Oil is a big part of South Sudan economy......post here, relevent articles and discussions. :cheers:

South Sudan sells Dec Nile Blend; highest in 4 years

SINGAPORE (Reuters) - South Sudan sold via tender a cargo of Nile Blend crude for December loading at the highest premium in at least four years as fears of possible confrontation with neighbouring Sudan drove up prices, traders said on Tuesday.

In a sign of new tensions, Sudan on Saturday said it had submitted a new complaint against South Sudan to the United Nations Security Council, accusing it of supporting rebels in two border states in a sign of new tensions between the former civil war foes.

South Sudan sold the 600,000-barrel cargo to Chinaoil at a premium of $1.20 a barrel to Indonesia Crude Price (ICP) Minas, they said.

It also sold a second cargo to European trading company Trafigura at a premium of 90 cents a barrel to ICP Minas, traders said.

Nile Blend's spot premium last surged more than $1 a barrel in 2007 when a massive earthquake rocked Japan, they said.

The heavy sweet crude is popular among North Asian refiners and is typically processed in complex refineries to produce feedstock for fluid catalytic crackers.

Spot discounts for another Sudanese crude, Dar Blend, have also narrowed in recent months.

In a separate tender, South Sudan sold 3.8 million barrels of Dar Blend crude for December loading at a narrower discount than the previous month, partly on stronger fuel oil cracks.

The cargoes were sold to Chinaoil, Unipec and Vitol at around $8 a barrel below dated Brent, traders said.

Reuters (http://af.reuters.com/article/investingNews/idAFJOE7A708920111108)

Oil production in South Sudan has fallen by a quarter since independence four months ago, Unity State's environment minister has told the BBC.

Since the split from the north there has been a shortage of skilled workers, the minister, William Garjang, said.

The rainy season was also making it difficult to repair faulty machinery and several roads have been mined by rebels, he said.

Revenue from oil provides 98% of the new nation's budget.

South Sudan seceded from Sudan in July - the culmination of a peace deal signed in 2005 that ended decades of civil war.

The two countries have yet to agree on sharing their oil wealth.

The BBC's James Copnall in Bentiu, capital of Unity State, says there is growing concern about South Sudan's strong dependency on oil, particularly as the supply may run out in the next two or three decades.

A rebellion waged by a new rebel group, the South Sudan Liberation Army (SSLA), has further complicated matters.

Its fighters are concentrated in Unity State, near many of South Sudan's lucrative oil fields.

The SSLA took up arms earlier this year in protest against corruption, mismanagement of oil revenues and what it believes is the domination of the Dinka ethnic group in the government.

But Mr Garjang told the BBC the rebellion was not disrupting oil production.

Part of the problem was the rainy season, which made it difficult to get machinery to faulty oil facilities to repair them, he said.

But the other major problem was the absence of qualified technical personnel, as many northerners left the oilfields once South Sudan became independent, Mr Garjang said.

BBC News (http://www.bbc.co.uk/news/world-africa-15652524)

South Sudan ministry, not Glencore, to sell oil

By Alexander Dziadosz

JUBA (Reuters) - A South Sudanese oil official ruled out Glencore marketing the new African country's crude on Thursday, effectively quashing an earlier deal the trading giant said it had signed to sell the nation's oil.

The fate of the Glencore deal has been in doubt since shortly after South Sudan declared independence in July, when oil officials said the country's petroleum ministry would be responsible for selling crude.

Ministry of Petroleum and Mining Undersecretary Macar Aciek Ader - who previously worked for the Sudanese Petroleum Corporation in Khartoum - said he was currently the principal seller for South Sudan's crude and that Glencore would not handle future marketing.

"Nobody will accept giving a national resource of this nature to a private company to go and market it. Nobody will do that. Oil is politics, and it will continue to be politics," he told Reuters in an interview.

Asked who would market South Sudan's oil going forward he said: "The ministry will continue to sell it."

South Sudan gets almost all its revenues from oil, but production is likely to decline over the next few decades without new discoveries, pushing the government to seek more exploration and make other improvements.

The International Monetary Fund (IMF) warned last month that South Sudan's oil production would halve by 2020 unless new findings were made.

Aciek said South Sudan could boost oil production to about 500,000 barrels per day (bpd) from about 365,000 bpd now if it is able to do needed facility upkeep and overcome hurdles such as a need for more workers and technology.

"Once the present problems are resolved and production is stabilised, then people will start to plan for increasing the production," he said. "Definitely, it will rise . it will even exceed 500,000 (bpd)."

Aciek said it was too soon to give a timeline for any potential production boost.

South Sudan took about 75 percent of the united Sudan's oil production when it seceded under a 2005 peace deal, but it still needs to pump crude through pipelines in Sudan to export it. The two countries have still not agreed on a transit price.

EXPLORATION

Khartoum has pulled out hundreds of Sudanese oil workers, leaving just 300 foreign workers and 38 Southern Sudanese to run fields in the country's main oil state Unity, that state's oil minister said last week.

Aciek said South Sudan was now producing about 365,000 barrels per day between consortiums Greater Nile Petroleum Operating Company, While Nile Petroleum Operating Company and Petrodar Operating Company.

Aciek said there was no exploration underway in the blocks alloted to Ascom and France's Total SA, partly because it was taking time to relocate oil businesses from Khartoum to Juba.

He said he expected companies to be finished relocating by the end of December, and the government hoped they would begin exploration after that.

"Total is not doing anything now. Ascom is not doing anything. And we are going to ask why. Once all of them are relocated, then we are going to have to question why we are where we are now," he said.

Unipec, the trading arm of China's top refiner Sinopec Corp, was the country's main buyer, purchasing more than 80 percent of South Sudan's oil, Aciek added.

Reuters (http://af.reuters.com/article/topNews/idAFJOE7AG0C120111117)

South Sudan sold 33.4 million barrels of oil, July-December

The newly-founded state, South Sudan, releases oil sales figures

Reuters, Monday 21 Nov 2011 - South Sudan has sold 33.4 million barrels of oil for US$3.2 billion for the period between 9 July and 31 December this year, the petroleum and mining ministry said on Monday.

The country, which declared independence on 9 July, sold 7.2 million barrels of Nile Blend for $800 million and 26.2 million barrels of Dar Blend for $2.4 billion, the ministry said in an emailed statement.

Link (http://english.ahram.org.eg/NewsContent/3/12/27137/Business/Economy/South-Sudan-sold--million-barrels-of-oil,-JulyDece.aspx)

South Sudan Defends Transfer of Sudan’s State Oil Company Shares


By Jared Ferrie - Nov 21, 2011 7:32 PM GMT+1000

South Sudan defended its decision to assume control of the shares held by Sudan’s state-owned petroleum company in southern oil fields, calling it a “legitimate act of sovereignty.”

By a presidential decree on Nov. 8, South Sudan assumed ownership of the stakes held by Sudan’s Sudapet in joint operations with companies such as China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd and India’s Oil & Natural Gas Corp. The Sudanese authorities called the move an “arbitrary decision.”

South Sudan is negotiating new agreements with oil companies operating in the south that should be completed this year, the Ministry of Petroleum and Mining said today in a statement released in Juba, the capital. South Sudan will have sold 33.4 million barrels of oil from July 9 to Dec. 31 for $3.2 billion, according to the ministry statement.

South Sudan assumed control of Sudan’s previous daily production of 490,000 barrels of oil when it gained independence on July 9. South Sudan’s oil ministry said today that the two governments agreed during pre-secession negotiations that the shares would be transferred to southern ownership along with the oil fields upon independence.
Bloomberg (http://www.bloomberg.com/news/2011-11-21/south-sudan-defends-transfer-of-sudan-s-state-oil-company-shares.html#)

very interesting

US says South Sudan’s oil sector open for business for US companies

By Associated Press, Updated: Thursday, December 15, 4:38 AM

WASHINGTON — The Obama administration has declared South Sudan’s oil sector open for business for U.S. companies.

Secretary of State Hillary Rodham Clinton says American investment in the sector was authorized last week after a request from the world’s newest recognized country. South Sudan gained its independent in July.

The license is valid even when good must be shipped through Sudan. The U.S. has penalized Sudan because it is considered a state sponsor of terrorism.

Clinton told a conference on South Sudan that the new country must avoid the “natural resource curse” that ends with a small elite hoarding all the wealth.

American assistance to South Sudan is focusing on agriculture and private investment. Britain is helping with health care. Norway is aiding the oil industry and transparency efforts.

Link (http://www.washingtonpost.com/politics/us-says-south-sudans-oil-sector-open-for-business-for-us-companies/2011/12/14/gIQAeItFuO_story.html)

:cheers:

South Sudan threatens to sue dealers over its "stolen" oil

By Ngor Arol Garang

January 10, 2012 (JUBA) - South Sudan’s oil minister said Tuesday that north Sudan was siphoning off his country’s oil, threatening to instigate legal proceedings against any country or company involved in buying the allegedly stolen crude.

http://www.sudantribune.com/local/cache-vignettes/L320xH213/A_man_examines_a_leaking_oil_pipe_line_at_a_pumping_station_built_next_to_his_village_on_land_that_was_once_used_for_agriculture_Paloch_South_Sudan_Jan-_20_2010-_Courtesy_of_Sven_Torfinn-98943.jpg
A man examines a leaking oil pipe line at a pumping station built next to his village of Paloch, South Sudan, January 20, 2010 (Sven Torfinn)

Since landlocked South Sudan seceded in July 2011 - taking with it 75% of the Sudan’s known oil wealth - the two countries have failed to negotiate a fee for the South to export its oil using north Sudan’s infrastructure.

Last week the South Sudanese government threatened to sue Khartoum over its decision to unilaterally impose monthly charges on its crude oil transported through its pipelines.

"Rather than view the New Year as an opportunity for renewed cooperation, the government of Sudan unilaterally decided to impose economic sanction[s] by blocking exporting our crude and stealing our oil", Stephen Dhieu Dau, Minister of Petroleum and Mining told journalists in Juba.

Dau accused north Sudan over five issues related to the export of its crude oil:

* ordering foreign oil companies to divert South Sudan’s crude oil entitlement for December 2011 into refineries in Khartoum and El-Obeid.

* diverting South Sudan’s monthly production of 550,000 barrels for December to buyers of its own entitlement.

* beginning the construction of a new pipeline to permanently divert 13% of what he called “Dar Blend”.

* preventing two ships carrying 1.6 million barrels of crude oil belonging to South Sudan, as well as preventing one additional vessel from leaving Port Sudan.

* prevented two other ships from entering the port to take possession of 1.2 million barrels of Nile Blend Crude purchased from South Sudan by international buyers.

South Sudan’s oil minister said he denounced the unilateral acts, and described the diversion of its crude oil without its consent as nothing less than” theft”. Dau said that preventing loaded ships from leaving Port Sudan was “unlawful” constituting a clear violation of “international laws” and “norms”.

He said Sudan would take responsibility for all penalties and damages resulting from the "theft" and delays in the shipping schedules.

http://www.sudantribune.com/local/cache-vignettes/L307xH230/Amum_and_petroluem_minister-b3232.jpg

South Sudan’s petroleum minister, Stephen Dhien Dau (L) and Pagan Amum addressing representative of oil companies in Juba. Dec. 18, 2011 (ST)

South Sudan is considering building a pipeline to Kenya to bypass having to use north Sudan’s infrastructure but this is years away from being achieved. In the six months since South Sudan became independent the two countries have failed to reach agreement on oil, assets, debt, citizenship and how to demarcate the poorly defined tense new international border.

The two countries are due to resume bilateral talks this month. The Sudanese president Omer Hassan al-Bashir last week said that South Sudan was not negotiating in good faith and accused Juba of not paying fees for use of its facilities.

Most of the oil fields lie near the border. South has claimed Khartoum is arming South Sudanese rebel groups in order to destabilise the new country and retake control of Unity State’s oil fields.

Khartoum denies this and counters that Juba aids rebels in its territory. South Sudan also dismissed the claims and has accused Sudan’s Armed Forces of bombing South Sudanese territory in recent months.

Macar Aciek Ader, an undersecretary at South Sudan’s oil ministry told the press briefing in Juba the world’s newest country would incur “huge economic” damage if Khartoum continued its stance. South Sudan is one of the poorest regions in the world, with oil accounting for around 98% of the government’s annual budget.

“I really do not know what would happen if Khartoum continues to behave like this. I do not know how much loss it would be, but I think our country would incur huge economic impact”, Ader said.

Minister Dau warned that countries or companies who purchase oil from Khartoum that was "stolen from South Sudan" would face legal action.

“The Government of Sudan and all those that benefit from such illegal acquisitions will find no refuge from South Sudan’s legal authorities and will enjoy no future business with the Government of South Sudan,” the minister warned.

He denied reports alleging that his country was not paying Khartoum charges for using its oil infrastructure including transport and processing fees.

“It is disappointing to mention that Khartoum continues to deny that South Sudan pays charges for the use of its infrastructures. South Sudan is already being charged and is paying pipeline operators significant fees to produce and transport it[s] oil through Sudan but Khartoum remains spreading lies that South Sudan is not paying for the use of its infrastructure”, the minister said.

Barnaba Marial Benjamin, South Sudan’s minister of information, at the same briefing warned Khartoum to treat the world’s newest nation like an independent state with its own territorial sovereignty and resources. He repeated the allegation that north Sudan’s army intended to invade his country because of oil.

However, he said that South Sudan’s military (SPLA) would not let this happen.

“Khartoum thinks that it can invade South Sudan like what Iraq did to Kuwait in 1990. Don’t we know what happened to Iraq? Where is Saddam Hussein now”, minister Marial said.

Marial argued the fact that his country was willing to offer financial assistance of $2.6 billion cash and to write off $2.8 billion of debts and arrears which he said Khartoum owes the people of South Sudan.

This he stressed should be seen as an indication of a country willing to forge better relations with its neighbour.

Both North and South Sudan are currently involved in series of negotiations on several outstanding post-independence issues, under the mediation of the African Union High Implementation Panel on Sudan (AUHIP).

In recent months, however, both countries have continuously accused each other of supporting rebellions seeking to destabilise respective governments. While the north points fingers at its southern neighbour for allegedly backing rebels in South Kordofan and Blue Nile, the south accuses the north of backing armed rebel movements seeking to topple the Juba government.

(ST)

South Sudan Offers Nile, Dar Blend Crude Cargoes for February

By Ramsey Al-Rikabi - Jan 13, 2012 6:19 PM GMT+1000

The Republic of South Sudan offered to sell 4.7 million barrels of Dar Blend and 1.6 million barrels of Nile Blend crude for loading in February, according to a tender document obtained by Bloomberg News.

