SOUTH SUDAN: President Salva Kiir returns home after signing a trade and border deal with Sudan

Record ID: 344236

  • Title: SOUTH SUDAN: President Salva Kiir returns home after signing a trade and border deal with Sudan
  • Date: 29th September 2012
  • Summary: JUBA, SOUTH SUDAN (SEPTEMBER 28, 2012) (REUTERS) VARIOUS OF SOUTH SUDAN'S PRESIDENT SALVA KIIR DISEMBARKING FROM PLANE VARIOUS OF TRADITIONAL DANCERS DRUMMING AND SINGING KIIR WALKS DOWN RED CARPET AT AIRPORT JUBA RESIDENTS WITH BANNERS WELCOMING KIIR HOME
  • Embargoed: 14th October 2012 13:00
  • Keywords:
  • Location: South Sudan
  • Country: South Sudan
  • Topics: International Relations,Politics,Energy
  • Reuters ID: LVA8L6PJFHXP0L4G51MSGKYKFH42
  • Story Text: South Sudan's President Salva Kiir returns home after signing a landmark deal with his Sudanese counterpart Omar Hassan al-Bashir on border and trade disputes that will allow the young nation to restart its oil production.
    South Sudan, which gained independence just over a year ago, turned off its oil taps in January after Sudan started confiscating crude oil from the pipelines that run through its territory.
    The border deal reached after three weeks of negotiations in Ethiopia, will throw both ailing economies a lifeline and prevent a resumption of the fighting that broke out along the frontier in April and came close to full blown war.
    Both countries' defence ministers signed another deal to set up a demilitarised buffer zone along the joint border.
    "South Sudan will get a guaranteed and secure transit of its oil through the republic of Sudan paying $1 per barrel, also South Sudan will be paying an additional $1 for transportation in addition to the transportation tariffs that was there before independence," said South Sudan's chief negotiator Pagan Amum.
    Despite the promise of petrodollars filling government coffers, both sides have a history of signing but are failing to implement deals. Crucially, they failed to agree on who owned the hugely symbolic Abyei region, a disputed area that straddles their shared border.
    "South Sudan will be getting revenues, this agreement will be for a period of three-and-a-half years and then after that, the two countries will review this agreement," added Amum.
    Dar Petroleum Operating Company, South Sudan's biggest oil company, celebrated the news of the deal with a promise to get oil pumping as soon as possible.
    In a rousing speech interspersed with cheers, the President of the company, Sun Xiang Sheng, said he hopes to be pumping 180,000 barrels per day from his oil fields in Upper Nile state within three months.
    "Today all the managers, GM, VP, all talked. I know all these promised commitment from your heart. I know you have a lot of challenges; I know it's not easy for you to give us the production of 180,000 barrels per day. I know we don't have man-power," Sheng said.
    South Sudanese oil officials have said that oil fields in Unity state may take longer to come online because of damage caused by fighting between the two armies in April.
    "I also promise you, I promise you day and night work, I promise you no (going) home, before the first cargo of our crude departs from the port of Sudan," Sheng added.
    Despite the breakthrough deal, many issues remain unresolved and the potential for future conflict remains high. The rival Sudans both harbour suspicions that they are supporting insurgents in each other's countries and the border is yet to be drawn.
    ENDS.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: Audio restrictions: This clip's Audio includes copyrighted material. User is responsible for obtaining additional clearances before publishing the audio contained in this clip.
Register