January 17, 2016 (JUBA/KHARTOUM) – South Sudan’s Petroleum and Mining ministry says it may be forced to shut down its oil fields in Upper Nile state and turn off pipeline, should the Sudanese government a request to lower its oil transit fees.
A pipeline that transports crude oil from the south to Port Sudan (Reuters)
“We are left with no option at the moment rather than to shut it down because it’s not feasible. We cannot sell the oil at loss”, the ministry said in a memo sent to Sudan’s Ministry of Petroleum and Mining.
South Sudan, according to a negotiated agreement, pays Khartoum up to $25 per barrel for its crude oil transported through the Sudanese territory.
Juba’s letter requesting the Sudanese Petroleum and Mining Ministry to reconsider its transit fees comes in the wake of changes in global oil prices.
The price of crude oil is currently at $29 dollars per barrel in the international markets.
Presently, South Sudan is producing oil at 160,000 barrels per day, despite a decline in its oil production due to the violent conflict that engulfed the young nation, killing thousand and displacing nearly two million people.
SUDAN WILL STICK TO OIL FEES
Meanwhile, a Sudanese said Khartoum would not change terms of the agreement for the transportation of South Sudan’s oil across its country.
In a statement published in the Qatari newspaper al-Raya, Sudan’s Finance minister, Badr al-Din Mahmoud, said the transit fee for South Sudan’s oil is of two parts, citing the $ 9.5 as transit fee and $15 as a transitional financial arrangement, agreed after South Sudan seceded from Sudan.
“That makes a total of 24.5 U.S Dollars per barrel,” said Mahmoud, further stressing that South Sudan’s oil transit fee was bound by an agreement signed in September 2013 and that it was not amended or re-negotiated.
Following a recent visit to Khartoum, South Sudan’s foreign affairs minister, Barnaba Marial Benjamin said his trip explored restarting discussion on oil transit fees, currently at $24 per barrel, despite global reductions in oil prices.
“The reality of the fact is that the production of the oil is down. We are producing about 165,000 barrels a day and on top of that there is drop in the oil prices,” Marial told reporters in the South Sudan capital, Juba.
“There is economic reality in which both countries of course through ministries of petroleum are going to discuss that issue,” he added.
South Sudan, experts say, now receives less than $5 per barrel when transit charges paid to Sudan are deduced and oil exploring companies are paid.
(ST)
Kutoka Juba hadi Kampala ni km 112 tu, tumtume Dr.Mataragio Dr.Mahiga na Prof. Muhongo tuangalie uwezekano wa kujonga bomba la mafuta kutoka juba hadi kampala liunganishe na bomba la kutoka kampala hadi Tanga, Kutoka Juba hadi port Sudan ni km 2660 na kutoka Juba Kampala hadi Tanga ni km 1600 tu. hapo nimeunganisha na njia ya bomba la Total.
Kwa sasa South Sudan wanasafirisha mapipa laki 350 kwa siku, wakiweza kupitisha hata pipa laki moja kwa siku imetosha kabisa. Ikumbukwe Sudan wanalipwa US$ 25 kwa pipa jambo ambalo South Sudan wanaona wananyonywa.
A pipeline that transports crude oil from the south to Port Sudan (Reuters)
“We are left with no option at the moment rather than to shut it down because it’s not feasible. We cannot sell the oil at loss”, the ministry said in a memo sent to Sudan’s Ministry of Petroleum and Mining.
South Sudan, according to a negotiated agreement, pays Khartoum up to $25 per barrel for its crude oil transported through the Sudanese territory.
Juba’s letter requesting the Sudanese Petroleum and Mining Ministry to reconsider its transit fees comes in the wake of changes in global oil prices.
The price of crude oil is currently at $29 dollars per barrel in the international markets.
Presently, South Sudan is producing oil at 160,000 barrels per day, despite a decline in its oil production due to the violent conflict that engulfed the young nation, killing thousand and displacing nearly two million people.
SUDAN WILL STICK TO OIL FEES
Meanwhile, a Sudanese said Khartoum would not change terms of the agreement for the transportation of South Sudan’s oil across its country.
In a statement published in the Qatari newspaper al-Raya, Sudan’s Finance minister, Badr al-Din Mahmoud, said the transit fee for South Sudan’s oil is of two parts, citing the $ 9.5 as transit fee and $15 as a transitional financial arrangement, agreed after South Sudan seceded from Sudan.
“That makes a total of 24.5 U.S Dollars per barrel,” said Mahmoud, further stressing that South Sudan’s oil transit fee was bound by an agreement signed in September 2013 and that it was not amended or re-negotiated.
Following a recent visit to Khartoum, South Sudan’s foreign affairs minister, Barnaba Marial Benjamin said his trip explored restarting discussion on oil transit fees, currently at $24 per barrel, despite global reductions in oil prices.
“The reality of the fact is that the production of the oil is down. We are producing about 165,000 barrels a day and on top of that there is drop in the oil prices,” Marial told reporters in the South Sudan capital, Juba.
“There is economic reality in which both countries of course through ministries of petroleum are going to discuss that issue,” he added.
South Sudan, experts say, now receives less than $5 per barrel when transit charges paid to Sudan are deduced and oil exploring companies are paid.
(ST)
Kutoka Juba hadi Kampala ni km 112 tu, tumtume Dr.Mataragio Dr.Mahiga na Prof. Muhongo tuangalie uwezekano wa kujonga bomba la mafuta kutoka juba hadi kampala liunganishe na bomba la kutoka kampala hadi Tanga, Kutoka Juba hadi port Sudan ni km 2660 na kutoka Juba Kampala hadi Tanga ni km 1600 tu. hapo nimeunganisha na njia ya bomba la Total.
Kwa sasa South Sudan wanasafirisha mapipa laki 350 kwa siku, wakiweza kupitisha hata pipa laki moja kwa siku imetosha kabisa. Ikumbukwe Sudan wanalipwa US$ 25 kwa pipa jambo ambalo South Sudan wanaona wananyonywa.
Napendekeza Raisi Magufuli na Museveni waishawishi Sudani kusini ijenge bomba la mafuta kutoka Sudan kusini hadi uganda ili waunganishe na lile linalokuja Tanzania mafuta yao yaje yaondokee bandari ya Tanga .Bomba hilo likitumiwa na nchi hizo mbili litawasaidia Uganda pia kupunguza gharama za uendeshaji kwani watakuwa wana-share na sudan kusini,
Faida ya Sudan kusini kujenga hilo bomba kupitia Uganda ni kama ifuatavyo
1.Usalama wa hilo bomba kwani linapita maeneo ambayo raia wa sudan kusini na wale wa kaskazini mwa uganda ni ndugu.Wametenganishwa tu na mpaka.Bomba halitapita maeneo ya waasi au yenye tishio la Alshababu
2.Uhusiano wa Uganda,Tanzania na sudan kusini ni mkubwa na wa kuaminika
3.Kwa kupitisha mafuta eneo hilo Sudan kusini itaweza uza mafuta yake kwenye masoko makubwa ya Tanzania,Kongo,rwanda,burundi,Zambia,Malawi na kenya kirahisi pamoja na kusafirisha nje ya nchi kirahisi
4.Umbali wa Kujenga bomba kutoka sudan kusini hadi uganda ni karibu kuliko kulijenga kwenda bandari ya Lamu.Angalia Ramani