South Sudan resumes oil flow via Sudan after "temporary blockage"


May 22, 2013 (JUBA) - South Sudan’s oil minister said late on
Wednesday that it had resumed oil production and flow to the
international markets through the territory of neigbouring Sudan after
a temporary blockage at Jebellen.
South Sudan oil minister Stephen Dhieu Dau celebrates on May 5, 2013
with local dancers in an oil production facility in Paloch in Upper
Nile state, the resumption of oil production after a 16-month hiatus
(Getty)
Minister Stephen Dhieu Dau did not provide any reason for the
blockage, which sparked uncertainty in the country whose budget relies
heavily on oil revenue due to the neglect of agriculture and the
problems in establishing a reliable taxation system.

The minister assured commitment of his government to fully implement
the cooperation agreement which Juba signed with the government of
Sudan in September 2012.

Early this week Juba accused Khartoum of instructing oil companies to
stop production from some oil fields, although this has been denied by
the Sudanese government, who have described fall in oil flow as a
technical issue.

South Sudan’s foreign minister, Nhial Deng Nhial, said Wednesday that
the government had "received information that these technical problems
apparently are being addressed and the pumping station number two
apparently is going to open sometime in the course of today."

Minister Dhieu told Sudan Tribune on Wednesday from Sudanese capital
Khartoum that the implementation of cooperation agreement "will build
trust and confidence between the countries. The implementation of oil
agreement will be a catalyst to the other agreements.”

Dhieu said he was invited to Khartoum by his Sudanese counterpart Awad
Ahmed Al-jaz for a discussion on the way the two ministers could work
together to ensure that a similar incident is avoided from occurring
in the future.

In Juba, South Sudanese Minister of information and broadcasting
service Barnaba Marial Benjamin said the oil will resume at its
previous capacity of 200 barrels per day.

"The oil will flow again this afternoon today. There was a temporary
blockage at station number two (2) at Jebellen and it has been
resolved", Marial told reporters after a cabinet meeting on Wednesday.

He said the visit of the minister to Khartoum will clear the air and
resumption of normal operation of the oil workers in the area but also
did not give a reason for the blockage.

Wednesday’s cabinet meeting, chaired by president Salva Kiir Mayardit,
was dedicated to the oil shutdown, with the minister of petroleum and
mining submitting a report on the visit of the technical committee
which was dispatched to the site on Monday.

KIIR’S SHUTDOWN WARNING

President Salva Kiir had warned on Monday that South Sudan could once
again be forced to shut down the flow of oil to the international
markets through Sudanese territory.

President Kiir made the remark at a police graduation ceremony in Juba
on Monday during which he called on the public to continue tightening
their belts and help his government to address post-secession disputes
with the government of neigbouring Sudan with which they have been
unable to settle sticking issues.

“There could be oil shutdown again if [the Sudanese government]
continue to use playing tactics and denials. We are still working with
them [Sudan] in a diplomatic way. We want to see that they are the
ones who have started it so that we are not blamed again by their
friends”, Kiir Monday.

Kiir’s comments are presumed to have prompted the ministry of foreign
affairs and international cooperation to summon the Chinese and
Sudanese ambassadors over issue.

Officials at the country’s petroleum and mining ministry say the
stoppage began on Saturday when security operatives “tied nuts” and
chased away oil workers from the Tharjath oil field in Unity state.

The White Nile Petroleum Operating Company, which runs the oil field
has declined to make a comment.

The Sudanese ambassador to Juba, Mutrif Sadiq, said his government did
not authorise the closure but said there may have been a
misunderstanding which he thinks was not brought to the attention of
the leadership.

Sadiq said he has been in contact with Khartoum over the issue and
they were making necessary efforts to find out what actually happened;
adding that he hopes it will be resolved soon.

The Sudanese diplomat made the remark after he was summoned by the
South Sudanese ministry of foreign affairs and international
cooperation on Tuesday after Chinese ambassador pledged his country
would make some contacts with Sudan to issue is addressed promptly.

Oil production resumed last month after Juba stopped exports through
Sudan in January 2012 due a transit fee dispute.

REACTIONS TO THE FEARS OF OIL CLOSURE

South Sudanese minister of information, Barnaba Marial Benjamin, on
Monday told Sudan Tribune he was not aware of the closure but later
accepted there was “a technical matter” which the government was
investigating.

The undersecretary at the ministry of petroleum and mining, Machar
Aciek Ader, declined to give any comment when by Sudan Tribune
contacted him on Monday and Tuesday.

Ader was one of the senior government officials dispatched to the site
to investigate the incident.

Officials at the ministry claimed he had forwarded the report to the
minister confirming initial reports indicating that the flow of oil
had been restricted by Sudanese security operatives who had interfered
in the technical activities of the oil workers.

A senior government official at the ministry parliamentary affairs
told Sudan Tribune on Wednesday that South Sudan’s 2011 independence
was incomplete if it continues to rely on Sudan for oil exports.

“I never felt in life that Sudan would not one day honour any
agreement to our satisfaction. There are numerous examples I can cite.
The most recent example is the implementation matrix. Our forces
withdrew but what did they do, they refused and the international
community is quiet”, he said, referring to the September cooperation
agreement in which both sides agreed to pull their troops back from
the tense and disputed border.

The official who did not want to be identified said the government
abandon the idea of relying on the Sudanese pipeline and concentrate
efforts in the construction of the alternative pipeline to the East
Africa coast.

Jok Dut, resident of Juba from Upper Nile State says Khartoum does not
understand diplomacy and said South Sudan should pursue the
possibility of an alternative pipeline to Kenya, through Uganda to
Kenya, or to Djibouti through Ethiopia.

(ST)

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