Sudan accuses south of seizing Sudapet
The Sudanese government on Thursday blasted what it claimed was a decision by South Sudan president Salva Kiir to confiscate shares of its state oil firm Sudapet.
According to Sudan foreign ministry spokesperson Al-Obaid Marawih, Kiir ordered that the shares be transferred over to Nilepet which is South Sudan’s state oil company.
The Sudanese official said that they have received a formal notification on the move by Sudapet’s Deputy General Director Ali Farouq.
Marawih urged South Sudan to reconsider the decision, warning of its negative impact on the path of negotiations between the two nations on post-secession issues that are held under the auspices of the African Union (AU).
He stressed that the contracts of the Sudan with international oil companies stipulated obtaining a percentage of revenues payable to Sudapet. Marawih said that Kiir’s directive overlooks the fact that Sudapet does not belong to South Sudan.
South Sudan seceded from the north on July 9th, the culmination of a 2005 peace deal that ended decades of civil war. North Sudan lost 75 percent of its 500,000 barrel-a-day oil production after the south became independent, but oil is still flowing through its territory to reach buyers.
Sudan’s state-owned oil firm Sudapet has stakes in all producing projects in south Sudan, whereas South Sudan’s company Nilepet is not currently present in these projects.
Marawih said Sudan was surprised by this move and its timing, and considered it an "odd" one which contradicted the spirit of cooperation Khartoum extended to its southern neighbor since the country’s breakup.
He noted that Sudan allowed South Sudan to export its oil through the north despite lack of agreement on the transit fees charged for using the pipelines that extend all the way to Port Sudan.
The spokesperson stressed that South Sudan must compensate Sudapet saying the value of the shares amounts to $2 billion.
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