Sudan-South Sudan: Khartoum Seizes South’s Oil Wells

Wednesday, 22 February 2012

Background

South Sudanese officials announced on 16 February, that Sudan has seized control of two oil blocks in the north-eastern border state of Upper Nile.

Comment

The seizure comes after South Sudan gave the order to suspend its oil production on 22 January amid tense negotiations over the region’s oil. When it gained independence in July 2011, South Sudan took with it three-quarters of Sudan’s oil. With all the pipeline and export facilities situated in the north, however, the issue has been a catalyst for ongoing, and increasingly heated, enmity between the two countries.

Lacking the military strength and resources to challenge the Sudanese seizure of the two of its six oil blocks, South Sudan is expected to maintain its military presence in its remaining oil-rich border regions, as negotiations are scheduled to continue on 23 February.

With the United States, China and the African Union watching with interest, the latest round of talks is expected to resolve the price-per-barrel tariffs for South Sudanese access to Sudan’s infrastructure.

Sudan is demanding US$32 per barrel for the transit of South Sudanese oil. South Sudan, however, is unwilling to pay above normal international charges of around one dollar. This presents a problem for Sudan, which is now badly in need of hard currency. 

With so much at stake for both countries, further bloodshed over South Sudan’s oil now seems inevitable.  

Ashley Woermann

Future Directions International Research Assistant

Indian Ocean Research Programme

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