Showing posts with label Sudan oil revenues. Show all posts
Showing posts with label Sudan oil revenues. Show all posts

Thursday, 17 February 2011

South Sudan names itself

South Sudan has been chosen as the name of what will be the world's newest country when it comes into existence on 9th July, ending months of speculation.

Other suggested names had included Nile Republic and Cush, a reference to a Biblical-era kingdom in the area.

Some 99 per cent of southern Sudanese voted for independence from the north of Sudan in a referendum held in January.

The name decision was announced after a meeting of the top committee of the south's ruling SPLM party.

The SPLM's Secretary General Pagan Amum said the decision, made by the party's politburo, will require approval by parliament.

But that is a formality as the SPLM holds the vast majority of seats in the assembly.

Mr Amum said negotiations were under way with the north about how to go forward with the partition and he warned of the challenges ahead.

"We are a baby nation that has just been born - and like a human baby, we are fragile but have the potential to become great," AFP news agency quotes him as saying.

He said the current pound currency would be replaced by a new currency, also to be called the pound.

The referendum on independence for the oil-rich south was part of a deal to end decades of north-south conflict.

The week-long vote itself passed off peacefully, but tension remains high in parts of the oil-rich area which straddles the north and south.

Many issues remain to be resolved before the new country is formed, including how to deal with oil revenue. The south of Sudan contains most of the oil fields, but they have to be transported through the north.

Under the Comprehensive Peace Agreement (CPA), which brought the civil war to an end in 2005, the two sides split oil revenues evenly, but Amum announced on Tuesday 15th February that would not be the case any longer.

"The notion of sharing wealth will not be there. There is no continuation, whether 50 percent or anything," Amum said according to Reuters.

He said they will only pay a fee for using the pipelines that transport the oil to Port Sudan.

The fate of the oil-rich Abyei region is yet to be determined, although Amum said the SPLM will hold talks with the north's ruling National Congress Party (NCP) on Friday 18th February to discuss the region.

The Abyei region was supposed to have its own referendum on which State to join in January, but it was postponed when the two sides could not agree on voter eligibility.

Last week, some 200 people were killed in south Sudan's Jonglei state in fighting involving those loyal to rebel leader George Athor. Most of those killed were civilians. The SPLM has accused the north of backing Athor, while Athor blames the clashes on the southern army.

Sources: BBC News, Sudan Tribune

For more news and expert analysis about the Sahara region, please see Sahara Focus.

Thursday, 6 January 2011

Sudan needs a more transparent oil sharing deal


A new report published by Global Witness has called on Sudan for more transparent oil revenue disclosures in order to avoid conflict ahead of Sunday's [9th January] referendum on southern independence.

The report stated that with the upcoming “referendum on independence for southern Sudan just days away, oil sector transparency is now more important than ever to preserving the fragile peace between north and south."

The UK based resource lobbyist says that the unclear distribution of oil wealth has contributed greatly to the mounting tensions between northern and southern Sudan. Most of the country's oil comes from the south but the infrastructure remains in the north.

The current oil revenue sharing deal between the two regions indicates a 50:50 distribution, but Global Witness says the two sides need to come to a more transparent and effective agreement to replace the existing one that expires at the end of January.

"There has been much mistrust over whether the current revenue distribution system has been implemented fairly. Mistrust over revenue sharing was one of the primary reasons for the south's temporary pullout from the power-sharing arrangement in 2007. Evidence suggests that such concerns are not unfounded," the report said.

The upcoming referendum is part of the 2005 treaty that ended a two decade war between the north and the south. It is estimated that over 95 per cent of registered voters live in southern Sudan, while the remainder are in the north or abroad.

"With both sides hugely reliant on oil revenues from the south, this issue is paramount going into the referendum… so the single best way to ensure stability after the referendum is to put a transparent and verifiable new oil deal in place," added the report.

Sources: BBC News, CNN, FT, Bloomberg

For more news and expert analysis about the Sahara region, please see Sahara Focus.