North and South Sudan reviewing latest proposal by AUHIP on oil dispute
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January 26, 2012 (KHARTOUM) – The African High Level Implementation
Panel (AUHIP) mediation team tabled new proposals for the negotiating
teams from Khartoum and Juba in a new bid to break the long standing
deadlock over the issue of oil transit fees.
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Saber Mohamed al-Hassan Khartoum’s chief negotiator on economic issues (AFP)
The landlocked South Sudan is using the north’s infrastructure
including pipelines and refineries to export its oil but it is in
disagreement with its northern neighbour over how much it should be
charged for using this service.
Khartoum is insisting on no less than $32 per barrel of oil which Juba
vehemently rejects calling it excessive compared to international
norms.
On Tuesday AUHIP suggested a temporary arrangement that lasts for a
month and a permanent one by which South Sudan pays a specific amount
of money that covers the period from 9 July 2011 until December 2014.
The head of the economic committee within Sudan’s delegation Saber
Mohamed al-Hassan spoke favourably of the new AUHIP initiative saying
it is better than the previous ones but refused to release its exact
details.
Al-Hassan flew to Khartoum for consultations with officials there and
is expected to return to Addis Ababa on Friday to rejoin the
negotiations.
The Sudanese foreign ministry spokesperson Al-Obeid Marwih told
reporters that he expects the responses to the new proposals to be
submitted today on its temporary and permanent portions.
The president of Sudan Omer Hassan al-Bashir is expected to hold a
summit in Addis Ababa on Friday with his southern counterpart Salva
Kiir along with Ethiopian prime minister Meles Zenawi and Kenyan
president Mwai Kibaki.
Marwih said that it is likely that the summit will result in an
agreement being signed before the end of this negotiation round on
Saturday.
Tensions between Khartoum and Juba escalated further after Juba
decided last week to suspend oil production in retaliation for what it
said was stealing by Sudan of its crude oil passing through pipelines
on its territories to export terminals in the Red Sea.
Khartoum defended its decision to confiscate South Sudan’s oil, saying
Juba has failed to pay transit fees since the south seceded from Sudan
in July of last year. Sudanese officials say the arrears amount to
almost $1 billion.
In a related issue the Sudanese oil ministry denied assertions made by
some analysts that the halting of oil production by South Sudan will
damage the pipelines due to its heavy nature.
The Director of the general administration of oil supply and marketing
of Azhari Baspar told the government-sponsored Sudanese Media Centre
website that Sudan does not rely for its oil derivatives from oil
produced in South Sudan. He noted that the refineries in and Khartoum
and al-Obaid depend on the Nile Blend light crude.
(ST)
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