Details of the sale are as follows:

---------------------------------------------------------------
Crude: Dar Blend (Sudan)
Quantity: 4.7 million barrels
Loading: Feb. 4-5 - 600,000 barrels
Feb. 7 - 300,000
Feb. 8-9 - 600,000
Feb. 11-13 - 1 million
Feb. 18-19 - 600,000
Feb. 21-23 - 1 million
Feb. 24-25 - 600,000
Pricing: Dated Brent
Seller: Ministry of Petroleum and Mining, Republic
of South Sudan
Loading port: Bashayer Marine Terminal, Sudan
Closing: Jan.13
---------------------------------------------------------------
Crude: Nile Blend (Sudan)
Quantity: 1.6 million barrels
Loading: Feb. 22-24 - 1 million barrels
Feb. 26-28 - 600,000 bbl
Pricing: Indonesian Crude Price (ICP) Minas
Seller: Ministry of Petroleum and Mining, Republic
of South Sudan
Loading port: Bashayer Marine Terminal, Sudan
Closing: Jan. 13
---------------------------------------------------------------
Bloomberg (http://www.bloomberg.com/news/2012-01-13/south-sudan-offers-nile-dar-blend-crude-cargoes-for-february.html)

Amum: Sudan’s Control over oil has ended

Sunday, 15 January 2012 20:02 South Sudan >>>

The Sudan People's Liberation Movement (SPLM) Party Secretary General, Pagan Amum, says Sudan's control of the oil resources of South Sudan ended last week.

Speaking to journalists on Sunday at SPLM Headquarters in Juba, Amum said signing new agreements with six foreign companies on Friday ended Sudan's control.

"Legally and formally the oil industry in former Sudan is separated. Now with the signing of these contracts, the control of Khartoum over the oil industry in South Sudan has come to an end," Amum said.

"The companies have legal obligations and responsibility to the government of South Sudan. The government of the Republic of South Sudan is the sole authority to grant permission for these companies to operate in South Sudan," the SPLM party boss added.

Amum pledged the SPLM government's commitment to use the oil resources to deliver services for South Sudanese and future generations.

"The government of the Republic of South Sudan is mandated to put aside a certain percent of the oil resources for the future generation. The present generation can not use the oil resources only for themselves".

Pagan added that the oil revenues will also be used to develop other sectors of the economy to create sustainable and strong economy South Sudan.

At least 98% of the new country's revenue comes from the oil industry.

l



Macar Aciek Ader, an undersecretary at South Sudan’s oil ministry told the press briefing in Juba the world’s newest country would incur “huge economic” damage if Khartoum continued its stance. South Sudan is one of the poorest regions in the world, with oil accounting for around 98% of the government’s annual budget.

“Khartoum thinks that it can invade South Sudan like what Iraq did to Kuwait in 1990. Don’t we know what happened to Iraq? Where is Saddam Hussein now”, minister Marial said.

Marial argued the fact that his country was willing to offer financial assistance of $2.6 billion cash and to write off $2.8 billion of debts and arrears which he said Khartoum owes the people of South Sudan.

(ST)

Let me get this straight according to your enlightened Minister if Sudan charges the South transit fees for using its infrastructure, the US and its allies will be in uproar and invade Sudan?:lol:

Secondly Sudan isn't asking for financial assistance, we are not asking the South to pay transit fees in return for nothing were asking for the money to be paid in return for a service, transportation of your product to the market, if the South doesn't need this service then they can stop using Sudan's infrastructure and hold on to their "financial assistance":D
Until the South does this Sudan will take its share from the oil and the fact that the South is aware that we will be taking a share and yet continues to transport its oil through Sudan's pipeline amounts to an acceptance of the charge.

:nuts: "the fact that the South is aware that we will be taking a share and yet continues to transport its oil through Sudan's pipeline amounts to an acceptance of the charge."

What a retarded thing to say. :lol:

:nuts: "the fact that the South is aware that we will be taking a share and yet continues to transport its oil through Sudan's pipeline amounts to an acceptance of the charge."

What a retarded thing to say. :lol:

I don't see how you can fail to understand my point, if the South is unhappy about the pipeline charges then simply stop using it.

I'm a natural born English speaker Kitayabi, I understood exactly what you said but I still believe that it is the most retarded thing I have read all day.

UPDATE 1-S.Sudan says to shut oil production within 2 weeks

:banana::banana:

JUBA Jan 20 (Reuters) - South Sudan said on Friday it was preparing to gradually shut down oil production within two weeks after Sudan said it had started seizing southern oil to compensate for what it said were unpaid transit fees.

Sudan and South Sudan are locked in a row over sharing oil revenues after Juba took two-thirds of output when it became independent in July.

The landlocked new African nation needs to use a northern pipeline and port to export the crude but has failed to reach an agreement with Khartoum over a transit fee, prompting Sudan to seize part of its oil as compensation.

"The ministry of petroleum and mining will sit down to start a technical process that will lead to a decision that will lead to a complete shutdown. That will be in a week or two weeks," government spokesman Barnaba Marial Benjamin told Reuters.

"We have taken this decision because South Sudan is not benefiting from oil. It is being taken by force by the Republic of Sudan, and the oil that is going through the pipeline is being looted," he said.

"Why would the Republic of South Sudan produce oil for the Republic of Sudan," he said.

Khartoum has said Sudan is seizing some oil and diverting some of it to its two refineries but has not said whether it would try selling any seized oil.

South Sudan has said Khartoum has ordered loading of 2.15 million barrels of its oil onto northern ships at Port Sudan since last week.

Sudan is demanding $1 billion for unpaid transit fees since July plus $36 a barrel in the future as transit fee, roughly a third of the export value of southern oil. Khartoum also wants Juba to share Sudan's external debt of $38 billion.

South Sudan pumps around 350,000 bpd, officials have said. Sudan produces 115,000 bpd in its remaining fields but needs it for domestic consumption.

Sudan's government is under pressure to overcome a severe economic crisis after losing the southern oil, which made up 90 percent of the country's exports. It generated $5 billion in oil revenues in 2010.

Juba has offered Sudan the sale of discounted oil and other financial help, but neither side shows sign of shifting their positions. (Reporting by Hereward Holland; Writing by Ulf Laessing, editing by Jane Baird)

______________________________________________________________

You're so right Kitayabi :nuts: the charge(being taken by force) is completed accepted :nuts:

Like I said if the South's isn't happy with the charge it doesn't have to use the pipeline. Hopefully this is the end of the dispute and the South finds another way of getting its oil to the market. But as the South has no realistic alternatives the South will seek to back track soon enough.

Yes, hopefully this is the end of the dispute :).

"But as the South has no realistic alternatives the South will seek to back track soon enough."
Honestly, that would make absolutely no sense to think South Sudan will back track on the decision. What would be the point of "back tracking soon" into the same situation of your government stealing the majority of South Sudan's exports? There's no benefit from that.

South Sudan instructs oil companies to stop operations

JUBA, 21 January 2012(NASS) –
The Republic of South Sudan has instructed all foreign companies operating in its oil fields to prepare a shut down plan for halting the operation of its oil.


The order was announced by the minister for Information and Broadcasting and the Official Spokesperson of the government of South Sudan, Hon Dr Barnaba Marial Benjamin to reporters yesterday in a press briefing at the Ministry of Information and Broadcasting headquarters.


He said the Republic of South Sudan’s crude oil is now not safe in the Republic of Sudan saying that it is being stolen and prevented from reaching the international market by the government in Khartoum.


“In the last few days Khartoum has stolen approximately over $ 350million worth of oil from South Sudan using force while preventing over $ 400 million from being purchased and this is through restricting vessels from entering or leaving the port by using their security”, Dr Marial explained.

http://www.goss-online.org/magnoliaPublic/en/news/mainColumnParagraphs/01115/content_files/file/DSC_1150.jpg
Hon Marial (right) and Hon Dhieu (left) addressing the media yesterday.
[Photo: Ajang Monychol]



He explained that the decision comes after series of violations from Khartoum. These include:



On the 24th Dec. 2011, government of Sudan (GOS) prevented loading of 600,000 bbls of South Sudan-Nile blend;
On the 30th, Dec. 2011, GOS detained 1000,000 bbls Dar blend sold to Vitol;
On the 31st, Dec. 2011, GOS prevented ships from loading 600,000 bbls of RSS Nile blend;
On the 3rd, Jan. 2012, GOS detained vessels loaded with 600,000 bbls of Dar blend of RSS which belongs to Petronile;
On the 8th, Jan. 2012, GOS detained Sinopec vessels loaded with 900,000bbls Dar blend of RSS;
On the 13th, Jan. 2012, GOS lifted 605,784 bbls Dar blend crude oil of RSS;
On the 16th, Jan. 2012, GOS lifted by force 618712 bbls Dar blend crude oil of RSS;
Also on the same date, GOS instructed PDOC to transfer 120,000 bbls of Dar blend crude oil of RSS to be delivered to Khartoum refinery directly from the illegal pipeline tie into KRC which was partly constructed and operated by GOS;
On the 19th, Jan. 2012, GOS lifted by force 600,000 bbls of RSS’ Nile blend crude oil.


“Indeed, the option of shutting down the oil companies is not the best but the Republic of South Sudan is a sovereign nation and must protect its resources”, said the minister for Petroleum and Mining Hon Stephen Dhieu Dau.


He stated that the oil operations will remain shut until a fair deal is reached with Khartoum or else it will remain so till South Sudan develops its own oil infrastructure that will ensure the people reap the true benefits of their oil.


He also promised to return the oil stolen by Khartoum right from the 24th Dec. 2011 till the last day of the theft. He stressed that he will never give up until the stolen oil is brought back to its rightful owners, the people of the Republic of South Sudan.


He further warned the oil companies involved in buying the stolen that the government of South Sudan has already taken legal procedures to trace them and will take drastic legal action against them.


“I know challenges are there after shutting the oil fields but the government through the Ministry of Finance and Economic Planning has taken measures to address them; we will soon be building our own pipeline to transport oil through the Republic of Kenya”, he said.


Reported by Martin Jada Gabriel, News Agency of South Sudan (NASS)

GoSS (http://www.goss.org)

South Sudan Begins to Shut Down Oil Production, Government Spokesman Says


South Sudan started shutting down oil production amid a deepening dispute with its northern neighbor Sudan over transportation fees for its exports.

The shutdown started in the Thar Jath field in Unity state, government spokesman Barnaba Marial Benjamin said today by phone from Juba, the capital, and will take two weeks to complete. The field is run by the White Nile Petroleum Operating Co., whose partners include Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd. (ONGC), according to the company website.

South Sudan says Sudan is seizing exports that pass through its territory to an export terminal on the Red Sea and is demanding $32 a barrel in transportation fees. Sudan says it is diverting the crude to cover unpaid bills. South Sudanese President Salva Kiir today said Sudan has “looted” $815 million worth of his country’s oil.

“At this time we have no guarantee that oil flowing through the Republic of Sudan will reach its intended destination,” Kiir told Parliament. “We can’t allow assets which clearly belong to the Republic of South Sudan to be subject to further diversion.”

South Sudan took control of about three-quarters of Sudan’s output of 490,000 barrels a day when it gained independence in July. The crude is pumped mainly by China National Petroleum Corp. (CNPZ), Petronas and and ONGC.

China imported about 250,000 barrels a day, or more than 65 percent of total Sudanese exports, accounting for 5 percent of the nation’s imports in 2010, according to data from the U.S. Energy Department.
Crude Prices

The suspension of oil production by South Sudan, which pumps crude of a similar quality to Libya, may bolster oil prices, Commerzbank AG said.

“Any prolonged discontinuation of South Sudan’s oil production, in combination with the partial shortfall in Iranian oil exports, could lead to a tightening of supply on the oil market and cause prices to rise still further,” Carsten Fritsch, an analyst in Frankfurt, said in a report.

Brent oil for March settlement advanced $1, or 0.9 percent, to $110.86 a barrel at 1:36 p.m. on the ICE Futures Europe exchange in London.

The government also issued a statement today telling companies that if they buy or sell “stolen crude” they will be subject to legal action and said it sent letters to the owners of ships loaded with southern oil.

“The presumed owners now are on notice that they are being treated as trafficking in stolen goods,” the government said in an e-mailed statement.

To contact the reporter on this story: Jared Ferrie in Juba, South Sudan at jferrie1@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Bloomberg (http://www.bloomberg.com/news/2012-01-23/south-sudan-begins-to-shut-down-oil-production-government-spokesman-says.html)

:cheers::banana::cheers:

South Sudan oil row: Sudan to release shipments

Sudan says it will release detained crude oil shipments belonging to South Sudan to help end a bitter dispute.

The laden vessels would be allowed to leave Port Sudan as soon as possibile, a Khartoum negotiator said.

The move followed South Sudan's threat to halt production, as talks on the row over oil transit fees broke down.

The newly independent state currently has to use Sudan's infrastructure to export its oil, but halting production would hurt the economies of both.

South Sudan seceded in July 2011, taking with it the lion's share of Sudan's oil - but without agreement on oil transit fees.

The BBC's James Copnall in Khartoum says Sudan needs these oil transit fees to cover the gap in its budget caused by South Sudan's secession.

It has started seizing oil in lieu of the fees.

Three ships carrying 2.2 million barrels of oil have been detained, AFP news agency says.

South Sudan has accused Khartoum of taking oil worth $815m (£518m) in total.

'Stealing'

"President Bashir is ready to make this gesture. Sudan is going to release the vessels detained in Port Sudan," Sayed el Khatib told a news conference in the Ethiopian capital, where talks have been taking place.

Mr Khatib said releasing the ships should open the way for what he called a "cover agreement" between the two countries to be signed - and that Khartoum was ready to do this by the end of Saturday.

There was no immediate reaction from South Sudan.

Late on Friday, South Sudan's lead negotiator, Pagan Amum, said a deal had fallen through because Sudan was "stealing" his country's oil.

He also said the shutdown of South Sudan's oil production would be complete by the end of Saturday.

Oil accounts for an estimated 98% of landlocked South Sudan's budget - but it currently has to use Sudan's pipelines and export terminal to export the oil.

Reuters news agency cited industry sources as saying Sudan had already sold at least one cargo of crude oil seized from South Sudan at a discount of millions of dollars, and was offering more.

Sudan's President Omar al-Bashir and his South Sudanese counterpart, Salva Kiir, have been holding talks in Addis Ababa, brokered by the leaders of Djibouti, Ethiopia, Kenya and Somalia.

Observers say the oil row has created the greatest crisis between the two states since South Sudan became independent, and has stoked fears of a return to war

BBC (http://www.bbc.co.uk/news/world-africa-16773278)

South Sudan shuts down more wells as crisis deal flops

By MACHEL AMOS in Palaug Posted Saturday, January 28 2012 at 14:29

South Sudan oil operators closed more 242 oil wells Friday as the government announced it has unearthed further oil theft of more than 40,000 barrels per day.

This came as President Salva Kiir failed to agree a deal with Sudanese leader Omar al-Bashir to unlock the impasse that has led to the on going shutdown.

The wells were closed in Palaug oil fields in the Upper Nile state which accounts for more than 60 per cent of the country's crude oil output.

