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The shutdown of oil production in South Sudan could create a “humanitarian crisis situation” if the government has to cut vital services, said Valerie Amos, United Nations Under-Secretary-General for Humanitarian Affairs.
Stephen Dheiu Dau said his old civil war foe in the north, the government of Khartoum, had stolen the crude, illustrating the depth of acrimony and mistrust over oil negotiations that some say risks tipping the two nations back into conflict.
South Sudan’s president has raised the prospect of renewed fighting with neighbouring Sudan after the recent collapse of talks over oil revenues, saying a proposed deal “would guarantee future and possibly immediate conflict over land, people, and oil”.
President Salva Kiir said on Thursday South Sudan wants to end a row with Sudan over oil transit payments but has rejected a proposal requiring Juba to pay billions of dollars and keep exporting crude through the neighbouring country.
Petrodar Operating Co., an oil- pipeline operator in Sudan, said it has reported production volumes to South Sudan’s government “accurately and transparently” since beginning output in 2006.
Sudan, stepping up its rhetoric, accused South Sudan of "hostility" in their row over oil transit fees and said it would hold Juba responsible for any attack on northern oil facilities, a state-linked news website said on Wednesday.
Sudan has attributed the failure of the latest round of talks with South Sudan on oil to Juba’s “negative attitude,” accusing its southern neighbors of plotting to topple the government in Khartoum.
Despite the mediation of former South African President Thabo Mbeki, negotiations before independence (and since) left several unresolved issues to fester: How much the South would pay to transport oil through the North, where the actual border would lie (especially the status of the disputed region of Abyei), debt sharing, and what the citizenship status of South Sudanese remaining in the North, and vice versa, would be. In addition to tension surrounding these questions, a wider opposition that includes the three major Darfur rebel movements, the Northern arm of the Southern political movement, is growing. It is making this moment all the more precarious for Khartoum. In fact, the tangle of contestations and conflicts across the country marks the most serious challenge to the survival of Omar al-Bashir's Islamist government since it usurped power more than two decades ago.
The government in Khartoum has requested that Petrodar, one of the JV companies responsible for South Sudan production, load 600,000 barrels of South Sudanese crude for export. Petrodar denied Khartoum’s request backing the south’s right to the crude. Petrodar said that it needed the government in South Sudan’s permission to load the crude for export.
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