Sudan hopes for breakthrough after Bashir agrees to release south’s oil tankers
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January 28, 2012 (ADDIS ABABA) – The Sudanese president Omer Hassan
al-Bashir heeded to a request from the Ethiopian Prime Minister Meles
Zenawi and agreed to release three tankers carrying oil cargoes
belonging to South Sudan that were held by Khartoum since earlier this
month.


Sudanese President Omar Hassan al-Bashir attends the inauguration of
the new African Union (AU) Building in Ethiopia’s capital Addis Ababa,
January 28, 2012 (Reuters)The deputy head of the negotiating team from
the Sudanese side Said Ahmed al-Khateeb told reporters at a press
conference held in Addis Ababa’s Sheraton hotel that Zenawi visited
Bashir at his suite to tell him that Juba would sign a framework
agreement drafted by the mediation team but is skeptical about
implementation.

South Sudan president Salva Kiir was particularly concerned about the
clause relating to oil tankers and as such Bashir ordered them freed
immediately after consulting with his delegation and negotiating team.

"The vessels will be free to leave immediately," al-Khateeb said.


Said Khatib, a senior member of North Sudan’s negotiating team
addresses a press conference on January 28, 2012 in Addis Ababa
(AFP)He also pointed out that Kiir raised this demand in yesterday’s
quartet meeting with Bashir, Zenawi and Kenyan president Mwai Kibaki.

On Friday, hopes of an agreement between Bashir and Kiir were dashed
after South Sudan president expressed reservations about the proposal
submitted by Thabo Mbeki who chairs the African Union High Level
Implementation Panel (AUHIP).

In its watered-down form, the accord would allow South Sudan to export
its oil without any portion of it being confiscated by Khartoum. The
latter started last year seizing some of the crude pumped by Juba
through the north’s pipelines claiming that it was payment in kind for
transit fees.

South Sudan would then provide Sudan with the 35,000 barrels per day
for its refineries in Khartoum and elsewhere.

The two sides would then work on the oil transit fee calculation and
seek an agreement within a specific timeframe.

Th next round of negotiations is to resume on February 10th.

The two countries have been negotiating for months on what a fair
charge should be for usage of the infrastructure by Juba to export its
oil.

But as talks on the fees dragged on the Sudanese government said it
ran out of patience and can no longer tolerate landlocked South Sudan
exporting its oil for free. As such it started taking part of the oil
pumped by South Sudan to make up for what it called unpaid fees.

In response, South Sudan said last week it was shutting down its oil
output drawing concern by regional and international that tensions
between both sides is escalating dramatically to the point where war
could ensue.

Officials in Juba said they will not reverse their decision to suspend
oil production unless Khartoum reimburses it for the “stolen” oil
which they put it at close to 2 million barrels or $815 million.

Khartoum insists that it is simply it is taking what is owed to it by
Juba for using its pipelines and refineries since South Sudan gained
its independence last July.

"We started taking the equivalent in kind of what we had been
invoicing South Sudan, not a cent more," Al-Khateeb said.

Al-Khateeb said that Mbeki’s team would contact the two sides in order
to set a date for signing the framework agreement which would pave the
way for a final accord within 30 days.

"By taking this step, we expect the cover agreement to be signed, the
shutdown to be halted, and the terms of the cover agreement to be
respected," said al-Khateeb.

"Before the end of today, we could be able to sign the cover
agreement. We, at least, are ready to sign."

A South Sudanese official, asked to comment, told Reuters: "We are
studying the claim. We are waiting for confirmation from the shipping
companies." He did not want to be named.

Meanwhile the Sudanese negotiating team returned to Khartoum and upon
arrival made remarks that were largely negative about their talks in
Addis Ababa with South Sudan.

They also revealed that South Sudan attached other conditions in order
to reach a deal including conceding Abyei along with five other
disputed border areas.

Khartoum would also be required to give up any claims to its shares
and rights in the branch of Sudapet Oil Company that operated in South
Sudan.

“It is clear that the delegation of the South [Sudan] does not want to
reach neither a temporary or permanent solution, having introduced two
strange conditions which shows that the southern government has
parties or pockets that do not want to reach an agreement with the
[Sudanese] government to an agreement on this matter" said Al-Zubeir
Mohamed al-Hassan who was a member of Sudan’s negotiating team and a
former finance minister.

Al-Hassan warned that South Sudan has got more to lose than Sudan by
shutting down oil production since it is dependent by 98% on crude
exports for income. He accused Juba of seeking to topple the
government in Khartoum through “strangling it economically”.

(ST)

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