Paluag has 600 oil wells and the 242 already shut down have halved the daily output of 250,000 barrels per day, officials said.

The field is held by Petrodar Oil Company, the biggest oil operator in the country.

However, Petroleum and Mining minister Stephen Dhieu Dau said his technicians had discovered that an additional 40,000 barrels were being produced per day on top of 230,000 daily barrels the company reported.

"After the resolution of shutdown, the company here tried to increase the production against what we are actually telling them to reduce to the minimum,” Mr Dhieu said, accusing former civil war Sudan of having a hand.

In the country’s Unity state, which officials now say accounts for nearly 40 per cent of the daily output, all the oil wells have been successfully closed down.

The Council of Ministers, in a sitting chaired by President Salva Kiir, resolved a week ago to shut down the oil pipeline to avoid continuous oil seizure by Sudan along the export route to Port Sudan.

Link (http://www.africareview.com/News/Gambias+Jammeh+backs+out+of+AU+race/-/979180/1315664/-/rlsituz/-/index.html)

Ij5P8IZCcJc

South Sudan to lay pipeline through Kenya

ShOwaazjXII

Total 'readies South Sudan splash'

Total will very soon begin exploration in beleaguered oil-rich South Sudan with company representatives already in the country, a report claims.

Eoin O'Cinneide & news wires 31 January 2012 16:08 GMT

The French supermajor has “committed” itself to begin exploration work this year, Reuters quoted a country official as saying on Tuesday.

An unidentified Total vice president and an entourage are already in the South Sudanese capital of Juba with a view to discussing exploration plans, the news wire quoted the country’s chief negotiator, Pagan Amum as telling reporters.

"Total has already committed themselves to start exploration this year, actually this month. They are here. The vice-president is in town. They are welcome,” Reuters quoted Amum as saying.

Total is eyeing exploration in Jonglei state, Reuters said, with any oil discovered in Block B possibly destined for a prospective pipeline to be build between South Sudan and the Kenyan Indian Ocean town of Lamu.

Nobody was immediately available for comment at Total on Tuesday afternoon.

South Sudan, the world’s newest nation, continues to be at loggerheads with its neighbour Sudan to the north over oil revenue sharing. When the former split from the latter it took with it around three quarters of the around 500,000 barrels of oil produced per day in the once unified country.

Sudan continues to press is neighbour to the south for a significant cut of its oil revenues for use of its infrastructure including pipelines and Port Sudan. This led to Sudan recently seizing eight shipments with a total of 6.3 million barrels of oil worth a combined $630 million.

In response South Sudan has shut in its oil production with talks between the presidents of both nations set for the Ethiopian capital Addis Ababa in an effort to resolve the impasse.

Tensions were ratcheted up even further, however, after South Sudan last week penned a memorandum of understanding with Kenya for a pipeline to be constructed to Lamu.

Link (http://www.upstreamonline.com/live/article300957.ece)

Kenya, South Sudan to form team for oil pipeline project

By ZEDDY SAMBU

Posted Monday, January 30 2012 at 21:04

Kenya and South Sudan will form a joint commission to streamline plans for the construction of an oil pipeline between Juba and the port city of Lamu.

South Sudan intends to construct a pipeline through Kenya to export its crude oil while the government would build a refinery in Isiolo to process the crude for local use and export to countries like Ethiopia.

“We do not have the money to build the pipeline. South Sudan has said it will build it but it will be jointly managed by the two countries,” said Energy PS Patrick Nyoike.

The PS said a similar arrangement would be adopted for the planned refinery, possibly on a 50:50 basis.

Last Tuesday, Kenya signed the oil pipeline and fibre optic deal allowing South Sudan build and own a pipeline through the Kenyan territory.

“We will form a joint venture on the twin projects . We have a counterproposal from Toyota Tsusho Corporation to build several multi products to Lamu and Nakuru,” he said.

Another line is planned to deliver products to the border town of Moyale to be tapped by Ethiopia. A pipeline would also be built to connect to the oil fields in Hoima in northern Uganda.

Mr Nyoike said it was possible to complete the project in a year given that the 2,000-kilometre line from South Sudan oil fields to Port Sudan was laid in 18 months.

The refinery, pipeline and fibre optic cable are part of the Sh16 trillion Lamu Port and Southern Sudan-Ethiopia Transport Corridor project.

The project includes resort cities along the corridor and airports linked via a modern railway line.

The pipeline offers South Sudan an alternative route to transport oil, which accounts for 98 per cent of its revenues while opening up northern Kenya for development.

Toyota Tsusho Corporation is planning to build a 1,400-kilometre oil pipeline under Build Operate and Transfer before handing over control of the facility to the two governments after 20 years.

The pipeline would carry a projected 450,000 barrels of oil a day from Juba in southern Sudan to Lamu on the Indian Ocean.

The estimated cost of the pipeline is $1.5 billion dollars (Sh135 billion).

“The pipeline is a gateway to move Sudanese oil to the market including Kenya. Both the crude oil line and the refinery are urgent. Our plan is to deliver both at the same time,” said Mr Sylvester Kasuku, Infrastructure specialist at Kenya’s Office of the Prime Minister.

He said Kenya would earn transit fees in line with international best practice adding that preliminary works on other aspects of Lappset such as roads and port building have started.

Landlocked South Sudan exports roughly 350,000 barrels per day but has started shutting down production after talks collapsed with Sudan over transit fees and revenue sharing.

Sudan says South Sudan has not paid for use of northern export facilities since its independence and is demanding $1 billion in fees and $36 per barrel for the crude to be exported through Port Sudan.

In the event of exports through Port Sudan being blocked, South Sudan has said the country can survive on borrowing (using its crude as collateral) until a new export avenue is created.

Link (http://www.businessdailyafrica.com/Kenya+South+Sudan+to+form+team+for+oil+pipeline+project++/-/539546/1317026/-/81dh9nz/-/)

Kenya, South Sudan to form team for oil pipeline project

By ZEDDY SAMBU

Posted Monday, January 30 2012 at 21:04


The pipeline would carry a projected 450,000 barrels of oil a day from Juba in southern Sudan to Lamu on the Indian Ocean.

The estimated cost of the pipeline is $1.5 billion dollars (Sh135 billion).

Link (http://www.businessdailyafrica.com/Kenya+South+Sudan+to+form+team+for+oil+pipeline+project++/-/539546/1317026/-/81dh9nz/-/)


A $1.5 billion pipeline to Juba? how is the oil going to make it to the pipeline in Juba in the first place. A pipeline to Juba is less than half the required length for the pipeline. May be there is an ingenious plan to truck the oil from the wells to juba.
But the probable reality is the reason why Toyota isn't quoting a price for the full length of the pipeline project is for fear of exposing how uneconomic the project is.

A $1.5 billion pipeline to Juba? how is the oil going to make it to the pipeline in Juba in the first place. A pipeline to Juba is less than half the required length for the pipeline. May be there is an ingenious plan to truck the oil from the wells to juba.
But the probable reality is the reason why Toyota isn't quoting a price for the full length of the pipeline project is for fear of exposing how uneconomic the project is.

Thanks that you're aroused by the subject matter but, I'm pretty sure that all the parties [South Sudan, Kenya, Toyota and other stakeholders] involve know best what their interests are....and what can negatively or otherwise affect those interests.

Oil companies were helping Sudan steal oil. :ohno:

An extra 40,000 oil barrels found as oil production shuts down, says minister
The government of South Sudan said on Saturday that an increase of oil production by 40,000 barrels per day was noticed as the shutdown process of the oil fields in the country continued.

Addressing the press at the Fuluj Airport in Upper Nile State, the minister of petroleum and mining, Stephen

Dhieu Dau, said that after the completion of the shutdown process, his Ministry will do a comprehensive investigation to know how the increase occurred.

Dau added that the shutdown process of the oil wells is progressing as planned, adding that 50% of the oil fields in the country have already been shut down.

He said that the shutdown process is gradual and will be completed within the coming days.

Radio Miraya (http://www.radiomiraya.org/index.php?option=com_content&view=article&id=7723:an-extra-of-40000-oil-barrels-was-found-despite-oil-production-shutdown-says-minister&catid=85:85&Itemid=278)

South Sudan Produces More Oil than Revealed

JUBA – Undisclosed oil wealth have been revealed during the shutting down of South Sudan oil production and closure of pipeline whose crude for export runs through the Sudan pipeline to the port terminals.

According to the Minister of Petroleum and Mining Stephen Dhieu Dau, more oil wealth was discovered in the two producing oil States of Unity and Upper Nile during the shutting down of oil production in the Country.

He said it was discovered that oil production in Unity State was 600,000 barrels and above per day but the oil which was calculated for South Sudan in a day was much less than that quantity without giving more details.

“Some wealth of South Sudan were not accounted for during oil production,” the Minister said.

He told the Parliament that South Sudan was producing a lot of oil but Sudan did not account for it as it was assumed that there was less production without calculation.

The Minister said the halting of oil production has become a “blessing” to South Sudan that it has more resources underground while an alternative pipeline which will not pass through Sudan is constructed.

He said the construction of our own oil pipeline for South Sudan has become a top national project in the Country and assured that the Ministry of Petroleum would put measures in place to protect citizens on environmental effects which might result from oil production.

On Tuesday the National Legislature directed the Government to look for alternative pipelines that would be cheaper, to pass through one country that does not have any relations with the Sudan.

The Legislators have further said that before production of oil is resumed survey must be done to clearly know how much oil is pumped out per day.

The Citizen (http://www.thecitizen.info/featured/south-sudan-produces-more-oil-than-revealed-minister)

South Sudan, Ethiopia Sign Accord on Djibouti Oil Pipeline

Feb. 9 (Bloomberg) -- South Sudan and Ethiopia’s governments signed a memorandum of understanding to build an oil pipeline via Djibouti, South Sudanese Information Minister Barnaba Marial Benjamin said.

South Sudan also held talks with an unidentified Texas- based construction company about building a pipeline to the Kenyan coastal town of Lamu, Benjamin said on the government’s website in Juba, the capital. Kenyan and South Sudanese officials agreed on the pipeline last month.

The U.S. company “is ready to construct in six months time,” while Toyota Motor Corp. of Japan has begun a feasibility study on the Lamu project, he said.

South Sudan is evaluating alternative pipelines amid a dispute with neighboring Sudan over what fees it should pay to ship its oil through an existing facility that runs north to Port Sudan on the Red Sea. The disagreement led South Sudan to shut down its oil production last month.

South Sudan gained independence in July, taking control of three-quarters of Sudan’s output of 490,000 barrels of oil a day. Sudan is demanding compensation for the loss and also wants South Sudan to pay $6 a barrel to transit the oil via the country. South Sudan has offered to pay $1 a barrel.

Talks Resume

The two countries will resume talks tomorrow in Addis Ababa, the Ethiopian capital, with the African Union High-Level Implementation Panel on Sudan, on ways to resolve their disagreement, al-Obeid Murawih, spokesman for Sudan’s Foreign Ministry, said in an interview. The last round of talks ended in January without an agreement.

“The news about the pipelines will not affect the talks,” Murawih said by phone from Khartoum, Sudan’s capital. “The government of South Sudan is looking for alternatives for Sudan’s oil infrastructure because they’re not happy with our offer, and if other parties are offering them better deals, congratulations then.”

South Sudan’s crude is mainly pumped by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd. The oil companies won’t be present at tomorrow’s talks, Murawih said.

The planned pipeline via Djibouti forms part of a broader economic cooperation agreement with Ethiopia and South Sudan, said Djiboutian Finance Minister Ilyas Moussa Dawaleh.

‘Major Projects’

“One of the major projects we want to achieve is the transport of energy, especially the oil pipeline linking South Sudan to Djibouti via Ethiopia,” Dawaleh said in an interview yesterday in Djibouti City, the capital of the Horn of Africa nation.

Djibouti’s $982 million economy relies on services related to its strategic location on the Gulf of Aden, through which 20 percent of world trade passes on its way to the Mediterranean Sea, via Egypt’s Suez Canal.

Other areas of cooperation between the three countries will include extending the telecommunications networks in Ethiopia and Djibouti into South Sudan, while improving road and rail networks in the region, Dawaleh said.

source (http://www.businessweek.com/news/2012-02-09/south-sudan-ethiopia-sign-accord-on-djibouti-oil-pipeline.html)

:cheers:

double post

Trafigura in South Sudan oil row

The controversial oil trader confirms that a tanker it bought is the subject of a growing diplomatic incident

Trafigura has been accused of buying oil "looted" from South Sudan by neighbouring Sudan with which it has signed a peace treaty following decades of civil war that claimed more than 1.5m lives.

The controversial oil trader, which came to global political attention when it was revealed that a ship it had chartered dumped tonnes of toxic oil slops in Ivory Coast, confirmed that a tanker of oil it bought is subject to the growing diplomatic incident.

"The revenue that the government of Sudan has looted since December amounts to approximately $815m (£518m)," the President of South Sudan, Salva Kiir, said in reference to Sudan's allegedly selling on tankers of South Sudan's oil.

Omar al-Bashir, Sudan's president, warned the dispute could spark another war. "We will go to war if we are forced to go to war," he said on national television.

Trafigura, which is run from Switzerland by billionaire Claude Dauphin, confirmed that the oil it bought from Sudan is subject to a legal claim from South Sudan, the world's youngest country, created after it broke away from Sudan last year.

"The government of South Sudan was asked to provide further information to support its claim to ownership of the oil in which Trafigura has an interest. Some information has been provided which we are reviewing," Trafigura said in a statement. Trafigura said it had made "significant efforts" to confirm ownership of the oil it bought three weeks ago. "In relation to our interests in recent shipments, given the ongoing political discussions with respect to Sudanese oil ownership, significant efforts have been made to confirm legal title, and that confirmation has been provided."

South Sudan, which is landlocked and exports its oil via a pipeline through Sudan, stopped all oil production last week as the dispute escalated.

Last month Sudan admitted to holding tankers carrying South Sudan's oil, claiming that the south had failed to pay a multimillion-dollar transit fee for the use of the north's pipeline to Port Sudan on the Red Sea.

Trafigura bought the oil in an Indian-flagged tanker called Ratna Shradha three weeks ago. The ship, which is believed to be heading for port in Malaysia, was last seen on 5 February near Singapore, according to Reuters. South Sudan has warned that it may take legal action against any parties that buy the disputed cargo. Oil accounts for 98% of South Sudan's annual income.This is not the first time Trafigura has been involved in legally suspect oil deals. In 2001 the trader was allegedly involved in smuggling 500,000 barrels out of Saddam Hussein's Iraq. Trafigura insists it handled the deal via third parties in good faith.

Trafigura said its profits in its last financial year were boosted to more than $1.1bn following "prolonged volatility" created by the Arab spring uprisings and the Japanese tsunami, according to a letter Dauphin sent to bondholders seen by the Financial Times.

