Oil Disputes Shadow First Day of Sudan-South Sudan Talks

Posted by Amanda Hsiao on Jan 17, 2012

ADDIS ABABA, Ethiopia -- A new round of post-independence talks
between Sudan and South Sudan began today in Addis Ababa and are
slated to last until next Monday, January 24. Front and center in this
round of talks is the issue of Khartoum and Juba’s undetermined oil
relationship, and the size of the transit fee—measured in dollars per
barrel of oil—that South Sudan should pay to Khartoum for the use of
pipelines that cross Sudan’s territory.

Representatives of the South Sudan and Sudan delegations, members of
the facilitating African Union High-Level Implementation Panel, and
notably, emissaries of foreign oil companies involved in the
Sudan-South Sudan oil industry were seen milling around the Sheraton
in the Ethiopian capital in between meetings.

Tensions related to Khartoum’s detainment and confiscation of South
Sudan oil hung over the first day of talks. Documents issued by the
South Sudan delegation at a press conference today suggest that
foreign oil companies, under “duress” by Sudan security forces,
cooperated with the illegal lifting of 605,784 barrels of oil onto a
Sudan-chartered vessel. The documents also indicated that on the day
before talks resumed, Khartoum issued further instructions to foreign
oil companies to load another 750,000 barrels of oil onto another
Sudan-chartered vessel.

In the last round of negotiations, an SPLM proposal to give
economically-troubled Khartoum financial assistance, in exchange for
Khartoum’s recognition that disputed territories along the border
belong to the South, was set aside to focus on the issue of oil. As of
the last round, the positions of each party on what transit fee would
be appropriate remained far apart. For a settlement to ultimately be
reached, the two parties will have to bring other unresolved issues
back into the conversation, namely the disputed territory of Abyei, as
well as a number of other border areas claimed by both sides.

In an attempt to shed light on what has occurred in the negotiations
to date, as well as to inform future discussions concerning the
process, and the AUHIP’s contribution to it, Enough released today a
timeline for the negotiation process. The timeline provides an
overview of the negotiations to date and reflects the various changes
to the process’ structure.

In the coming week, Enough will be covering this round of talks and
providing regular updates from Addis Ababa. Stay tuned.

Photo: Soldiers guard an oil facility (AP)

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