South Sudan clinches fair oil deal with Sudan

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JUBA (Aug 4, 2012) – South Sudan has sealed a fair oil deal with Sudan could see South Sudan resume oil production and exports through Sudan’s Port Sudan terminal, Chief Negotiator Cde Pagan Amum announced Thursday.

Cde Amum told a news conference in Juba shortly after arriving from Ethiopia that his team had secured the best deal for South Sudan despite enormous pressure from the AU, UN, US and UK, among others.

“The government of South Sudan has succeeded to protect the resources of South Sudan,” Cde Amum, also the Secretary General of the ruling SPLM, pointed out.


(File) Cde. Amum

Under new deal, South Sudan shall pay $6.50 for the transportation of a barrel of its Dar Blend crude oil via PETRODAR’s facilities, pay an additional $1.00 in transit fees and a further $1.60 for processing each barrel of crude oil.

Sudan had demanded that South Sudan pay up to $25.00 for transportation, $6.00 in transit fees and $5.00 for processing.

The agreement means South Sudan will only pay $9.00 in transportation, transit and processing costs per barrel compared to the $36.00 that Sudan tried to impose.

In the case of GNPOC’s facilities, South Sudan shall pay $8.40 for transporting a barrel of oil, $1.60 for processing and a transit fee of $1.00, bringing the total figure to $11.00.

The agreement reflects South Sudan’s original position that it shall not pay Sudan a transit fee of more than $1.00 per barrel.

“I am really happy that the negotiating team of South Sudan was able to achieve this,” a clearly pleased Cde Amum said. “This is a real breakthrough,” he added.

“In the interest of peace, South Sudan has offered $3.028 billion in direct Transitional Financial Assistance (TFA) to Sudan over a period of three and a half years,” according to a government of South Sudan statement.

Cde Amum explained that while he expected the President to direct the Minister of Petroleum to prepare for the resumption of production, implementation depended on the two sides reaching a deal on all outstanding issues.

These include border demarcation, the Abyei referendum, protection of citizens of each country residing in the others’ country and security.

Such a comprehensive agreement will represent “a basis for opening a new page in relations with Sudan.” Cde Amum stressed.

South Sudan halted oil production earlier this year to protest persistent theft by Sudan of its resources and in protest of rip off tariffs that Khartoum imposed.

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Click here to read the press release

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