"Social upheaval in Libya and Egypt led to a restriction in North African crude supply. In Japan, the catastrophic earthquake and resulting tsunami had a profound effect on global industrial production, the most important determinant of commodities markets," the letter said.

Guardian (http://www.guardian.co.uk/world/2012/feb/08/trafigura-in-south-sudan-oil-row?newsfeed=true)

South Sudan in talks with Texas Company on oil pipeline

February 8, 2012 (DALLAS) – The government of South Sudan is in talks with a Texas-based company to explore options for building an oil pipeline which would serve as an alternative to the one passing through the territories of Sudan.

According to South Sudan information minister Barnaba Marial Benjamin, the unidentified company could start working the project in as soon as six months.

He offered no further details.

The official further said that South Sudan had signed a memorandum of understanding with Ethiopia to construct an oil pipeline passing through Djibouti.

A source close to the Juba government said that Ethiopia’s Prime Minister Meles Zenawi gave his approval to the idea. It is not clear if Djibouti did the same yet. Eritrea is also an option on the table even though its president Isaias Afewerki has yet to respond.

Last week, the former Sudan oil minister Lual Deng said that exporting the oil through Djibouti would be a shorter distance than using the established pipeline going all the way from South Sudan to the Red Sea.

South Sudan minister said that Toyota Company has started feasibility studies on the Lamu pipeline project which was signed recently with Kenya.

The landlocked nation is currently involved in an escalating dispute with Khartoum over the payment of transit fees for its oil.

Negotiations between Juba and Khartoum, hosted by the African Union High-level Implementation Panel (AUHIP) have thus far failed to find a resolution.

Khartoum demands South Sudan pays $32 per barrel of oil that passes through its territory. Juba says it will only pay around $1 a barrel.

As talks on the fees dragged on the Sudanese government said it ran out of patience and can no longer tolerate South Sudan exporting its oil for free. As such it started taking part of the oil pumped by South Sudan to make up for what it called unpaid fees.

In response, South Sudan said last month it was shutting down its output.

Angola Sends Envoy to South Sudan to Seek Oil Deal, Jornal Says

By Henrique Almeida - Feb 10, 2012 7:25 PM GMT+1000

Angola will send an envoy to South Sudan next week to negotiate an oil deal for state-owned oil company Sonangol EP, Novo Jornal reported, citing an unidentified company official.

President Jose Eduardo dos Santos has asked Lopo do Nascimento, a former Angolan prime minister, to travel to South Sudan’s capital of Juba to discuss Sonangol’s access to an oil block once owned by oil company Elf, the weekly newspaper said.

Sonangol has already won a tender to operate an oil field in South Sudan, Novo Jornal said, without providing details.

Link (http://www.bloomberg.com/news/2012-02-10/angola-sends-envoy-to-south-sudan-to-seek-oil-deal-jornal-says.html)

South Sudan Wants Oil Back

By NICHOLAS BARIYO

KAMPALA, Uganda-Newly independent South Sudan has issued a legal notice over the more than 6 million barrels of oil allegedly stolen by its northern neighbor, Sudan, since December last year as the spat over oil transit fees between the two former civil war foes continues to escalate, officials said Saturday.

South Sudan's justice ministry issued an international legal notice Friday and instructed its legal consultants to track down several vessels carrying the stolen oil across the globe, according to Barnaba Benjamin, South Sudan's information minister.

"This is stolen oil and our legal experts are pursuing whoever buys it," he said.

Until last month, landlocked South Sudan, which seceded from Sudan last summer, has been relying on pipelines and ports in Sudan to ship at least 350,000 barrels of oil a day to export markers, mainly in Asia and European markets.

However, it halted shipments after accusing its northern neighbor of stealing its transit oil. Sudan officials say they confiscated vessels carrying crude oil belonging to South Sudan as compensation for transit fees owed.

While Sudan has insisted that its southern neighbor pays as much as $32 per barrel of crude shipped though its facilities, South Sudan insists it will only pay around $1 a barrel, in accordance with international standards.

In an apparent escalation of tensions, a Sudanese government spokesman accused South Sudan of trying to topple the regime in Khartoum by halting oil shipments and sponsoring rebels in the restive South Kordofan and Blue Nile states, a charge denied by South Sudan.

"They [South Sudan] are continuing to disturb our peace, by sponsoring rebellion on our territory" said Sudan government spokesman Rabie Abdelaty.

Sudanese officials say that by halting oil shipments, South Sudan is trying to squeeze its neighbor into economic hardships to stir Arab string-like uprisings.

An oil tanker carrying oil, allegedly stolen from South Sudan, was expected to arrive in Japan on Saturday or Sunday, according shipbrokers and a shipping fixture seen by Dow Jones Newswires Friday.

Trafigura, owners of the shipment on Friday, reiterated a previous statement that it had bought oil from South Sudan in the past, but denied that it had knowingly bought stolen oil. South Sudan is also investigating some unnamed Chinese companies for their alleged role in helping Sudan steal its oil, according to Benjamin.

South Sudan has also accused Chinese companies of under declaring oil wells as well colluding with Sudan to block shipments through pipelines in December and January. The accusations are threatening to sour relations with China, the largest buyer of Sudanese oil. Several Chinese-owned enterprises are currently engaged in laborious talks with South Sudan over their oil production licenses.

Link (http://online.wsj.com/article/SB10001424052970204880404577230791552464870.html?mod=googlenews_wsj#articleTabs%3Darticle)

South Sudan expels head of Chinese-Malaysian oil firm
PALOUGE OIL FIELD, South Sudan, Feb 21 (Reuters) - South Sudan has expelled the head of Chinese-Malaysian oil consortium Petrodar, the main oil firm operating in the new African nation, top southern officials said on Tuesday, escalating a row between Juba and Chinese oil firms.

South Sudan has attacked Chinese oil firms and launched an investigation into whether they helped Khartoum seize southern oil being exported through Sudan until Juba shut down its oil output last month.

"The (oil) minister has just expelled the president of Petrodar," said Pagan Amum, South Sudan's top negotiator for talks with Sudan over oil payments.

"I think one of the reasons is lack of cooperation by the President of Petrodar (with the government) and we have dismissed him and expelled him and we are asking the partners to appoint a new president," he told Reuters during a visit to the oil field of Palouge.

Amum said relations with China were good but there were difficulties with some oil companies.

South Sudan has said Chinese oil firms have helped Sudan seize southern oil being exported through a Petrodar pipeline. Petrodar categorically rejected the accusations on Sunday and said it had followed only southern instructions.

South Sudan's attack on Chinese interests is puzzling Western diplomats because China is the biggest buyer of its oil.

Petrodar pumped 230,000 bpd from Upper Nile state, to which the Palouge field belongs, until the shutdown. It is a consortium of mainly Chinese state firms Sinpoec, Chinese National Petroleum Corp and Malaysia's Petronas. It runs oil fields in South Sudan and also an export pipeline through Sudan.

South Sudan took three-quarters of Sudan's oil production when it became independent in July but needs to export crude through a northern pipeline and a Red Sea port.

Both states have failed to agree on transit fees Juba needs to pay, prompting Khartoum last month to seize at least three southern oil shipments at the Red Sea terminal. South Sudan has responded by shutting down its entire output of 350,000 bpd. (Reporting by Hereward Holland; writing by Ulf Laessing; editing by Keiron Henderson)

Reuters (http://af.reuters.com/article/sudanNews/idAFL5E8DLA7420120221)

Disputed Oil Can Unload After Court Ruling, Trafigura Says


By Jared Ferrie - Feb 21, 2012 1:43 AM GMT+1000

A crude oil cargo that’s been stranded at sea because of a dispute between Sudan and South Sudan can unload in Japan after a court ruling in London, oil trader Trafigura Beheer BV said.

“We can confirm that the English court has ordered that the delivery can be made,” Trafigura, which bought the disputed cargo, said in a statement. “The court will hold all proceeds related to the cargo until ownership is legally established.”

South Sudan declared independence in July, taking control of fields producing of about 75 percent of Sudan’s 490,000 barrels a day of crude output. The division of oil resources has become a subject of contention between the two countries as South Sudan claims the Sudanese government in Khartoum is illegally selling the crude.

The oil tanker Ratna Shradha has been sitting off the coast of southern Japan since Feb. 14 and hasn’t docked, according to AISLive data compiled by Bloomberg. The ship loaded about 600,000 barrels of Nile Blend in Sudan on Jan. 19.

The tanker’s owner asked the court to rule on the matter because ownership of the cargo is disputed, said Pagan Amum, South Sudan’s chief negotiator in talks with Sudan.

“We will leave no stone unturned to recover the value of oil stolen by the government of Sudan,” Amum said. “We are encouraged by the steps taken by owners of the ship taken in the English court.”

An employee of Chambal Fertiliser and Chemicals Ltd., the Indian company that owns the ship, who answered the phone today, said nobody was available to comment. JX Nippon Oil (5001) and Energy, scheduled to take delivery of the oil, also declined to comment.
Ordered Shutdown

South Sudan ordered a shutdown of crude production after accusing Sudan of diverting fuel to its refinery, forcing companies to load oil onto ships it controlled, and blockading other shipments. Sudan said it confiscated crude to cover unpaid fees it’s owed for allowing the landlocked country to transport oil via a pipeline to Port Sudan on the Red Sea.

Sudan’s foreign ministry spokesman, al-Obeid Murawih, dismissed the dispute over Trafigura’s purchase.

“Whether we sold the oil or we did not, consumed it or not, the buyers are willing to buy or rejecting -- all these don’t help solving the core problem, which is reaching an oil deal between two countries,” he said by phone yesterday from Khartoum.
Dar Blend

Sudan put 1.9 million barrels of Dar Blend onto three tankers, comprised of 650,000 barrels on the Sea Sky, 750,000 barrels on the Al Nouf and 600,000 barrels on the ETC Isis, according to letters from oil companies that were provided by Amum. Sudan also loaded 600,000 barrels of Nile Blend onto the Ratna Sharada, the documents showed.

The Sea Sky and Al Nouf remain in the Fujairah area, on the coast of Sudan, according to AISLive data. The ETC Isis is located off Singapore.

The U.K. court decision for the sale to take place with the funds kept in escrow is “significant,” said Marc Mercer, an Africa associate with the Eurasia Group in London.

“The Trafigura experience makes the north’s sale of southern oil even more difficult to other such companies,” he said today in an e-mailed response to questions. “Litigation in court as well as the possibility of further proceedings should the oil be determined as stolen will be costly for all sides -- financially and reputation wise.”

Sudan and South Sudan are scheduled to meet in the coming weeks in the Ethiopian capital, Addis Ababa, for the next round of negotiations on issues outstanding since the south separated. These include determining the status of the region of Abyei and disputed sections of the border, as well as agreeing on an oil revenue sharing arrangement.

Amum told reporters Feb. 15 that South Sudan will not begin pumping oil again until a comprehensive agreement is reached, which includes Sudan paying for southern oil it has confiscated.

Link (http://www.bloomberg.com/news/2012-02-20/disputed-sudan-oil-can-unload-after-court-ruling-trafigura-says.html)

South Sudan in talks with Vitol to build small

By Hereward Holland and Emma Farge | Reuters – Wed, Feb 22, 2012

PALOUGE OIL FIELD, South Sudan/LONDON (Reuters) - South Sudan is in talks with top oil trader Vitol to build a small refinery which would start producing in 2013, as it seeks to end dependency on Sudan, its oil minister said on Tuesday.

South Sudan took three-quarters of Sudan's oil production when it became independent in July but has no refineries and needs to import petrol from Sudan or East African neighbours.

The landlocked country is in a dispute with Sudan over oil payments, as it needs to export its crude through northern export facilities. It has shut down its entire output of 350,000 barrels a day after Sudan started seizing southern oil for what it calls unpaid transit fees.

"We are expecting the first product in 2013," Oil Minister Stephen Dhieu Dau told Reuters during a visit to Palouge oil field when asked about refinery talks with Vitol.

"They will use 10,000 barrels per day and the output will be 35-40 percent of the total so it will be 3,500 barrels per day initially and then we will develop it gradually," he said.

South Sudan planned two more small refineries, he said without giving details.

Vitol's Chief Executive Ian Taylor told Reuters talks have been held with Juba.

"The South Sudanese are interested themselves in creating some finished products which they don't have much of. They have talked to us and not just us," he said.

"They have got a problem with refining products on how to bring them in. What they've got is crude oil, sadly stuck in the ground," he said.

Link (http://news.yahoo.com/south-sudan-talks-vitol-build-small-060439619.html?fb_action_ids=10150822223640884%2C10100209408570422%2C10150822219770884%2C10150639985621122%2C10150639981971122&fb_action_types=news.reads&fb_source=other_multiline&code=AQAe1X296G0-EzcdBXaYvqhDU7V37lCswlzIehioBFHDUXRdnZ9NkuKaUYHB_zYdr0PSaBKOc8RhdmGWCLWRv8jACYu4TRWPCjDUfg1EY2TS_Hm5p365ikk2-JTpdZXAfmyMMFHiP91_ZGPO8MBWfObFURwILtqIFwRTqNXybt5lnZIV8LlpK2cwuQsPcqozkKk#_=_)

Oil Companies Given Deadline To Relocate From Khartoum

By Juma John Stephen

JUBA, 20th March 2012

20th March 2012 is the deadline for oil companies to relocate their headquarters from Khartoum to South Sudan according to the Deputy Minister of Petroleum, Ms. Elizabeth James Bol based on a ministerial order circulated in February 2012.

http://www.gurtong.net/Portals/0/GlobalResources/EN/images/Editorial/HIGLIG%20OIL%20COMPANY%20PS.jpg
A view of the Heglig oil field in Unity State [File photo]

“We gave them the 20th March 2012 deadline; they should relocate their headquarters to Juba. They respected that ministerial order and by 16th March they had a comprehensive report on how they plan to comply and the challenges they are facing,” Elizabeth said.

She said that the Ministry is ready to mediate between the companies and the Khartoum government in case of any obstacle in their relocation plan.

“The relocation is in terms of data not the buildings. They should move the data in software and the related hardware. The data is the property of the Government of South Sudan,” she explained

More Here (http://www.gurtong.net/ECM/Editorial/tabid/124/ID/6657/Default.aspx)

IMATONGAS Reduces Fuel Prices

20 March 2012

IMATONGAS, a locally owned South Sudanese fuel products company with several fuel stations in the country, has slashed its pump prices for diesel and petrol by 8% effective Monday 19/3/12.

Diesel and Petrol will now retail for 5.5 South Sudanese Pounds (SSP) per liter down from 6 SSP. Both products used to retail at almost 2 US$. This price reduction will apply all over the company’s outlets in Juba, Bor and Torit.

The CEO and founder of IMATONGAS, Warille Benjamin Warille, said this reduction will help the economy of the country by reducing local transport costs and commodity prices, and also strengthen the company’s position in the market.

