Sharing Sudan's oil wealth
2004-01-08 09:34
Kenya - Sudanese government and rebel officials have signed an agreement on sharing the nation's wealth, eliminating a key obstacle to reaching a comprehensive peace accord in Africa's longest-running war.
Among the riches to be shared by the government and the Sudan People's Liberation Army is revenue from the 250 000 barrels of oil per day coming from the south.
The two sides agreed to split net oil revenue from the south equally during a six-year transition period.
The agreement would also set up a monetary system allowing for Islamic banking in the north and Western banking in the south, and introduce a new national currency. Currently, all Sudan's major banks are run under Islamic law, which forbids most forms of interest.
Sudan has proven oil reserves of over 1 billion barrels and prospects of an additional 1 billion to 4 billion barrels.
Under Wednesday's agreement, a petroleum commission made up of representatives from the north and the south, as well as from the oil producing states, will be set up to manage the oil sector. But the agreement also said all current oil contracts will be respected.
The parties agreed that non-oil revenue from the south also will be split 50-50, while all northern revenue will be distributed to northern states and the national government.
In July 2002, shortly after the peace process began, the parties agreed to a six-year transition period during which the south will have a regional administration. After that period, southerners will vote in a referendum on whether to secede.
- SAPA