- Title: SOUTH SUDAN: Austerity measures to counter oil stop in South Sudan.
- Date: 24th January 2012
- Summary: JUBA, SOUTH SUDAN (JANUARY 23, 2012) (REUTERS-ACCESS ALL) VARIOUS OF PRO-GOVERNMENT SUPPORTERS CHANTING IN SUPPORT OF A SHUT DOWN OF OIL PRODUCTION VARIOUS OF SOUTH SUDAN PRESIDENT SALVA KIIR ARRIVING AT PARLIAMENT (SOUNDBITE) (English) SOUTH SUDAN PRESIDENT SALVA KIIR SAYING: "In total the revenue that the government of Sudan has looted since December amounts to approximately 815 million (US dollars)." PARLIAMENTARIANS LISTENING TO KIIR'S SPEECH (SOUNDBITE) (English) SOUTH SUDAN PRESIDENT SALVA KIIR SAYING: "Whatever austerity measures that are required, we are confident that we will continue to meet critical obligations for national security and public welfare." PRO-GOVERNMENT SUPPORTERS OUTSIDE GOVERNMENT (SOUNDBITE) (English) RING LONGAR, STUDENT SAYING: "Sudan is always behaving towards us that shows we are not people. They behave as if we are animals. I believe that even if people suffer more, I will endure this situation until things become better." CROWD SINGING "NEVER SURRENDER." CROWD CHEERING. MAN SHOUTING "LOOTING OUR OIL IS A CRIME." (SOUNDBITE) (ENGLISH) JOHN JOK CHUOL, SOUTH SUDANESE MP FROM JONGLEI STATE SAYING: "I grew up and got married without a salary and my children continued living without a salary. There is no problem of salary. We will live without salaries." CROWD SINGS "NEVER SURRENDER" AND WAVES FLAGS
- Embargoed: 8th February 2012 12:00
- Location: South Sudan, South Sudan
- Country: South Sudan
- Topics: Economy
- Reuters ID: LVA3C4ARVI513QLQJW7HXDFRO0U1
- Story Text: South Sudan's president announces austerity measures to compensate for shut down of oil production after row with Sudan over transit fees.
South Sudan's government announced on Monday (January 23) new austerity measures were put in place to compensate for the shut down of oil production.
Production was temporarily halted on Sunday (January 22) after South Sudan accused Sudan of seizing millions of dollars worth of crude, escalating an increasingly bitter row over oil revenues between the former civil war foes.
Around one thousand people marched to parliament to support the government's decision to shut down oil production.
The crowd, mostly university students, cheered, waved their fists in the air and carried placards reading: "Looting our oil is a crime" and "We call on the international community to help the infant country."
Addressing parliament, President Salva Kiir said stopping production sent a clear message to Sudan.
"In total the revenue that the government of Sudan has looted since December amounts to approximately 815 million (US dollars)," he said.
Kiir said his government was planning to reduce its dependence on oil revenues, which make up 98 percent of state income. Full details of the cost cutting measures are yet to be released.
"Whatever austerity measures that are required, we are confident that we will continue to meet critical obligations for national security and public welfare," he said.
South Sudan became independent in July under a 2005 peace agreement with Khartoum that ended decades of civil war but both sides have failed to agree how to untangle their oil industries.
The new landlocked nation needs to use a northern pipeline and the port of Port Sudan to export its crude but has failed to reach an agreement with Khartoum over a transit fee, prompting Sudan to start seizing oil as compensation.
South Sudan started shutting down oil output on Sunday (January 22) and expected to finish the process within two weeks.
Officials said in November South Sudan was producing about 350,000 barrels of oil per day.
Kiir is due to meet Sudanese President Omar al-Bashir Friday in the Ethiopian capital, Addis Ababa where the African Union has been mediating talks between the two nations.
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