“We believe this reduction will contribute positively to the government’s efforts to reduce inflation in the new country. Inflation has reduced to 42.2% last month compared to 47.83% in January after the government streamlined taxation and removed illegal roadblocks and taxes.” Eng. Warille Benjamin said.

More Here (http://www.gurtong.net/ECM/Editorial/tabid/124/ctl/ArticleView/mid/519/articleId/6659/IMATONGAS-Reduces-Fuel-Prices.aspx)

Oil Companies Given Deadline To Relocate From Khartoum
JUBA, 20th March 2012

20th March 2012 is the deadline for oil companies to relocate their headquarters from Khartoum to South Sudan according to the Deputy Minister of Petroleum, Ms. Elizabeth James Bol based on a ministerial order circulated in February 2012.

http://www.gurtong.net/Portals/0/GlobalResources/EN/images/Editorial/HIGLIG%20OIL%20COMPANY%20PS.jpg

A view of the Heglig oil field in Unity State [File photo]

“We gave them the 20th March 2012 deadline; they should relocate their headquarters to Juba. They respected that ministerial order and by 16th March they had a comprehensive report on how they plan to comply and the challenges they are facing,” Elizabeth said.

She said that the Ministry is ready to mediate between the companies and the Khartoum government in case of any obstacle in their relocation plan.

“The relocation is in terms of data not the buildings. They should move the data in software and the related hardware. The data is the property of the Government of South Sudan,” she explained

For your info Heglig belongs to Sudan and is located in Southern Kordufan State.

For your info Heglig belongs to Sudan and is located in Southern Kordufan State.

For your info, in 1999 when oil was discovered in Panthou town of Ruweng county, Unity state, your government illegally annexed it to the north and renamed Panthou to Heglig(to create confusion that you display).
According the the 1956 border it is in South Sudan.

For your info, in 1999 when oil was discovered in Panthou town of Ruweng county, Unity state, your government illegally annexed it to the north and renamed Panthou to Heglig(to create confusion that you display).
According the the 1956 border it is in South Sudan.

Its such unfounded assertions that make it impossible to negotiate with the South.

Its such unfounded assertions that make it impossible to negotiate with the South.

Yes, Kitayabi blame all the failures of Addis Ababa negotiations on the South.

India, South Sudan in oil infra talks

By: Utpal Bhaskar

Tue, Mar 27 2012 (New Delhi) - Reinforcing India’s efforts to secure energy resources overseas, state-owned Oil and Natural Gas Corp. Ltd (ONGC) is in talks with South Sudan to help it build oil pipelines, crude oil stores and refineries in the newly formed African nation.

The proposed investment by ONGC, which may run into billions of dollars, assumes significance as the newly formed African nation stopped and capped crude oil production from all its 900 wells in January.

“We are in talks with South Sudan for developing their hydrocarbon infrastructure. This involves the entire value chain and even refining facilities,” a senior ONGC executive said, requesting anonymity.

More Here (http://www.livemint.com/2012/03/27000444/India-South-Sudan-in-oil-infr.html)

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New managing director of South Sudan's Nile Petroleum Corporation on the company's potential


By Mading Ngor | Thursday, 22 March 2012

(Juba, NSV, South Sudan) - Paul Adong Deng, the new managing director for South Sudan's premier oil company, Nile Petroleum, recently outlined challenges and opportunities awaiting the company.

Mr. Paul said South Sudan's bold decision to shut down oil pipelines may serve as a boon for the company, as it would allow it to train and recruit personelle to propel the company forward.

Click here for the interview (http://www.newsudanvision.com/index.php?option=com_content&view=article&id=2557:new-managing-director-of-south-sudans-nile-petroleum-corporation-on-the-companys-potential&catid=1:sudan-news-stories&Itemid=6)

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Feasibility is done, hope they quickly go to next stage.....

South Sudan’s oil pipeline construction will commence soon

June 14, 2012 (JUBA) – South Sudan may soon see commencement of implementation of an alternative vital joint oil pipeline project with Kenya that would transport the new nation’s crude oil to the international market and revive its staggering economy.

South Sudan shut down its oil production last January accusing its northern neighbor, Sudan, of stealing its oil which passed through Sudan’s pipelines to its Red Sea Port.

Khartoum justified the action, arguing that the new nation which broke away from it in July 2011 had not been paying transit fee.

The two sides have not reached an agreement on how much the transit fee should be as Khartoum asked for $36 a barrel while Juba offered over half a dollar per barrel, arguing that this was in accordance with the international practice.

South Sudan has exerted efforts to build an alternative oil pipeline through East Africa to the Indian Ocean and had recently signed a Memorandum of Understanding (MoU) with Kenya to build the pipeline.

A leading Japanese Toyota Tsusho Corporation has reported completion of feasibility study of the pipeline project and ready to sign contract with the government in order to commence the construction.

The Project General Manager of the company, Yoichiro Iwasaki, on Tuesday led a delegation to Juba and met with the South Sudan Vice President, Riek Machar, during which the company reported on the success of the feasibility study and readiness to enter into contract with the government.

The Vice President’s Press Secretary, James Gatdet Dak, told the Sudan Tribune that the company was ready to shoulder the financing of the project and will work out with the ministry of Petroleum and Mining in the contract a mechanism for repayment by the government.

Juba also plans to build another alternative pipeline through Ethiopia to the port in Djibouti and a separate MoU was also signed with the two concerned governments.

Related projects are also underway to build a number of refineries in South Sudan in order to provide fuel domestically and export its surplus products to the neighboring countries.

International oil companies assure of discovery of more oil reserves in South Sudan and predict that the oil production may quickly reach over 500,000 barrels a day from the current 350,000 in the next few years.

The shutdown of the oil production has affected the economy of South Sudan as it constituted 98% of the total annual revenues and was the only export item that used to bring in hard currency to the nation.

Khartoum’s economy has also suffered from the oil shutdown and shock of losing 50% share of South Sudan’s oil revenues after independence.

ST (http://www.sudantribune.com/South-Sudan-s-oil-pipeline,42917)

^^ It's surely great news.....If Toyota is going to help in financing it, as reported. :cheers:

:cheers: This is really good news and I'm crossing my fingers that Toyota goes through with it....But why are we planning two pipelines (Djibouti & lamu)? isn't one enough or has the current crisis with N. Sudan scared us so much that we can't trust any one country enough? I don't think we can afford two, that money could be spent better. :2cents:

Great post Kulang :)

With all due respect to my Southern Brothers, you really put too much faith into your government and its media. I do wish you well and if a pipeline to Kenya is what you want, that is your business. But try and recall the statements made by the government especially Dr. Machar in the beginning of the conflict that a pipeline would be built in 6-8 months. Its been 6 months and nothing. Several Independent organisations have already spoke about the high cost and difficultly building the pipeline due to many factors including geography, insecurity and the cost of running it. As you know it is uphill from South Sudan to Kenya and Djibouti. It is downstream to Sudan and port Sudan. So its not impossible, but ridiculous. Many have termed it the ‘pipeline dream’!!:nuts::nuts:

Second point I would like to make on you video clip, again with all due respect to South Sudan television and its viewers integrity. But that white man shown with Dr. Machar does not look like Japanese Mr. Youchiro Kawasaki.:nuts::nuts:

Like I said, all the best, no hard feelings and keep dreaming.:ohno:

ANALYSIS - S.Sudan-Kenya pipeline unlikely to see light of day
Thu Oct 6, 2011 12:43pm GMT

By Hereward Holland

JUBA, Oct 6 (Reuters) - A proposal by South Sudan to build an oil pipeline to Kenya and end dependence on North Sudan to export its crude has little prospect of becoming viable in the foreseeable future, because it requires fresh oil finds and an end to widespread violence.

Landlocked South Sudan took two-thirds of Sudan's 500,000 barrels a day of oil production when it became independent in July, but it is now locked in a row with Khartoum over the use of the northern pipeline to the Red Sea.

The South, which produces around 300,000 bpd but has no refinery or pipeline, has accused its former civil war foe of waging an economic war by demanding a fee of $32 per barrel to use the northern pipeline.

To end its dependence, South Sudan has held talks with Toyota Kenya over a pipeline to Lamu, where Kenya wants to build a port and refinery. Southern officials have also talked to other firms about connecting to an existing Kenyan pipeline from Eldoret to the port of Mombasa.

But analysts and diplomats say a Kenya pipeline would not be viable based on current reserve estimates, because output would be rapidly declining by the time it is completed.

A solution is more likely to come if China exerts pressure on both sides to reach agreement, removing the need for a new pipeline.

Oil industry sources say Khartoum overpumped some fields in recent years to get maximum revenue before the South broke away.

Southern output will decline to 200,000 bpd by 2016 and to 160,000 by 2018 before falling even further, according to estimates by the European Coalition on Oil in Sudan, comprising research groups, non-governmental organisations and activists.

"The pipeline is not viable currently because of the lack of certainty over the South Sudan's reserve base. Perhaps it would be viable if one day significant oil discoveries are made in South Sudan's underexplored blocks," said independent analyst Adrian J. Browne.

South Sudan said the Lamu pipeline would cost around $1.5 billion, but analysts say construction would be a challenge because it must cross the Sudd swamp, one of the world's largest wetlands, and mountains to reach the Indian Ocean.

"If, as many analysts have suggested, oil production is set to peak in the next year, the construction of an additional pipeline doesn't make fiscal sense for a country facing so many development needs," said Dana Wilkins from Global Witness, which has done extensive research on South Sudan's oil economy.

SECURITY, NEW DISCOVERIES?

A pipeline would also require a large security force, because it would cross regions in South Sudan prone to tribal and rebel violence and the bandit-ridden terrain of northern Kenya.

South Sudan, a poor country struggling to set up efficient state institutions, has been unable to contain violence in its main oil state of Unity and other regions, which has led to 3,000 deaths this year.

"From an investor's perspective, given the political climate and the threat of possible insurgent attacks on a pipeline, which is an easy target, there is going to be a very serious insurance premium to protect the pipeline," said Harry Verhoeven, a PhD candidate focussing on Sudan's economy at Oxford University.

Analysts say only significant new discoveries in the underexplored Block B area in Jonglei state -- where France's Total holds a license -- would build a case for a pipeline.

"Perhaps it would be viable if one day significant oil discoveries are made ... in Block B, and if these could be tied in with future finds in Kenya's northern Lake Turkana blocks," said analyst Browne.

"However, in the former Total has been unable to recommence exploration due to insecurity, and in the latter Tullow Oil is only just about to begin drilling," he said.

The government also hopes for big oil discoveries in the Central and Eastern Equatoria states, but based on the little mapping that has been done in the remote area, there is much uncertainty, said Wilkins from Global Witness.

"All bets are on Total," said Kathelijne Schenkel from the European Coalition on Oil in Sudan. "Only with substantial new finds will (a new pipeline) be worthwhile."

Analysts say repeated statements by southern officials about a new pipeline may be a bargaining tactic as Juba wrangles with Khartoum over the fee to use the northern pipeline to Port Sudan on the Red Sea.

The African Union has been trying to reach a deal, but talks stalled after Khartoum demanded $32 a barrel, which officials in Juba considered launching economic war. The fee is about a third of the South's export prices, around $90 in August.

Southern officials also hope for road projects to Kenya to reduce its dependency on the North for passage of its imports, which come mostly via the Nile.

A closure of the joint border by the north for several months has led to a scarcity of food and fuel, driving up inflation to 57 percent in August.

Diplomats say China, the main buyer of Sudanese oil and trading partner with both sides, could help broker an agreement.

China sent its foreign minister in August to north and south to expand ties as it tries to end tensions and remove the need for a Kenya pipeline after having funded the Red Sea pipeline.

"China is the one who could settle the dispute between north and south. They built much of the Sudanese oil industry to secure oil supplies," a diplomat said.

"Most of the loans granted by China have not been paid back, so they are in a very strong position," she said. (additional reporting by Ulf Laessing in Khartoum, editing by Jane Baird

With all due respect to my Southern Brothers(Brother?:lol:), you really put too much faith into your government and its media. I do wish you well and if a pipeline to Kenya is what you want, that is your business. But try and recall the statements made by the government especially Dr. Machar in the beginning of the conflict that a pipeline would be built in 6-8 months. Its been 6 months and nothing. Several Independent organisations have already spoke about the high cost and difficultly building the pipeline due to many factors including geography, insecurity and the cost of running it. As you know it is uphill from South Sudan to Kenya and Djibouti. It is downstream to Sudan and port Sudan. So its not impossible, but ridiculous. Many have termed it the ‘pipeline dream’!!:nuts::nuts:

Second point I would like to make on you video clip, again with all due respect to South Sudan television and its viewers integrity. But that white man shown with Dr. Machar does not look like Japanese Mr. Youchiro Kawasaki.:nuts::nuts:

Like I said, all the best, no hard feelings and keep dreaming.:ohno:

:cheers: Oh, Another hater. Who's next? Stand in line. :lol:

:cheers: This is really good news and I'm crossing my fingers that Toyota goes through with it....But why are we planning two pipelines (Djibouti & lamu)? isn't one enough or has the current crisis with N. Sudan scared us so much that we can't trust any one country enough? I don't think we can afford two, that money could be spent better. :2cents:

Great post Kulang :)

I agree, GoSS should focus on the Kenyan pipeline only.

^^im not :) actually i have a SS friends in Khartoum

^^im not :) actually i have a SS friends in Khartoum

Lol I know your're not a hater, but its for the haters who lurk in southern threads.

I just wanted to tell that not all the Sidanes are hater we lived together side by side for ages and those who says these might not hater I don't thinks Samaniii is a hater I think his just upset from what happened the few months ago heglig thing and stuff but it's over now! Wishing you all the best from a peacful Sudanese:)

Im not hating ... i've given you professional opinion. Not mine.

Im simply stating facts ... reality check.

if you had some better argument than 'hater', i would love to have debated you in civilized manner. But clearly you dont have anything to say.

Ps lady-gaga, im not that upset about heglig. Im more upset about many (not all, like you said many are dear friends) South Sudanese who do hate, are racist and have a huge chip on their shoulder. I dont think many would call you brother.

Like i said .. good luck.:ohno:

Im not hating ... i've given you professional opinion. Not mine.

Im simply stating facts ... reality check.

if you had some better argument than 'hater', i would love to have debated you in civilized manner. But clearly you dont have anything to say.

Ps lady-gaga, im not that upset about heglig. Im more upset about many (not all, like you said many are dear friends) South Sudanese who do hate, are racist and have a huge chip on their shoulder. I dont think many would call you brother.

Like i said .. good luck.:ohno:

Some Sudanese and South Sudanese are racists and that's a fact i know what you are upset about ! but no need to low there self esteem by posting news like that! i mean :)

Im not hating ... i've given you professional opinion. Not mine.

Im simply stating facts ... reality check.

if you had some better argument than 'hater', i would love to have debated you in civilized manner. But clearly you dont have anything to say.

