South Sudan spites itself with oil well shutdown

A South Sudan official says they are shutting 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 the shutdown would have a big impact on the new nation, which relies heavily on oil revenues but he would rather see the oil stay in the ground than lose it to Sudan. “That is even worse,” he said.

At the centre of the dispute are pipeline fees being charged by Sudan. All of South Sudan’s oil currently runs through Sudan’s pipelines to Port Sudan for export.

Khartoum has asked for $32 per barrel but South Sudan has called this extortion and offered $1 per barrel, which it says is the highest in the world.

The landlocked South on Sunday started to halt oil production after accusing Sudan of stealing $815-million worth of its oil. South Sudan broke away from Sudan in July 2011 to form the world’s newest country but the neighbours did not agree on oil transit fees.

‘A priority for government’
The shutdown came a 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 would begin as soon as possible. “We do not know exactly when but the pipeline is a priority for the government,” he said.

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

While South Sudan is losing large 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. —

Staff Reporter
Guest Author
Advertisting

‘Judge President Hlophe tried to influence allocation of judges to...

Deputy Judge President Patricia Goliath accuses Hlophe of attempting to influence her to allocate the case to judges he perceived as ‘favourably disposed’ to former president Jacob Zuma

SAA grounds flights due to low demand

SAA is working to accommodate customers on its sister airlines after it cancelled flights due to low demand

Lekwa municipality won’t answer questions about why children died in...

Three children are dead. More than a dozen homes have been gutted by fires in the past six months. And, as...

Failure to investigate TRC cases during the Mandela era delayed...

Counsel for late trade unionist Neil Aggett’s family decries the slow pace of instituting an inquest into his death
Advertising

Press Releases

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.

KZN teacher educators jet off to Columbia University

A group of academics were selected as participants of the programme focused on PhD completion, mobility, supervision capacity development and the generation of high-impact research.

New-style star accretion bursts dazzle astronomers

Associate Professor James O Chibueze and Dr SP van den Heever are part of an international team of astronomers studying the G358-MM1 high-mass protostar.

2020 risk outlook: Use GRC to build resilience

GRC activities can be used profitably to develop an integrated risk picture and response, says ContinuitySA.

MTN voted best mobile network

An independent report found MTN to be the best mobile network in SA in the fourth quarter of 2019.

Is your tertiary institution is accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.