S. Sudan cabinet forms emergency committee on oil issue

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June 9, 2013 (JUBA) – South Sudan cabinet on Sunday put in place an
emergency committee, comprising officials from oil companies and the
Petroleum ministry, to monitor the country’s oil situation.


South Sudan cabinet in session September 1, 2012 (file/photo ST)
The decision was reached at a crisis meeting held in the capital,
Juba, a day after neighbouring Sudan announced it had ordered the
closure of the pipeline that transports crude oil from the landlocked
nation to its Port Sudan.

South Sudan president, Salva Kiir chaired the meeting, which lasted
nearly five hours.

The Sudanese leader, on Saturday, ordered oil minister Awad al-Jaz to
block the pipeline carrying South Sudan’s crude all the way to Red Sea
coastal city of Port Sudan.

Bashir, who was speaking in Khartoum state, said this decision was in
response to Juba’s continued support to the Sudan Revolutionary Front
(SRF) rebels fighting Khartoum on multiple fronts.

The Sudanese president said the decision was taken after thorough
study to examine its advantages and drawbacks.

At least 6 million barrels of South Sudan’s crude oil, according to
South Sudan information minister, had reached Port Sudan, hours before
the Sudanese president ordered for the blockage of oil flow from the
south.

“An additional 700,000 barrels [of oil] was flowing through the
pipeline to from Paloch in South Sudan to Jebellen in Sudan”, Barnaba
Marial Benjamin told reporters shortly after the meeting.

He however said the southern government was yet to receive official
notification from its Sudan in relation to the oil matter.

President Kiir and other senior officials, on Saturday, held an
informal meeting to devise new mechanisms, after Khartoum announced it
would halt oil flow from the south.

Sources told Sudan Tribune that the night meeting, which took place at
the president’s residence, was attended by senior government
officials, who included the ministers of the presidency, oil, defense,
information, cabinet affairs, security, finance, cabinet and foreign
affairs.

Sudan and South Sudan, in September of last year, signed a series of
cooperation agreements, which covered oil, citizenship rights,
security issues, banking, and border trade, among others.

The two countries, in March, also signed an implementation matrix for
these cooperation agreements.

The decision to close the oil pipeline comes two weeks after the
Sudanese leader issued an ultimatum, demanding that its southern
neighbor stops its alleged support to rebel groups.

Juba has repeatedly denied these claims and instead accuses Khartoum
of using proxy wars to fight its leadership.

South Sudan took with it nearly 75% of oil it previously shared with
neighboring Sudan, when it broke away from the latter in July 2011 as
part of the peace accord signed six years earlier.

In January last year, however, the young nation shut down its oil
production over a dispute with Khartoum over transit fees. Revenues
from oil initially accounted for nearly 98% of South Sudan’s annual
budget.

(ST)

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