Ps lady-gaga, im not that upset about heglig. Im more upset about many (not all, like you said many are dear friends) South Sudanese who do hate, are racist and have a huge chip on their shoulder. I dont think many would call you brother.

Like i said .. good luck.:ohno:

I don't care to debate you over whether the pipeline will be built because you and many others pessimists try to pretend you're honestly are concerned about the decisions the South Sudanese government makes, when in reality you actually don't care. Let's be 100% honest here.
Most of you pessimists and/or supremacists, only come to post because you're upset that you can no longer benefit from southern oil(50-50 or 79-21, what ever the shady deal was). You may be in denial about that but you can't be mad at the truth.

:nuts:
Im more upset about many (not all, like you said many are dear friends) South Sudanese who do hate, are racist and have a huge chip on their shoulder. I dont think many would call you brother

Hmm, Projection.
Some may see you as a "brother", I really hope it's sincere though. :lol:


Note: I want to make it clear, this post is not directed to all North Sudanese.

Bh2010, Chiefayic2, and any other South Sudanese, did any of you believe the pipeline can be built within the time frame Samanii or government officials have stated?

I didn't, I believe it would take much longer.

You guys are so dramatic ! its just a damn stupid pipeline !

South Sudan's Oil Pipeline Construction Will Commence Soon
14 JUNE 2012

Juba — South Sudan may soon see commencement of implementation of an alternative vital joint oil pipeline project with Kenya that would transport the new nation's crude oil to the international market and revive its staggering economy.

South Sudan shut down its oil production last January accusing its northern neighbor, Sudan, of stealing its oil which passed through Sudan's pipelines to its Red Sea Port.

Khartoum justified the action, arguing that the new nation which broke away from it in July 2011 had not been paying transit fee.

The two sides have not reached an agreement on how much the transit fee should be as Khartoum asked for $36 a barrel while Juba offered over half a dollar per barrel, arguing that this was in accordance with the international practice.

South Sudan has exerted efforts to build an alternative oil pipeline through East Africa to the Indian Ocean and had recently signed a Memorandum of Understanding (MoU) with Kenya to build the pipeline.

A leading Japanese Toyota Tsusho Corporation has reported completion of feasibility study of the pipeline project and ready to sign contract with the government in order to commence the construction.

The Project General Manager of the company, Yoichiro Iwasaki, on Tuesday led a delegation to Juba and met with the South Sudan Vice President, Riek Machar, during which the company reported on the success of the feasibility study and readiness to enter into contract with the government.

The Vice President's Press Secretary, James Gatdet Dak, told the Sudan Tribune that the company was ready to shoulder the financing of the project and will work out with the ministry of Petroleum and Mining in the contract a mechanism for repayment by the government.

Juba also plans to build another alternative pipeline through Ethiopia to the port in Djibouti and a separate MoU was also signed with the two concerned governments.

Related projects are also underway to build a number of refineries in South Sudan in order to provide fuel domestically and export its surplus products to the neighboring countries.

International oil companies assure of discovery of more oil reserves in South Sudan and predict that the oil production may quickly reach over 500,000 barrels a day from the current 350,000 in the next few years.

The shutdown of the oil production has affected the economy of South Sudan as it constituted 98% of the total annual revenues and was the only export item that used to bring in hard currency to the nation.

Khartoum's economy has also suffered from the oil shutdown and shock of losing 50% share of South Sudan's oil revenues after independence.

Ads by Google

source:http://allafrica.com/stories/201206140556.html

Bh2010, Chiefayic2, and any other South Sudanese, did any of you believe the pipeline can be built within the time frame Samanii or government officials have stated?

I didn't, I believe it would take much longer.

Nope...I think we all knew it would not happen in 6 months and Riek was probably just saying that to reiterate how serious we are about pursuing other pipelines. But clearly, there are many people out there looking for any dirt on South Sudan and we are making it a little too easy for them.

Spain based company looking to invest in oil & telecom

Friday, 22 June 2012 | Muna Tesfai

Representatives from the H.Oil Group met with Vice President Riek Machar in Juba on Friday and said the company is ready to enter into a contractual agreement with the government of South Sudan to develop the "Block E" oil well in Unity State.

The company's Vice President in charge of business development, Jose Luis Herrera, also expressed the company's interest in establishing a joint public-private partnership in the telecom sector.

Spain based company looking to invest in oil & telecom

Friday, 22 June 2012 | Muna Tesfai

Representatives from the H.Oil Group met with Vice President Riek Machar in Juba on Friday and said the company is ready to enter into a contractual agreement with the government of South Sudan to develop the "Block E" oil well in Unity State.

The company's Vice President in charge of business development, Jose Luis Herrera, also expressed the company's interest in establishing a joint public-private partnership in the telecom sector.

Cool, hopefully they find enough oil to take our daily output above half a million bpd. :cheers:

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And Mr. Pagan Amum also added...

We are definitely pursuing an alternative pipeline and we will expedite that because we want to end our dependence on Sudan and reduce the disadvantages of being a landlocked country

^^ Wow, that's actually impressive given their starting price of 36 dollars per barrel. For a moment there I thought they had finally caved in to American pressure considering they made this announcement soon after Kiir met with Clinton. But that's still a good deal on our part. Great negotiation team we got here! Thank god they didn't yield to those AU puppets' demands.

^^ Yep, negotiating team and the entire leadership have did well for sure. Obama & Co. blame high oil prices on South Sudan's shut down of the production.....Hence, their position. They just want to see the oil flowing and don't care whether or not, South Sudanese will be benefiting from it....Typical. Anyways, the deal is a welcome progress.....hope both parties can reach agreement on remaining issues soon. :cheers:

Summary of the deal

http://img191.imageshack.us/img191/115/91289880.png

Petrodar transports oil from block 3 & 7[Upper Nile State], which produce about 80% of South Sudan's oil.

http://img194.imageshack.us/img194/455/42815520.png

yes that is the deal but do not forget $ 3.3 billion budget from south sudan to be paid over 3 years . which means every Barrel is 25,08 $.
Thank you :)

yes that is the deal but do not forget $ 3.3 billion budget from south sudan to be paid over 3 years . which means every Barrel is 25,08 $.
Thank you :)

I left out the "musadad" part, for a reason. Yes, Juba has offered $3.028 billion transitional financial assistance (TFA) to Khartoum....to be paid in next 3.5 years or "early if it chooses". Giving Sudan financial package was never off the table, as it was estimated before the referendum that breakup will create a gap of about $10b in Khartoum's coffers. To offset those losses, South Sudan accepted to cover 1/3 while international community will pay the rest.

TFA however, is NOT part of the oil transportation deal.....And the agreement between the parties makes that clear. The package is meant to ensure "peace and security, respect for territorial integrity, and cooperation". Therefore, TFA payment will only start when all the outstanding issues are resolved.....And that's also the stand of the partnering countries which are expected to provide financial aid to Sudan.

Thank you :)

South Sudan: Aims to Ramp Up to Full Oil Output In 2-3 Months

By Jenny Gross

LONDON--South Sudan's chief oil negotiator, Pagan Amum, said South Sudan could resume production of 300,000 barrels a day within two to three months and that oil companies there were already preparing to restart crude production.

Mr. Amum told Dow Jones Newswires that he doesn't see any difficulty in negotiating the remaining details of the oil agreement with Sudan.

He also said South Sudan would continue to pursue plans to build alternative oil pipelines, which could take three and a half years.

"We will need that to reduce total dependence," Mr. Amum said.

The oil companies operating in Sudan and South Sudan include Petrodar, a Chinese-led pipeline consortium operating oil fields and an oil export pipeline. Another operating company is GNPOC. Shareholders include China National Petroleum Corp., Malaysia's Petronas and India's Oil and Natural Gas Corp. (500312.BY), according to the company's website.

The Wall Street Journal (http://online.wsj.com/article/BT-CO-20120807-713235.html)

South Sudan says oil pipeline via Kenya to cost $3 billion

By Kelly Gilblom| Fri Aug 10, 2012

NAIROBI (Reuters) - A pipeline allowing South Sudan to export its oil via the Kenyan port of Lamu, freeing the landlocked country from reliance on a route through Sudan, will cost $3 billion, Finance Minister Kosti Manibe said.

Manibe said that although South Sudan did not have the money to pay for the pipeline's entire cost, the newly independent country would invest in the project and had the necessary reserves of crude to offer guarantee to any financiers.

"The 2,000 km pipeline will cost approximately $3 billion dollars," he told a news conference in Nairobi on Friday.

"We don't need to have the money right now, we have the reserves," he said. "South Sudan will definitely have equity in the pipeline," he added.

Officials expect construction on the pipeline will begin by June 2013 and last two years. They said it will be able to transport between 700,000 barrels and 1 million barrels of Southern Sudanese crude per day.

South Sudan has 7 billion in proven reserves, the country's energy minister Stephen Dhieu Dau said.

South Sudan seceded from Sudan last year and the two countries have disagreed over how much the Juba government should pay to transport its oil output through Sudan.

They reached an interim deal last Friday, ending a row that led to the shutdown in January of southern oil production of 350,000 barrels per day.

Oil is essential to both economies and made up 98 percent of South Sudan's budget.

China was the biggest buyer of South Sudanese oil before the shutdown, and Chinese state firms are the biggest oil operators in the world's youngest country.

In January, South Sudan signed an agreement with neighboring Kenya, the region's largest economy, to build the pipeline to connect its oil fields with Lamu, which is under construction.

The pipeline could also transport crude from Kenya's Turkana area, where British explorer Tullow Oil found oil deposits in March should they be prove to be commercially viable, said Kiraitu Murungi, Kenya's energy minister.

"We believe from the indications that we've been given that we if we are lucky we might have as much oil as (South) Sudan. Any extra that we don't use in the country we are going to put in the same pipeline as the Sudanese oil and export it through the port of Lamu," said Murungi.

Murungi said the country is also planning to build a second refinery in the northeastern town of Isiolo to produce up to 100,000 barrels per day and refine crude from Turkana.

Kenya already has another refinery near the port of Mombasa, processing 1.6 million tonnes of crude a year.

(Writing by James Macharia; Editing by Stephen Powell)

Reuters (http://www.reuters.com/article/2012/08/10/us-kenya-sudan-south-oil-idUSBRE8790JU20120810)

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Minister optimistic about Petroleum Act

Thursday, 30 August 2012

The Minister of Petroleum and Mining, Stephen Dhieu says the South Sudan Petroleum Act of 2012 is a strong safeguard against corrupt practices in the country's oil sector.

Speaking at a two-day workshop on the implementation of the Petroleum Act, Minister Dhieu said the proposed law will lay guidelines for the operation of oil companies in the country.

He further said the companies will be responsible for health and environmental safety while his ministry will only exercise an oversight role.

Stephen Dieu explains how the petroleum act would make the oil sector more transparent:

"One way to do this is to allow information on petroleum activities to be available to all. Another way is to have proper competitive bidding processes for exploration and development agreement as well as other authorization in the oil sector. This transparent approach will at the same time work to reduce our vulnerability for bribery by making corrupt practices more difficult"

The workshop held in Juba, was attended by representatives from the South Sudan Ministries of Finance, Labor, Justice, Environment and Commerce as well as the Land and Anti-Corruption Commissions, civil society groups and representatives from oil companies.

It was organized by the United States Agency for International Development and the Norwegian Agency for Development Cooperation.

(Miraya Fm)

GOLDMAN: South Sudan Can Fill The Iranian Oil Export Shortfall

Matthew Boesler |

The shortfall in Iranian crude oil exports brought on by sanctions from the Western world against Iranian oil has "substantially exceeds" the Goldman Sachs energy team's expectations.

Commodities analysts David Greely And Stefan Wieler write in a note to clients that weakness in Iranian crude exports could continue throughout the second half of the year, restraining supply and thus keeping prices elevated.

However, Goldman sees South Sudan as an unlikely hero with the potential to make up for the shortfall in world oil markets. From the note:

A potential offset to the weaker-than-expected Iranian exports could be the return of crude oil supplies from South Sudan. A dispute between Sudan and South Sudan led to the shut-in of around 400 thousand b/d of supplies earlier this year. Last week, US Secretary of State Hillary Clinton met South Sudan’s President Salva Kiir in Juba, urging both South Sudan and Sudan to settle the dispute. Just hours after this meeting, South Sudan and Sudan announced that they reached an agreement over oil transit fees (South Sudan is landlocked and its oil if must travel in pipelines running through Sudan in order to reach the world market), which could be the first step to end the dispute that resulted in the shut-in of all oil production from South Sudan and about half of Sudan’s output since late January this year.

Greely and Wieler caution that there is still much more work to be done in Sudan, though, before they can step up in the world oil market:

Despite the recent progress towards ending the dispute, the timetable of the return of crude oil from South Sudan to the global market is still very much unclear at this point as it will depend on much more than just agreeing on a transit tariff. The parties will resume talks in August 26 according to a report from the Sudanese state news agency. Should the oil from the Sudan return to the market, it would help offset the greater-than- expected impact of the EU insurance sanctions on world oil supplies.

Read more: Here (http://www.businessinsider.com/goldman-south-sudan-can-plug-irans-oil-hole-2012-8#ixzz25JwSCRT0)

Exclusive: South Sudan to split Total oil block - officials

By Alexander Dziadosz

JUBA | Thu Sep 13, 2012 3:02pm EDT

(Reuters) - South Sudan will split a massive oil block largely held by Total into three parts, giving one to the French company and the others to two firms, officials said, in the biggest shake-up of the nation's concessions since it seceded from Sudan.

http://s1.reutersmedia.net/resources/r/?m=02&d=20120913&t=2&i=652575744&w=460&fh=&fw=&ll=&pl=&r=CBRE88C1D3R00

One oil industry source identified the other two operators as U.S. major Exxon Mobil and Kuwait's Kufpec, but the government did not confirm the names.

Total, Exxon Mobil and Kuwait Petroleum Corp, the state-owned parent firm of Kufpec, all declined to comment on the division of the mostly unexplored block, known as Block B.

Total had already challenged the decision to split the concession, granted before South Sudan declared independence from Sudan last year, Deputy Minister for Petroleum and Mining Elizabeth James Bol told Reuters.

But other government officials said South Sudan had the right to renegotiate deals agreed in the old, united Sudan and would go ahead and divide the concession, which comprises much of South Sudan's eastern Jonglei state - a remote region struggling with an insurgency and violent tribal clashes.

South Sudan, which depends heavily on oil but whose reserves are expected to decline sharply in coming years, had been pressing Total to start exploring Block B, which at about 120,000 square km was roughly the size of nearby Eritrea.

Total stopped operations in the block in 1985 after the resumption of Sudan's decades-long civil war, which ended with a 2005 peace deal that paved the way for South Sudan's secession last year.

