---------- Forwarded message ----------
From: John Ashworth <[email protected]>
Date: Sat, 29 Oct 2011 10:45:43 +0300
Subject: [sudan-john-ashworth] South Sudan offers oil, money for Abyei
To: Group <[email protected]>

INTERVIEW - S.Sudan offers oil, money if Khartoum gives up Abyei

Fri Oct 28, 2011 3:06pm GMT By Hereward Holland
JUBA Oct 28 (Reuters) - South Sudan said on Friday it was offering its
former civil war foe Khartoum oil at discounted prices and financial
help if it gives up a claim to the disputed border region of Abyei.
South Sudan became Africa's newest nation in July after a vote agreed
under a 2005 peace agreement. But both sides still need to sort out
several conflicts such as sharing oil revenues, the lifeline for both
economies.
Landlocked South Sudan took two-thirds of the country's oil production
of around 500,000 barrels a day but needs to pay the north for using
its export facilities.
Juba has not paid anything yet since both sides have failed to agree
on a fee. The loss of oil revenues has thrown the northern economy
into turmoil with inflation spiralling.
South Sudan is now offering Khartoum the sale of oil at a discounted
price, an undisclosed amount of cash plus forgiveness of all arrears
from oil sharing claimed by the South from the time before
independence, Juba's top negotiator Pagan Amum told Reuters.
"This is a package that in return the government of Sudan will ensure
the territorial integrity of South Sudan by agreeing to transfer Abyei
to the South and also ceasing any claims on areas on the border of
Southern Sudan that they are claiming," he said.
Juba would also pay a transit fee to use northern oil facilities once
both sides reached a deal. Bilateral talks broke off in August after
the north demanded $32 dollar a barrel which Juba rejected.
"So far the South has been selling its oil without a transit fee. I'm
hoping we will reach agreement soon but it all depends on political
will, especially in Khartoum. Khartoum seems to be labouring under
bitterness," he said.
There was no immediate reaction from the northern government on
Friday, the weekend in Khartoum.
Inflation has been on the rise in north Sudan since southern
independence as imports have become much more expensive due to a loss
of oil revenues, triggering small anti-government protests.
South Sudan is very underdeveloped but has a higher per capita income
than some African neighbours because it is benefiting from high oil
prices. It has contracted oil sales worth $2.14 billion since
independence.
North and south both claim Abyei, a border region containing fertile
grazing land, which Khartoum took in May after a southern attack on an
army convoy.
Ethiopian U.N. peacekeepers have been observing a ceasefire there
since July . Abyei was meant to have a referendum like South Sudan but
it never took place as both sides argue over a population census.
Sudan and South Sudan also need to find a solution for the volatile
and poorly marked joint border.
The Sudanese army is fighting rebels in the northern state of South
Kordofan and Blue Nile. Khartoum accuses Juba of supporting the
rebels, which denies the charges. (Reporting by Hereward Holland;
Writing by Ulf Laessing)

http://af.reuters.com/article/sudanNews/idAFL5E7LS2QJ20111028?sp=true

END______________________
John Ashworth

Sudan Advisor

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