Force is not an option to the oil friction
Thursday, 16 February 2012 18:29 South Sudan >>>   .The British
Embassy in Khartoum said on Wednesday that there can be no military
solution to tensions between Sudan and South Sudan. The embassy said
it welcomed a memorandum on non-aggression and cooperation signed
between Juba and Khartoum last Friday.

 But it expressed "grave concern at the recent build-up of forces and
escalation of tensions in conflict-affected border areas." The embassy
urged both governments to fully respect the provisions of the
memorandum.

In a related development the International Energy Agency said revenue
disputes between Sudan and South Sudan means overall production
estimates are down by 25 percent.

The International Energy Agency, in its monthly oil report, said the
failure of both sides to find a resolution to a dispute over the
sharing of oil revenue meant production could decline by 25 percent.

"While it is impossible to predict the outcome, the broader set of
economic and political factors at play, mean that the two countries'
oil output will remain at risk at least for the remainder of the
year," the report read.

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