Oil Supply: South Sudan halts production
The North’s demand for 23 per cent of the South’s export bound oil as payment in kind has led to the dispute.
JUBA:
South Sudan has ordered a halt to oil production that provides around 98% of its revenue, amid a deepening row with North Sudan over pipeline fees. The North’s demand for 23 per cent of the South’s export bound oil as payment in kind has led to the dispute. South Sudan lacks the infrastructure to refine and export oil, for which it relies on the North where crucial facilities including the pipelines and the Red Sea export terminal are located. Officials say the embargo will take at least seven days to become effective. Meanwhile, the two sides have agreed to negotiations during the African Union meet next week.
Published in The Express Tribune, January 22nd, 2012.
South Sudan has ordered a halt to oil production that provides around 98% of its revenue, amid a deepening row with North Sudan over pipeline fees. The North’s demand for 23 per cent of the South’s export bound oil as payment in kind has led to the dispute. South Sudan lacks the infrastructure to refine and export oil, for which it relies on the North where crucial facilities including the pipelines and the Red Sea export terminal are located. Officials say the embargo will take at least seven days to become effective. Meanwhile, the two sides have agreed to negotiations during the African Union meet next week.
Published in The Express Tribune, January 22nd, 2012.