cfc- in focus- sudan oil dispute, 07 february 2012

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    C I V I L - M I L I T A R Y F U S I O N C E N T R E

    Mediterranean Review

    This document provides the In Focus excerpt from the MB Weekly 07 February. The In Focus section of the weekly gives ourreadership a more

    detailed reporting of an event or topic of particular relevance in the Mediterranean Basin and other regions of interest. In Focus pieces

    provide hyperlinks to source material highlighted and underlined in the text. For more information on the topics below or other issues pertaining

    to the region, please contact the members of the Med Basin Team, or visit our website at

    07 February 2012Comprehensive Information on Complex Crises

    Sudan Oil Dispute

    By Angelia Sanders

    Sudan and South Sudan are locked in an intense dispute over how to manage the two countries

    oil wealth. At the heart of the dispute is the issue of transit fees South Sudan must pay Sudan in

    order to transport South Sudans oilnorth from the oil fields located in South Sudan to the sea

    ports in Sudan, reportsReuters. According toAfrica Confidential, Sudan is demanding an exorbi-

    tant USD 30 per barrel in transit fees(the international rate is USD 0.40 1.00). South Sudan has

    stated that it will only pay USD 0.63-0.69 per barrel, in addition to a one-time payment of USD

    1.7 billion to compensate for Sudans major loss in oil revenue when South Sudan officially

    gained independence in July 2011. When South Sudan refused to pay the high transit fee, Sudan

    seizedat least four oil-laden South Sudanese tankers bound for export as compensation until an

    agreement was reached, reportsReuters. In response to the theft, South Sudan moved to sus-

    pend its oil production, reportsAl Jazeera.

    The Institute for Security Studies (ISS) reports that the African Unions High Level Implementa-

    tion Panel (AUHIP) proposed two optionsto end the deadlock. However, South Sudans Presi-

    dent Salva Kiir rejected the African Unions mediation proposalwith Sudan because it required

    South Sudan to pay Sudan billions of dollars and to ship crude from certain oil fields through

    Sudans pipelines to the Red Sea, reportsBloomberg. Kiir felt that the deal would have kept

    South Sudan dependent on the north for exports.

    In order to reduce this dependency, South Sudan and the Kenyan government signed a memoran-

    dum of understanding to build an oil pipelinefrom South Sudan to the Kenyan port of Lamu.

    According to the Sudan Tribune, a spokesman for South Sudan says that potential investors have

    been identified. However, South Sudanese rebels have threatened theproposed construction.

    As the oil dispute continues, both sides accuse the other of not seeking a fair deal, reportsReu-

    ters. Sudan has said that South Sudan is becoming hostile and will hold South Sudan responsi-ble for any attempt to target or sabotage oil fields. Reuters further reports that Sudan President

    Omar Hassan al-Bashir said on 03 February that we could go to warif we are forced to go to

    war. The Vice President of South Sudan Riek Machar however has dismissed Bashirs state-

    ments and said that we will not go to warwith the north, reports the Sudan Tribune. TheAsso-

    ciated Press(AP) reports that UN secretary general Ban Ki-moon has called the dispute between

    the two countries a serious threat to peaceand security in the region.

    Angelia Sanders is a Knowledge Manager at the CFC. She holds a Masters in Public Health and a MA inInternational Affairs. Her work experiences include the Peace Corps in Kenya and three years in South

    Sudan working for the Carter Center.

    In Focus Excerpted fromMB Weekly 07February 2012

    The Civil-Military Fusion Centre

    (CFC) is an information and

    k n o w l e d g e m a n a g e m e n t

    organisation focused on improving

    civil-military interaction, facilitatinginformation sharing and enhancing

    situational awareness through the

    CimicWeb portal and our weekly

    and monthly publications.

    CFC products link to and are based

    on open-source information from a

    wide variety of organisations,

    research centres and media sources.

    However, the CFC does not endorse

    and cannot necessarily guarantee

    the accuracy or objectivity of these

    sources.CFC publications are

    independently produced

    by Knowledge Managers

    and do not reflect NATO

    policies or positions of any

    other organisation.

    The CFC is part of NATO Allied

    Command Operations.

    For further information, contact:

    Med Basin Team LeadLinda

    The Mediterranean


    CONTACT THE CFC,41418,41418,41418