Subscribe to our free daily newsletters
  Energy News  




Subscribe to our free daily newsletters



ENERGY TECH
Oil pact key to peace as Sudan splits

by Staff Writers
Khartoum, Sudan (UPI) Mar 30, 2011
Hundreds of people have been killed in recent weeks along the still-to-be-defined border between Sudan and the breakaway state of South Sudan, mostly in oil-producing areas.

The bloodletting, pitting proxy militias of the northern Arab-dominated regime in Khartoum against former rebels in the Christian and animist south, underlines how vital it is that they negotiate an oil wealth-sharing pact if there is to be a durable peace.

The south, which voted overwhelmingly for secession in a January referendum, is scheduled to become the world's newest state July 9.

Tensions between the two sides have reached worrying levels in recent weeks amid a surge in violence. The flash points are the border states of Unity, Upper Nile and Jonglei, where most of the oil fields lie.

Marauding militias led by renegade southern commanders, all veterans of the 1983-2005 civil war, are widely believed to be paid and directed by Khartoum to destabilize the south.

They have repeatedly clashed with southern forces. Hundreds of people, mainly civilians, have been killed in what appears to be a determined northern effort to seize control of the border zones before the frontier has been demarcated.

On March 12, the Sudan People's Liberation Movement, which has governed the south since a 2005 Comprehensive Peace Agreement that ended 22 years of civil war, suspended negotiations with Khartoum.

The following day, the south signed its first oil cooperation agreement with Malaysia's state-run Petronas, which has been operating in the south under an agreement signed with the Khartoum government.

Similar deals are expected to be signed with the China National Petroleum Corp. and India's Oil and Natural Gas Corp. which also have operations in the south dating from Khartoum's rule.

South Sudanese Energy Minister Garang Diing Akuong met with senior officials from all three companies in Juba, the southern capital, March 15 and assured them their contracts were under no threat.

But distrust between the two sides is deepening and threatens to undermine moves toward a settlement on the thorny oil issue.

Central to these negotiations is the fact that for now at least the only export route for southern oil is through a pipeline running north to Port Sudan on the Red Sea.

With independence, the landlocked south will have no option but to go on using that 1,000-mile pipeline.

That gives Khartoum considerable clout at the negotiating table with the SPLM, which governs the south.

The outcome of those negotiations on revenue-sharing will be a significant indicator of the prospects for a peaceful separation in July.

"The geographic separation between oil resources and infrastructure has created an environment of mutual dependence that will be the foundation of a new post-referendum, oil deal," the Middle East Economic Digest reported.

"Neither side can afford to lose that revenue stream," said Roger Middleton, a Sudan specialist at the Royal Institute for International Affairs in London. "So the reality is that they have to reach some kind of agreement."

With the south only weeks away from declaring independence, its leaders are pushing to develop new pipelines that bypass northern territory.

One alternative is a route through Kenya to a deep-water port at Lamu on the Indian Ocean the Nairobi government plans to build. An oil refinery at Lamu is also on the cards.

But this and other projects are possibly four or five years away, if they go ahead.

Meantime, oil is the only economic asset the impoverished south has, so holding onto as much production as possible is vital for the survival of the infant state.

Sudan's the third largest oil producer in sub-Saharan Africa. Reserves are pegged at 6.7 billion barrels. Eighty percent of oil production is in the south.

Sudan produced 490,000 barrels per day in 2009 but by November 2010 that was up to 500,000 bpd, generating $5 billion a year in revenue.

Under a revenue-sharing deal that was part of the 2005 peace pact, north and south agreed on a roughly 50-50 split. That now has to be renegotiated.

Global Witness, a non-governmental organization, has questioned implementation of the revenue-sharing agreement and many southerners believe northern officials are skimming off oil revenues.

"Suspicions over the sharing of oil revenues have greatly added to the mistrust between the two parties," MEED observed.



Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


ENERGY TECH
ExxonMobil to drill off Vietnam: official media
Hanoi (AFP) March 31, 2011
US oil giant ExxonMobil will begin exploratory drilling off central Vietnam in late April, official media reported Thursday, potentially angering China, which has objected to similar plans in the past. The project will be located at "Block 119" off Danang city and the adjacent Quang Ngai province, the Vietnam News reported, but it was not immediately clear if the drilling was in a disputed a ... read more







ENERGY TECH
US energy future hazy on Japan, environment fears

Report: China leads in low-carbon energy

Lights off as 'Earth Hour' circles the globe

Lights out as Tokyo lives with power crunch

ENERGY TECH
Oil pact key to peace as Sudan splits

Oil prices rally on Mid East tensions

ExxonMobil to drill off Vietnam: official media

Oil prices stable after US stocks report

ENERGY TECH
US hopes to resolve China wind turbine rift

Nordex USA Enters First 300MW Joint Venture

Developing The Next Generation VENTOS CFD Model

GL Garrad Hassan Helping To Realize Largest US Wind Farm Development

ENERGY TECH
Carmanah EG340 Solar Lights Illuminate Latin America Roadway Network

Spire's Spi-Sun Solar Simulator To Go To The European Joint Research Center At ISPRA

Helix Water District Unveils New Clean Energy Source

The Future Of Concentrating Solar Power Technologies

ENERGY TECH
Japan PM says stricken nuclear plant to be scrapped

Austria's mothballed nuclear plant pulls in the public

France's Areva to expand Japan nuclear help

Independent nuclear watchdog for India?

ENERGY TECH
Camelina-Based Biofuel Breaks Sound Barrier

Energy Policy Must Help US Companies Commercialize Innovative Biofuel Technologies

Blocking Carbon Dioxide Fixation In Bacteria Increases Biofuel Production

Construction Begins LanzaTech Ethanol Demo Plant

ENERGY TECH
What Future for Chang'e-2

China setting up new rocket production base

China's Tiangong-1 To Be Launched By Modified Long March II-F Rocket

China Expects To Launch Fifth Lunar Probe Chang'e-5 In 2017

ENERGY TECH
Cutting Carbon Dioxide Helps Prevent Drying

UC Research Explores Why Ancient Civilization Was Living On The Edge

Brazil needs to push to unblock climate talks: Clinton

Carbon tax not behind state rout: Australia PM


The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement