Khartoum rejects South Sudan’s “last” offer on oil, Abyei

July 23, 2012 (KHARTOUM) – Sudanese negotiators on Monday dismissed as
“nothing new” what their South Sudanese counterparts have termed as
the “last offer” to resolve the two countries’ disputes over oil
transit fees and the status of Abyei, in the latest setback to talks
bound by a UN deadline due to end in nine days.
 FILE PHOTO - South Sudan’s chief negotiator, Pagan Amum (L) sits
alongside Sudan’s Defence Minister Abdel-Rahim Mohamed Hussein (C),
Sudanese spokesman Omer Dahab (R) during the latest round of talks in
Addis Ababa on July 7, 2012 (GETTY)
The new offer was unveiled by South Sudan’s chief negotiator Pagan
Amum, who said in a press conference held in the Ethiopian capital
Addis Ababa on Monday that Juba told Khartoum it can pay 9.10 US
dollars for every barrel of oil that passes through pipelines owned by
the China-led Greater Nile Petroleum Operating Company (GNPOC), and
7.26 US dollars for every barrel of oil that passes through PetroDar
pipelines.

Amum, who described the offer as their “last”, said it also includes
an annual compensation package of 3.2 billion US dollars to help Sudan
cover a budget deficit resulting from the loss of three quarters of
its oil production to South Sudan when the latter seceded in July last
year.

The South Sudanese official said Juba would also forgive 4.9 billion
US dollars in what it says are overdue oil payments before its
independence and for oil Sudan confiscated after independence. Sudan
says it took the oil in lieu of unpaid transit fees.

The offer also includes a new proposal to hold a referendum organized
by the AU and the UN on the status of Abyei, Amum said.

But Sudan, which previously rejected the south’s offer of paying 2.6
billion in financial compensation and insisted on getting 32 US
dollars for every barrel of oil, swiftly rejected the new proposal
saying carrying “nothing new”, as put by the member of its negotiating
delegation Mutrif Sidiq.

Sidiq, who was also addressing a press conference in Addis Ababa, said
that the south’s offer was nothing but the combination of previous
offers in one document.

He added that the fact that South Sudan shifted from direct to
AU-mediated talks means that the process is now back to the starting
point.

South Sudan suspended direct talks with Sudan on Saturday citing an
airstrike carried out the day before by the Sudanese army inside
southern territories. Khartoum denied the charge saying it only bombed
forces of the Darfur rebel Justice and Equality Movement (JEM) after
they crossed into Sudanese territories coming from South Sudan.

Sidiq said that the direct negotiations were addressing all issues in
one package as dictated by the “strategic approach” the two sides
adopted in earlier rounds. He also commented on Abyei proposal saying
it is an attempt on the part of Juba to refer the dispute to the
international community.

The renewed impasse comes nine days before the expiry of a deadline
set by the UN Security Council (UNSC)’s resolution number 2046, which
threatened non-military sanctions against both sides if they fail to
meet the deadline.

Local press reports in Khartoum said on Monday that Khartoum and Juba
appear to be headed towards filing a joint démarche requesting the
UNSC to extend the deadline.

However, Sidiq appeared unconcerned by the deadline and insisted that
border security issues and the establishment of a demilitarized zone
remain on top of Khartoum’s priorities.

“The end of the deadline does not mean that the two sides should stop
negotiating but it means that they now have to show greater
seriousness in negotiating a number of contentious issues including
cessation of hostilities, withdrawal from occupied areas and ending of
support to rebel groups,” Sidiq said.

Khartoum accuses Juba of supporting a number of Sudanese rebel groups
including JEM of Darfur and the Sudan People’s Liberation Movement
North (SPLM-N), a former affiliate of South Sudan now fighting the
Sudanese government in the border regions of South Kordofan and Blue
Nile.

BORDER ARBITRATION

The new international border was not demarcated during the six year
power and wealth sharing deal between Juba and Khartoum and the two
sides fought a brief conflict over Heglig/Panthou a contested oil
region in April.

South Sudan’s Amum repeated on Monday his country’s preference to
refer border issues over to international arbitration.

"We favour international arbitration. This, we believe, is the best
amicable way," Amum said.

The two sides has been unable to agree where a non-binding line should
be drawn in order to set up a demilitariseed border zone as buffer
between the two armies.

This is see as an important first step to end hostilities.

The Presidents of the two counties met on the sidelines of an AU
summit a week ago a move that was seen as positive step to move the
negotiations forward.

South Sudan offer also includes a new proposal to resolve the status
of the disputed region of Abyei, suggesting that a referendum be
organised by the AU and the United Nations.

Abyei, was given special status as part of the 2005 deal and was due
to vote in January 2011 on whether to join South Sudan or remain in
Sudan. However, disputes over the formation of the body to run the
plebiscite and voter eligibility scuppered the process.

(ST)

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