Despite holding on to its claim to a leading stake in Block B, Total has not yet resumed exploration - a source of friction with some South Sudanese officials. In February Total said it would resume exploration soon.

It was unclear whether Total would have any legal grounds to challenge the decision.

A petroleum bill passed after South Sudan seceded said its new government was not bound by past agreements and had the right to review and split blocks.

In January, South Sudan said it had signed new agreements with the Chinese, Malaysian and Indian companies that dominate the country's oil sector to replace the existing deals with the united Sudan.

South Sudan's Information Minister Barnaba Marial Benjamin told Reuters one of the three blocks would go to Total.

"The other two will be put on tender ... It's going to happen soon," Benjamin added. "The ministry has a green light to go ahead with that."

Asked about Total's previous agreement, he said: "That was with the old Sudan ... This is a different country altogether. They recognize that."

An industry source speaking on condition of anonymity said the two remaining blocks would go to Exxon Mobil and Kufpec, Kuwait's state exploration firm.

The source said the final deal was not signed yet, but would be finished "as soon as possible". He gave no financial details.

BOOSTING EXPLORATION

The new nation wants to boost exploration because most old oilfields face declining reserves. Last year, the International Monetary Fund said South Sudan's production was likely to halve by 2020 without new discoveries or improved recovery.

Securing a deal with Exxon Mobil, the world's biggest oil group, would be a major boost for the world's newest country, still struggling to drag itself out of poverty.

U.S. groups were barred from doing business with the united Sudan by sanctions imposed in 1997 for the country's previous role hosting militants including Osama bin Laden.

In December, the U.S. Treasury Department's Office of Foreign Assets Control said the United States was easing sanctions on South Sudan to allow investment in the oil sector.

Oil contributed 98 percent of South Sudan's revenues until wells were turned off in January in a row with Sudan over export fees. Juba and Khartoum reached an interim oil deal last month but it still requires a border security deal before crude flows resume.

South Sudanese officials said the country was pumping about 350,000 barrels per day before the shutdown - roughly three-quarters of the formerly united country's total

Total signed an exploration and production-sharing agreement for the block with the Sudan in 1980. Kufpec Sudan Ltd, Marathon Petroleum Sudan Ltd and Sudan's state-owned Sudapet were also partners, Total's website says.

The French company said it stopped exploring in 1985 because of insecurity, but "we maintained our rights under the contract, through a moratorium that was renewed annually".

Total said it signed a renewed deal with Sudan in December 2004.

Reuters (http://www.reuters.com/article/2012/09/13/us-southsudan-total-idUSBRE88C13V20120913)

^^ Finally! Hope that's the case.....Because,Total has been too slow.

China's Africa Envoy Says South Sudan Oil May Flow By November

By Michael Martina |15 September 2012

South Sudan may resume pumping oil as soon as November, China's ambassador to Africa said, adding Beijing was optimistic leaders in Juba will soon reach pricing terms with Sudan on piping crude through the country from which it recently split.

http://www.gurtong.net/Portals/0/GlobalResources/EN/images/Editorial/Unity%20oil%20field%20worker%20PS.jpg
A Unity State oil company staff at one of the oil wells. [Gurtong| File]

More at reuters (http://af.reuters.com/article/southSudanNews/idAFL3E8KE3KH20120915?sp=true)

South Sudan Sees Increased Investment After Splitting Oil Block

By Jared Ferrie - Sep 28, 2012 2:50 PM GMT+1000

South Sudan expects to attract more foreign investment into the newly independent country through its break up of an oil concession the size of Rwanda, the government’s spokesman said.

Block B, which covers most of South Sudan’s eastern Jonglei state, was split into three blocks after Total SA (FP)’s ownership was invalidated because it was signed with Sudan before the south gained independence, Barnaba Marial Benjamin said in an interview on Sept. 26 in the capital, Juba. Total, based in Paris, previously held 32.5 percent of the block and will be allowed to choose one of the new concessions, he said.

“The block was too big for one company,” Benjamin said. “That block B is bigger than the whole of Rwanda, so it was divided up into different blocks so that you bring in more investment, to make it a fair deal. Competitiveness is important.”

Total signed an exploration and production-sharing agreement with the government of Sudan in 1980, before suspending exploration in 1985 because of “escalating insecurity” related to a civil war in the country, according to the company’s website. South Sudan seceded from Sudan in July 2011, taking control of about three-quarters of Sudan’s output of 490,000 barrels of oil a day.

Total spokesman Florent Segura didn’t respond to an e- mailed request for comment. A person who answered the phone at the company’s headquarters yesterday said she would print out the questions and pass them along to a spokesman to comment.

Monitoring Situation

Segura told Bloomberg on Feb. 2 that Total was “monitoring the situation on a permanent basis in the Block B area to ensure the safety of its personnel and contractors as soon as operations resume.” Oil in South Sudan is pumped mainly by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd. (ONGC)

Chinese, European and U.S. companies, including Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX), are among the bidders for exploration rights, Benjamin said.

More Here (http://www.bloomberg.com/news/2012-09-28/south-sudan-sees-increased-investment-after-splitting-oil-block.html)

South Sudan's Dar expects oil exports to restart in 18 weeks

Wednesday, 03 October 2012 | By Asad Naeem

JUBA: The biggest oil operator in South Sudan, Dar Petroleum Operating Company, said on Wednesday it would take 18 weeks for its crude oil to reach an export terminal once production resumed under deals signed last week with neighbour Sudan.

Landlocked South Sudan signed border and trade agreements at a summit with Sudan that will allow it to resume oil exports through Sudan's pipelines after an eight-month shutdown.

Chinese-Malaysian consortium Dar said it would initially aim for a production of 180,000 barrels per day. Oil would be pumped from its fields in Upper Nile state to Sudan's Red Sea export terminal, Port Sudan.

South Sudan split from Sudan last year under a 2005 peace deal that ended decades of civil war. It inherited three-quarters of the former nation's oil production of 500,000 barrels per day (bpd) - about 350,000 bpd - but export pipelines cross Sudanese territory.

A dispute between the nations over oil fees caused the South to shut down output in January and led to border clashes in April.

Dar's vice president Khalid Marol Riak told Reuters the company would begin flushing hot water through its oil wells, facilities and pipelines as soon as it was given the green light by the Ministry of Petroleum and Mining.

"The crude should arrive at the marine terminal on week 18, four and a half months, assuming that everything remains constant and that the oil facilities are not damaged," Riak said in an interview late on Tuesday.

"It could be three months if we do our best but for everything to be done safely might take longer."

Dar's 601 oil-producing wells in Upper Nile state, near the border with Sudan, pump waxy Dar Blend, a heavy sweet crude with high acidity, that has to be heated throughout the extraction and transportation process.

SANCTIONS LIFTED

Within five to eight weeks Dar will turn on high water cut wells, where the volume of water is more than crude, to help flush out and heat the system, Riak said.

After between nine to eleven weeks the Adar and Gumri oil fields will be switched on, followed by the Palouge field. "A complete shutdown of production has never happened in history, so it's a challenge to us now, but if we can restart without any damage to facilities, oil spills or gas leaks it will be a great credit to our oil industry," he said.

The United States has imposed economic sanctions on Sudan since 1997 but lifted the penalties for the South when it seceded last year.

"The embargo is over so we have a chance to bring in the best equipment and technology. We will have no excuse not comply with international standards," Riak said.

The oil shutdown caused the Juba government to introduce severe austerity measures, but Riak said the closure had given the country a chance to get better control of its resources and train staff.

Riak said the company would also be more transparent after the government issued a new Petroleum Act. The Ministry of Mining and Petroleum will ask independent parties to conduct audits, including on health and safety and oil production, he said.

"We are prepared to produce daily production figures, anything," Riak said.

South Sudan expelled Dar's former President Liu Yingcai in February, citing lack of co-operation with the South's investigation of oil firms suspected of helping Khartoum seize southern oil. The new president is Sun Xiang Sheng.

Link (http://www.brecorder.com/world/global-business-a-economy/83390-south-sudans-dar-expects-oil-exports-to-restart-in-18-weeks-.html)

Total Hopes To Strike South Sudan Exploration Deal Soon

By Geraldine Amiel | October 04, 2012

French oil major Total SA (TOT, FP.FR) is optimistic that it can reach an accord with the South Sudan government over a disputed concession and shortly resume operations in the newly-independent nation.

The two sides are locked in talks aimed at resolving the fate of a massive license area held by Total since the 1980s in what was then Sudan. However, U.S. sanctions and a civil war that only ended last year interrupted the French firm's activities in the country and South Sudan has since said that it wants to split Total's prospect into three parts.

In a statement, Total said discussions over the concession -- known as Block B -- were "progressing in a format satisfactory to both parties" and that it "hopes to be able to proceed soon with planned operations [on the area] as soon as the necessary approvals by relevant authorities are obtained,"

Following its secession, South Sudan has sought to revise the pre-existing contracts signed by Khartoum and foreign oil firms. Last month's surprise decision to divide Block B has been explained by some analysts as an attempt to speed up Total's long-stalled exploration program.

"Total remains strongly committed to significantly contributing to the Republic of South Sudan's development," the company added.

South Sudan is encouraging more exploration activities to bolster its oil reserves, which are under threat after years of limited exploration due to the insecurity. The country's 350,000 barrels-a-day oil output is expected to plummet sharply in coming years without fresh investment.

Despite the end of formal hostilities, border areas like Jonglei state, where the block is located, remain unstable. The landlocked country depends on oil exports -- piped through Sudan -- for almost all of its revenue but these were halted in January after a sudden upsurge in tensions.

The two countries finally agreed a pact last week that allows for the gradual resumption of shipments.

Link (http://www.foxbusiness.com/news/2012/10/04/total-hopes-to-strike-south-sudan-exploration-deal-soon/#ixzz28NjJRJz4)

South Sudan Resumes Oil Production

By MICHAEL ONYIEGO

JUBA, South Sudan October 18, 2012 (AP)South Sudan ordered oil companies to restart production Thursday and officials said oil export could resume in about 90 days, ending a nearly nine-month shutdown following a dispute with Sudan over borders and oil.

More:Here (http://abcnews.go.com/International/wireStory/south-sudan-resumes-oil-production-17508674#.UIBUra4ubQo)

Vitol finishes design of small South Sudan refinery

By Jenny Gross | 29.10.2012

With the refinery design complete, Mark Ware, director of corporate affairs, said Vitol is now working with the South Sudan government to review the next phases of implementation for the project.


LONDON -- Vitol S.A. said Monday the company has completed the basic design of a small refinery project in South Sudan.

Mark Ware, director of corporate affairs, said Vitol is now working with the government to review the next phases of implementation.

Sudan and South Sudan last month signed a number of deals that pave the way for the resumption of South Sudan's 350,000 bpd oil shipments through Sudan.
Link (http://www.hydrocarbonprocessing.com/Article/3110125/Latest-News/Vitol-finishes-design-of-small-South-Sudan-refinery.html)

Toyota Interested in Financing the Juba-Djibouti Pipeline

Tuesday, 30 October 2012

The Japanese Toyota Tsusho Corporation has expressed interest in the financing and construction of the pipeline extending from Juba to Port Djibouti through Ethiopia.

The Japanese company is interested in undertaking the project expected to be launched in the second quarter of the coming year according to sources in the Japanese Embassy here in Ethiopia.

Toyota is the second company, next to an anonymous US company to express an interest in financing the infrastructural project tentatively expected to cost 3 billion US dollar.
It is to be remembered that a Memorandum of Understanding for the construction of the project was signed between Southern Sudan, Djibouti and Ethiopia earlier this year.

The agreement establishes the construction a pipeline, a railway system and fiber optics cable line to stretch between Juba and Djibouti via Ethiopia.

The next stage of the pipeline project was approved by high level representatives from the three countries just last month.
It is expected that a detailed feasibility study will be completed in the coming few months and the construction will begin within six months. The initial study had estimated that the construction of the pipeline will be completed within 3 months for 3 billion US dollars.

source (http://www.2merkato.com/201210301733/toyota-interested-in-financing-the-juba-djibouti-pipeline)

Total expects to resume South Sudan exploration soon

Wed Oct 31, 2012 11:13am GMT

CAPE TOWN (Reuters) - French oil major Total said it was confident of reaching an agreement soon with South Sudanese over exploration in a disputed block and was ready to resume work there with a new partner, a senior official said on Wednesday.

Last month the government said it would split Total's 120,000 square km concession into three parts to speed up exploration in South Sudan, which seceded from Sudan over a year ago.

"We are really confident that we will have an agreement with South Sudan government and with the introduction also of a new partner," Jacques Marraud des Grottes, Africa President of Total exploration and production unit told journalists.

South Sudan, which depends on oil for about 98 percent of its revenues, is eager to start exploration in Block B due to rapidly declining reserves in other producing fields.

Total has held the block since 1980 but halted exploration five years later because of insecurity from Sudan's civil war, which lasted two decades until 2005.

"We expect to resume soon. We are very close to celebrating and we already have people over there... We are ready to start," Des Grottes said on the sidelines of an African oil conference.

He did not want to reveal details of who the new partners were, although industry sources told Reuters in September that the two operators were U.S. major Exxon Mobil and Kuwaits' Kufpec.

Referring to Uganda reclaiming an exploration block jointly Tullow Oil, CNOOC and Total SA earlier this month, Des Grottes said it was normal procedure.

"Licenses are of a certain duration and at the end of the licence you have no rights. We did the exploration on that block, the license is over. It is just the normal expiry of the license," he said.

The Ugandan Energy Ministry's Petroleum Exploration and Production department said the Kanywataba block had reverted back to the east African government after a six-month long exploration license expired.

Link (http://af.reuters.com/article/investingNews/idAFJOE89U01H20121031)

South Sudan Says It’s Ready to Restart Oil Production

By Jared Ferrie on November 06, 2012

South Sudan will begin pumping oil this month after nine months of a production shutdown sparked by a dispute over transportation fees with neighboring Sudan, government spokesman Barnaba Marial Benjamin said.

“The technicians, the ones who actually work on the oil wells and the pipeline, they gave an assessment to say oil can begin to flow in the next couple weeks,” Benjamin said by phone today from Juba, South Sudan’s capital.

More here (http://www.businessweek.com/news/2012-11-06/south-sudan-says-it-s-ready-to-restart-oil-production)

Blueprint for Prosperity(Explaining South Sudan Oil Sector) (http://www.globalwitness.org/sites/default/files/library/Blueprint%20for%20Prosperity_LR_1.pdf)

Draft Petroleum Revenue Management (http://www.globalwitness.org/sites/default/files/library/Republic%20of%20South%20Sudan,%20draft%20Petroleum%20Revenue%20Management%20Bill,%202012.pdf)

South Sudan signs oil deals with Israeli companies: Petroleum minister
South Sudan’s Petroleum and Mining Minister Dhieu Dau says the country has signed oil deals with several Israeli companies.


