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.
Reporters were allowed to view a letter from Petrodar stating that the company refused to comply with Khartoum’s request. The letter was shown to reporters by Pagan Amum, South Sudan’s top negotiator.
"This action is not acceptable as the crude belongs to (South Sudan) government and prior approval from (South Sudan) is therefore needed," the letter read.
The request by Khartoum is likely to further increase tensions between the two countries, making any resolution of their row on oil transit fees even harder to bring to an end. The South began shutting in production last week as a result of the ongoing transit fee issue, and also signed a pipeline deal with Kenya.