900+ oil wells shut down – S Sudan

2012-01-26 09:23

kalahari.com

  • Reef Fishes and Corals
    This colourful guide contains concise information on 234 reef fish and 36 coral species found along... Now R175.00
    buy now
Addis Ababa - A South Sudan official said the country has shut down more than 900 oil wells after accusing neighbouring Sudan of stealing its oil.

Pagan Amum, the secretary general of South Sudan's ruling party, said on Wednesday that the shutdown will have a big impact on the new nation, which relies heavily on oil revenues.

But he said he'd rather see the country's oil sit in the ground than lose it to Sudan.

"That is even worse," he said.

The news from Amum came one day after South Sudan and Kenya signed a memorandum of understanding to build a pipeline from South Sudan's oil fields south to Lamu, on the northern Kenyan coast, where a new port is planned.

The project has been a matter of speculation for the last few years, but South Sudan's Oil Minister Stephen Dhieu Dau said planning for the project will now begin as soon as possible.

"We do not know exactly when, but the pipeline is a priority for the government," he said.

The agreement, signed by Kenyan Prime Minister Raila Odinga and South Sudan President Salva Kiir in Juba, comes as bitter negotiations between Sudan and South Sudan flounder.

At the centre of the talks are pipeline fees being charged by Khartoum. All of South Sudan's oil currently runs through Sudan's pipelines to Port Sudan for export. Khartoum has asked for $32 per barrel of oil shipped through the pipes, but South Sudan has called the offer extortion.

Losing massive amounts of money

South Sudan has in turn offered $1 per barrel, an offer which information minister Benjamin Barnaba Marial said was "the highest in the world."

Dau said Kenya has agreed to set fees for its planned pipeline "based on the best state practices." He said a planning committee would be immediately formed to work out the financing for the pipeline as well as the "environmental issues and social issues" surrounding its construction.

Landlocked South Sudan on Sunday started to halt oil production after accusing Sudan of stealing $815m worth of the south's oil. South Sudan broke away from Sudan last July to form the world's newest country. But the two new neighbors never agreed on the transit fees that South Sudan should pay Khartoum.

Amum said the oil shutdown would be completed within two to three days. He said South Sudan is also approaching Ethiopia about developing a new pipeline that would eventually go to port through Djibouti.

While South Sudan is losing massive amounts of money by shutting down its oil industry, Sudan is losing money as well, and risks losing future revenue if South Sudan completes new pipelines out if its territory.

- SAPA
Read more on:    south sudan  |  east africa
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Music

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Up to 40% off fashion accessories

Save up to 40% on selected handbags, purses, watches, jewellery and more. Offer valid while stocks last. Shop now!

Save up to R2000 on top electronics

Get every day mind bowing savings on top electronics. Offer valid while stocks last. Shop now!

As seen on TV - New book releases at only R199 each

Get mind blowing book savings on new titles. Offer valid while stocks last. Shop now!

Save up to 50% on Women’s month treats!

Celebrate the awesome women in your life with awesome treats like beauty products, fashion accessories, bestselling books, electronics and more. Offer valid while stocks last. Shop now!

Up to 60% off - clearance sale!

Save up to 60% on appliances, books, electronics, toys, movies and more. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

The quest for understanding has reached a new intense emotional level. The more tempestuous your emotions are, the bigger the...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.