According to a statement issued by the ministry on January 18, the oil-rich East African state signed the deals with the companies to export oil to Israel.

No other details have been given regarding the agreements which were reached during Dau’s visit to Israel last week.

The announcement comes months after Israel signed a pact to cooperate on water infrastructure and technology development with South Sudan, the first economic cooperation agreement between Tel Aviv and Juba. Read more (http://www.presstv.ir/detail/2013/01/21/284812/south-sudan-inks-oil-deals-with-israel/)

South Sudan to get first ever oil refinery in July

JUBA (Feb 2, 2013) – South Sudan is set to get its first ever oil refinery in July, one of two facilities expected to be commissioned this year, the Ministry of Petroleum and Mining announced on Saturday.

This came during a briefing Petroleum Minister Stephen Dhieu Dau and senior executives from his ministry held for top officials of the ruling SPLM General Secretariat to enlighten them about the status of the country’s oil industry.

The briefing was in line with the SPLM’s obligations as a ruling party to follow up on the performance of its cadres in the executive and to ensure that they are executing party policies and delivering on promises made to the people.

“We have now two refineries in progress, but we will have more,” the Minister stated.

http://www.splmtoday.com/images/stories/inpictures/2013/02/sspetro.jpg
Petroleum Minister Stephen Dhieu Dau addressing top officials of the ruling SPLM General Secretariat in Juba [Photo: Lim Donato]

The first refinery will be built in Bentiu, Unity State, with the capacity of some 5,000 bpd, according to Daniel Chuang, the Ministry’s Director for Refineries, who is overseeing the project.

Chuang explained that work on the Bentiu Refinery has reached advance stages, adding he expected the facility to be “ready by July.”

Building the modules has been ongoing in Russia and as Chuang pointed out, shipping the modules to the site will commence soon.

The Bentiu Refinery, primarily funded by the Safinat Group, shall mostly process Light Nile Blend crude oil from fields in Unity State.

Chauang also declared that work on a second facility, the Thiangrial Refinery in Upper Nile was progressing according to plan and would be completed before the end of the year.

The site, he said, was cleared last July and surveys on the area have been completed.

This month, the most difficult part of the project, hauling all the material needed for construction to the site, shall get underway, and officials predict this to be finished within 30 days.

Building modules for the plant, which will largely refine the Dar Blend variety of crude oil, has also been ongoing in Huston Texas.

Chuang said the Thiangrial Refinery would initially have a capacity of 10,000 bpd that shall be gradually doubled to 10,000 bpd – more than enough to meet the entire daily fuel demands of the country.

Construction of the two refineries is widely expected to ease the burden on fuel imports from neighboring countries and end the intermittent supply in the market, something that has had a negative impact on the economy.

This is good news. A country producing oil shoudn't need to import refined fuel from other countries.

^^ Sure!

South Sudan Plans Sale of New Oil Concessions, Spokesman Says

By Jared Ferrie on February 14, 2013

South Sudan plans to break up large oil blocks and sell off smaller concessions for exploration, government spokesman Barnaba Marial Benjamin said.

The government will issue tenders for the concessions within the next few months after it has divided blocks that cover parts of Warrap, Lakes, Central Equatoria and Northern Bahr el Ghazel states, Benjamin said today in a telephone interview from the capital, Juba.

“It will be announced by the oil ministry and it will be in the international and national media,” he said. “It will be very transparent.”

The government lost 98 percent of its revenue when it decided to shut down oil production a year ago amid a dispute over how much the landlocked country should pay to export its oil through pipelines running across Sudan.

South Sudan seceded from Sudan in July 2011, taking control of about three-quarters of the formerly united country’s output of 490,000 barrels of oil a day. Oil in South Sudan is pumped mainly by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd.

South Sudan invited bids from oil companies in September to develop two concessions that had been part of Block B, which covered most of restive Jonglei state and in which Paris-based Total SA held a 32.5 percent stake. The government said it granted control of a third of the former block to Total.

Business Week (http://www.businessweek.com/news/2013-02-14/south-sudan-plans-sale-of-new-oil-concessions-spokesman-says)

South Sudan to export crude oil by road through Ethiopia

By MACHEL AMOS in Juba | Saturday, March 2 2013

http://www.africareview.com/image/view/-/1709304/highRes/471150/-/maxh/283/maxw/432/-/5o3410z/-/Tanker.jpg
Oil tanker:FILE | NATION MEDIA GROUP

South Sudan will commence constructing a road to Ethiopia that would transport the new nation’s crude oil to the international market through Djibouti port.

South Sudan has approved a plan to urgently construct a road to Ethiopia, an official has said.

Information and Broadcasting minister Barnaba Marial Benjamin, said the Cabinet resolved on Friday to urgently construct the road from the oil fields at Paloug in Upper Nile State to the Ethiopian border.

“The council has given the go ahead for the construction of Falluj-Pagak-Ethiopia road. This is to make it possible for the construction of this road to link the oil fields to Ethiopia so that we can transport our crude oil by land through Ethiopia to Djibouti," Dr Marial said.

"The two ministers (of Roads and Petroleum) have been given a go ahead in order to finish the process together in coordination with the Ethiopian government so that this road is quickly constructed," he said.

More here (http://www.africareview.com/News/South-Sudan-to-export-crude-oil-by-road/-/979180/1709302/-/128chq7/-/index.html)

South Sudan to Resume Oil Exports

Charlton Doki, Mugume Davis Rwakaringi | March 12, 2013

http://gdb.voanews.com/7F28CF16-5C62-40BB-9A82-03E09E951B37_w640_r1_s.jpg

An oil processing facility is seen at an oilfield in Unity State, South Sudan. (Reuters)

JUBA, SOUTH SUDAN — South Sudan is set to resume oil exports within weeks after an agreement was signed Tuesday to allow South Sudanese crude to flow through pipelines in the north after a break of more than a year.

"It is agreed that the two countries... will provide instructions to the oil companies within two weeks... for the start of the flow of the oil," said Pagan Amum, South Sudan's chief negotiator at the talks in Ethiopia.

"Of course, the oil companies will now start preparations and as soon as it is technically possible for the oil to flow, it will flow,” he said.

Read more here (http://www.voanews.com/content/south-sudan-resume-oil-exports/1620060.html)

South Sudan to Resume Oil Exports

Charlton Doki, Mugume Davis Rwakaringi | March 12, 2013

http://gdb.voanews.com/7F28CF16-5C62-40BB-9A82-03E09E951B37_w640_r1_s.jpg

An oil processing facility is seen at an oilfield in Unity State, South Sudan. (Reuters)

JUBA, SOUTH SUDAN — South Sudan is set to resume oil exports within weeks after an agreement was signed Tuesday to allow South Sudanese crude to flow through pipelines in the north after a break of more than a year.

"It is agreed that the two countries... will provide instructions to the oil companies within two weeks... for the start of the flow of the oil," said Pagan Amum, South Sudan's chief negotiator at the talks in Ethiopia.

"Of course, the oil companies will now start preparations and as soon as it is technically possible for the oil to flow, it will flow,” he said.

Read more here (http://www.voanews.com/content/south-sudan-resume-oil-exports/1620060.html)

Good news, I hope people of both countries will benefit from the oil money and it doesn't end up spend in the arm race or in the tummies of greedy government officials.

TFA however, is NOT part of the oil transportation deal.....And the agreement between the parties makes that clear. The package is meant to ensure "peace and security, respect for territorial integrity, and cooperation". Therefore, TFA payment will only start when all the outstanding issues are resolved.....And that's also the stand of the partnering countries which are expected to provide financial aid to Sudan.

Thank you :)

the TFA payment is part of the oil agreement. Its calculated at $14 per barrel exported and it is explicitly stated in the oil agreement that failure to pay the TFA due on exports is a breach of the agreement and can be pursued legally by Sudan.
To suggest that a country that has allowed its economy to more than half in size over the past year to prevent sudan from sharing oil revenues is giving $3 Billion to Sudan out of kindness is ridiculous. :lol:

the TFA payment is part of the oil agreement. Its calculated at $14 per barrel exported and it is explicitly stated in the oil agreement that failure to pay the TFA due on exports is a breach of the agreement and can be pursued legally by Sudan.
To suggest that a country that has allowed its economy to more than half in size over the past year to prevent sudan from sharing oil revenues is giving $3 Billion to Sudan out of kindness is ridiculous. :lol:

Who said that South Sudan is paying TFA to Sudan out of it "kindness"? TFA is a CPA demand that South Sudan and international community have to fulfill. TFA is meant to keep Sudan's economy afloat and more importantly ensure Khartoum keeps to its words. According to the agreement you are referring to, TFA will be paid separately (section 5.2) for 3.5 years or less. The agreement also clearly states that "Any material breach of the agreement by government of Sudan, will lead to suspension of TFA and the payment to resume only when the breach is rectified" (section 6.2.1).

Sudd Petroleum Plans Oil Production Within Three Weeks

17 March 2013

The President of Sudd Petroleum Operating Company, Emi Suhardi Mohd Fadzil has said that block 5A will resume oil production after three weeks following the order by the petroleum minister for the oil companies to resume production with immediate effect.

Read more here (http://http://www.gurtong.net/ECM/Editorial/tabid/124/ID/10152/Default.aspx)

Block B draws many lustful eyes

Africa Energy Intelligence | 19/03/2013

The huge block B that had previously been operated by Total is expected to finally be carved into three parts rather than four, as some had anticipated.

More here (http://www.africaintelligence.com/AEM/oil/2013/03/19/block-b-draws-many-lustful-eyes,107949953-ART)

CAIRO — South Sudan's first oil exports will reach Sudan in mid-April after resuming production, Sudan's state news agency SUNA said on Wednesday, citing a senior oil official.

After months of negotiations both African countries agreed earlier this month to resume cross-border oil-flows after tensions between them eased.

Landlocked South Sudan, which shut down its entire output in a row with Khartoum over oil fees last year, needs to export its oil through the Sudanese port of Port Sudan.

The first southern cargo would cross Sudan's border between April 15 and 20 and then go to Port Sudan, Awad Abdel-Fattah, secretary-general in Sudan's oil ministry, told SUNA.

South Sudan's oil minister said on March 14 oil firms in the South had been ordered to restart production, which he said would take two to three weeks.

South Sudan was producing about 350,000 barrels per day before it shut down its oil output. Both countries depended heavily on crude exports for state revenues and the foreign currency they use to import food and fuel.

South Sudan seceded from Sudan in 2011 under a 2005 peace deal which ended one of Africa's longest civil wars but both countries are still at loggerheads over ownership of disputed territories and other issues.

Trafigura and South Sudan agree oil export deal

Reuters in Geneva | 27 March 2013

Switzerland-based oil trader signs lucrative deal to export Dar Blend low-sulphur crude oil from republic

The oil trader Trafigura has signed an export agreement with South Sudan, which is preparing to resume output after a gap of more than a year.

The deal is a coup for Trafigura, a dealer in Sudanese oil long before the nation split. Until late last year the firm was embroiled in a legal dispute over a cargo of oil that South Sudan claimed was stolen by its northern neighbour.

The Switzerland-based firm, which corporate filings show gets nearly 30% of its oil turnover from Africa, is the world's third-largest trader in raw materials.

Trading houses have jostled for access to South Sudan's low sulphur oil, which is sought by Asian buyers. The firms are seeking to expand their presence in Africa and extend distribution networks in a region where demand is booming.

Glencore was the first to secure an agreement to market South Sudan's oil, but the deal was scrapped after opposition from some South Sudan officials.

More here (http://www.guardian.co.uk/world/2013/mar/27/trafigura-south-sudan-oil-export-deal)

South Sudan Resumes Oil Production

Reuters | April 06, 2013

JUBA — South Sudan has restarted oil production after agreeing with Sudan to resume cross-border oil flows last month, an executive at the state oil company said on Saturday. After months of negotiations both African countries agreed earlier this month to resume cross-border oil flows after tensions between them eased.

Landlocked South Sudan, which shut down its entire output of 350,000 barrels a day in a row with Khartoum over oil fees last year, needs to export its oil through Sudanese pipelines and the port of Port Sudan.

"Yes it has started," Paul Adong Bith Deng, managing director of state oil firm Nile Petroleum (Nilepet), told Reuters by phone from the Thar Jath oilfield in Unity state, South Sudan, when asked whether oil production had been resumed.

Link (http://www.voanews.com/content/south-sudan-resumes-oil-production/1636141.html)

^^:cheers::cheers::cheers:

^^:cheers::cheers::cheers:

:banana::banana:
http://tinyurl.com/cd7ec6n

First South Sudan oil reaches Sudan

AAP | April 14, 2013 10:46PM

SUDAN'S oil ministry says the first crude from South Sudan has reached its territory, bringing both impoverished countries closer to billions of dollars in revenue after a dispute over fees.

"The first batch of oil already arrived on Sudanese land yesterday," Sudan's undersecretary at the petroleum ministry, Awad Abdul Fatah said on Sunday.

"It's a small testing quantity."

Eight days ago South Sudan held a ceremony to restart oil production at the Thar Jath field in Unity state after a shutdown of more than a year.

The South halted crude production in early 2012, cutting off most of its revenue after accusing Khartoum of theft in a row over export fees.

China was the biggest buyer of the oil.

At talks in Addis Ababa last month, Sudan and South Sudan finally settled on detailed timetables to ease tensions, after months of intermittent border clashes, by resuming the oil flows and implementing eight other key pacts.

The deals had remained dormant after signing in September as Khartoum pushed for guarantees that South Sudan would no longer back rebels fighting in South Kordofan and Blue Nile states

Link (http://www.news.com.au/breaking-news/world/first-south-sudan-oil-reaches-sudan/story-e6frfkui-1226620325369)

First oil from South Sudan's Upper Nile to reach Sudan May 10
KHARTOUM | Sat May 4, 2013 1:01pm EDT

(Reuters) - South Sudan will ship its first oil from its largest fields in Upper Nile state to export facilities in Sudan on May 10, Sudan's oil ministry told state news agency SUNA on Saturday.

In March, the African neighbors agreed to resume cross-border oil flows.

The first oil from the Palouge field in South Sudan's Upper Nile state will be sent to Sudan on May 10, oil ministry undersecretary Awad Abdel-Fattah told SUNA after a phone call with the head of oil consortium Dar Petroleum which runs the fields.

Last month, South Sudan started resuming oil production in Unity state but damage caused by cross-border skirmishes a year ago means the output is only gradually rising. The fields produce Nile Blend, a light, sweet, waxy crude.

Industry experts say Dar Blend production will start at around 50,000 bpd, and quickly rise to at least 150,000 bpd, while Nile Blend is likely to remain at around 30,000-40,000 bpd for at least six months.

Both countries, which came close to returning to war a year ago, depend heavily on crude exports for state revenues and use the foreign currency to import food and fuel.

More here (http://www.reuters.com/article/2013/05/04/us-sudan-south-oil-idUSBRE94308P20130504)