Africa > East Africa > South Sudan > Sudan earns $236 million from South Sudan oil fees

South Sudan: Sudan earns $236 million from South Sudan oil fees

2013/08/28

Sudan earned additional than $230 million in fees for the export of South Sudanese oil this year, official media reported on Sunday, days before a Khartoum deadline to shut the pipelines.

“The government of South Sudan sent the fees for oil transportation to the Sudan Central Bank,” the official SUNA news agency quoted the bank’s assistant governor, Azhari al-Tayeb al-Faki, as saying.

The documented all is $236 million, SUNA said.

That figure covers fees for transporting South Sudanese oil to the Port Sudan export terminal, inclunding a package to compensate Khartoum for the loss of oil at the same time as South Sudan separated, SUNA said.

The South became independent two years ago. It split with about 75 % of united Sudan’s oil production, leaving the country without its major source of export earnings.

Inflation soared and the Sudanese pound plummeted in price on the black market.

Oil refineries and export pipelines remained under Sudan’s jurisdiction but the two sides could not acknowledge on how much the South should pay for using that infrastructure.

South Sudan’s government in Juba halted oil production early last year, accusing Khartoum of theft, but pumping resumed in April next relations between the two sides appeared to be improving.

In June, Sudan accused the South of backing rebels on Sudanese soil and abruptly told oil companies they had 60 days to stop transporting the crude.

The deadline has been extended twice and is presently set for September 6 while oil continues moving through the pipelines for export.

The extensions came in response to an appeal from the African Union which asked for additional time to investigate allegations -- by both Sudan and South Sudan -- that they are supporting rebels operating in each other\\\'s territory.

Regional nations as well began to address an extra point of contention between Sudan and South Sudan, determining the centerline of a demilitarized buffer zone along the disputed border.

On Friday, the United Nations Security Council urged Khartoum to suspend any actions to halt the oil flow and said the two nations should “maintain dialogue” to ensure the oil keeps moving.

The fees due to Khartoum, and the export revenues for the South, are potentially worth billions of dollars to both impoverished economies.

Related Articles

A motor vehicle assembly plant. East African states are tightening controls on used car imports in a drive to cut pollution and boost the local manufacturing industry.
2016/06/13 East African states are tightening controls on used car imports in a drive to cut pollution and boost the local manufacturing industry. Kenya recently announced that it would scale up its used car emissions laws, joining Uganda which has by presently introduced related taxes. Cabinet Secretary in Kenya’s Ministry of Transport James Macharia said that the policy would any minute at this time be in place and that motorists found to be in breach of the law risk having their cars deregistered. “By the end of the year, we will require vehicles countrywide to undergo a mandatory inspection to determine their level of toxic emissions,” said Mr Macharia.
Routes Africa forum aims to improve African air connectivity
2016/05/15 An event dedicated to the development of the African aviation industry will take place next month in Tenerife (26-28 June) to encourage the launch of new air services to, from and within the African continent. Routes Africa 2016 will help to improve African connectivity by bringing together airlines, airports and tourism authorities to discuss next air services. Around 250 route development professionals are expected to attend the forum which was founded ten years ago to stimulate increase in the industry.
While Europe is on the verge of breaking up, Africa is reaping the benefits of integrating, growing and developing its trading blocks
2016/05/13 The collapse of virtual borders is one of the majority remarkable things to have happened in our lifetimes. In the world of cyberspace, time and distance have become almost peripheral considerations at the same time as it comes to doing business. Services from software development to accounting can be delivered across the world in the blink of an eye. Next business leaders will struggle to imagine an era at the same time as communication was neither immediate nor virtually free.
Africa’s economic growth is likely to be slower in the intervening years
2016/05/12 Africa’s economic increase is likely to be slower in the intervening years than in the before decade, according to the new rating by Ernst & Young using a barometer to gauge the level of appeal and success.â€œThe baseline projection of the International Monetary Fund (IMF) for 2016 is presently reduced to 3%, while it was estimated at 6.1% in April 2015″, Ernst & Young points out in its rating.
Raw materials have long been linked to Africa in many business people’s minds
2016/05/11 Oil, gold, diamonds, palm oil, cocoa, timber: raw materials have long been linked to Africa in a lot of businesspeople’s minds. And in fact the continent is highly dependent on commodities: they constitute as much as 95% of some nations’ export revenues, according to the United Nations Conference on Trade and Development. But propping a country’s entire economy on commodities is risky business, like building a mountainside home on stilts. You can’t be sure about the weather, or in this case the commodities market. The current free-fall of oil prices to less than $40 a barrel is a glaring example. “The commodities cycle has tanked out,” says Austin Okere, founder of Computer Warehouse Group (CWG), a Nigerian emerging multinational financial services company. “And this time it looks additional structural than cyclical, so it’s not a matter of waiting it out. Something has to give.”