, the final status of Abiye, and further matters related to nationality,” said South Sudan.
Sudan, South Sudan reach oil deal
ADDIS ABABA, Aug. 4 (Xinhua) — Sudan and South Sudan have clinched an agreement on sharing their oil resources, officials said here Saturday.
Under the deal, negotiating teams from both sides agreed to end a dispute on oil payments to allow the resumption of southern oil exports through Sudan’s territories, according to African Union mediator Thabo Mbeki.
The negotiators met here in the Ethiopian capital, with the presence of African Union mediators, Sudan’s state-run TV confirmed.
The agreement settled the issue on how much South Sudan will pay Sudan to transport and export the oil. But both countries still have to discuss when to resume southern oil exports through the north and how to resolve current territorial disputes, it said, citing official sources.
How to share the oil wealth became a thorny issue between the two sides after the independence of South Sudan last year. While most of the oil wells are in the south, the pipelines and port to export the oil are in the north.
Sudan and South Sudan agree to end conflict over oil
Sudan and South Sudan have agreed to terminate the conflict over oil transportation, which has continued since January of this year.
The talks were held with the assistance of the African Union in the Ethiopian capital Addis Ababa. It now remains for the parties to decide when to resume supply of oil from South Sudan via the transport system of Sudan.
Other issues such as tariffs for processing and transit, have already been settled in the agreement, – former president of South Africa and intermediary at the talks Thabo Mbeki told journalists.
Landlocked South Sudan shut down oil production in January after failing to agree a deal on oil transit fees with its northern neighbour.
South Sudan declared its independence from Sudan in the summer of 2011, and since then armed clashes have continued between the two countries over disputed border territory, rich in oil deposits. The dispute has severely impacted the economies of both countries.
Aug 4, 2012