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John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

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South Sudan Offers Khartoum "Package" Over Oil Shipments

Call it a “package,” though a more accurate word might be “bribe.”

South Sudan’s government has offered Sudanese authorities in Khartoum a “package” to break the rising tension-filled gridlock over South Sudan using its northern neighbour’s pipeline network to ship out its oil exports.

Sudan People’s Liberation Movement (SPLM) Secretary General Pagan Amum Okiech announced in Juba that the “package” is part of the proposal they plan to present to the African Union (AU) High Level Implementation Panel (AUHIP) on Sudan, chaired by former South African president, Thabo Mbeki.

Amum, head of the South Sudan negotiating team on post-independence negotiations, reiterated Juba’s commitment to reporters to strike a deal with Khartoum on all outstanding issues, including the disputed Abyei region, border demarcation, debt, oil transit fees and border trade.
Amum said, "The SPLM and the government of South Sudan have decided to offer financial transitional assistance to the north as a way of resolving the obstacles on oil transportation. This decision is contained in a proposal to be submitted to the AU implementation panel."

Like Siamese twins, Sudan and South Sudan need each other if their future prosperity is to be ensured.


While the former Sudanese unitary state’s daily oil output is now approximately 500,000 barrels per day (bpd), 75 percent of the country's oil production facilities now lie under South Sudan’s territory, but the transit oil export pipelines remain under Khartoum’s control.

The 2005 Comprehensive Peace Agreement (CPA) stated that northern and southern Sudan would equally split the revenue from oil exports, but the CPA has proven difficult to implement, as the pipeline network to transit South Sudan’s oil to Sudan’s Indian Ocean coastline run through the country’s Muslim north, controlled by the administration of Sudan’s President Omar al Bashir.

Increasing Sudan’s militancy over revenue issues with its newly independent southern neighbor is the fact that Sudan is currently suffering from extensive corruption, a $38 billion external debt burden, rising inflation and U.S. sanctions. Of these burdens South Sudan is equally subject, though not to Washington’s proscriptions of the new nation being a supporter of international terrorism.

But an element of South Sudan politics is also roiling Juba’s relations with Washington.

According to a statement released on 21 November by National Security Council spokesman, Tommy Vietor in Washington, White House Deputy National Security Adviser Denis McDonough during a visit to Juba informed the government of South Sudan that it must end all support it provides to Sudan People Liberation Movement North (SPLM-N) that is currently engaged in fighting with Sudan in the border states of Blue Nile and South Kordofan. Vietor stated, “In Juba, Mr. McDonough and Special Envoy Lyman addressed these same crises and the need to respect the sovereignty of Sudan, including by ending support for the Sudanese People’s Liberation Movement-North (SPLM-N) in Southern Kordofan and Blue Nile.” Both states border South Sudan and their population largely fought alongside the south during Sudan’s north-south second civil war, which raged from 1983 to 2005.

Vietor’s statement oddly provides a diplomatic boost to Khartoum, which has already lodged two complaints since South Sudan achieved independence on 9 July with the United Nations Security Council claiming that Juba is aiding SPLM-N fighters. More ominously, al Bashir threatened that Sudan is running out of patience and is prepared to go to war over South Sudan’s support to SPLM-N.

Amum declared, "The Republic of South Sudan is willing to help Sudan in efforts to address its economic crisis resulting from the separation," reiterating his proposal made a month ago that Khartoum relinquishes its claim on the contested Abyei region and in exchange Juba will offer financial assistance to the north.

All of which begs the issue – where is Juba to get such funds and why exactly should the government of al Bashir agree to what in essence is a bribe?

The broken political crockery of the former state of Sudan is overrun with the toxic elements of massive oil revenues, guerrilla freedom fighters, weaponry and religious and political ideological clashes.


As Sudanese President al Bashir is the first serving head of state to be charged by the International Criminal Court on ten counts of war crimes, crimes against humanity and genocide for the military operations he allegedly oversaw in Sudan’s western Darfur region since civil war broke out there in 2003, it remains unclear as to why he might be amenable to Juba’s fiscal offers rather than simply wading through the country’s blood.

Sudan and South Sudan might be awash in ‘black gold,” but the future seems to indicate that the revenue will be stained with more red from the blood of its people before any resolution to the two nations’ outstanding issues appears. As Washington has essentially pronounced the SPLM-N, an integral part of the new South Sudan government, a terrorist organization, Secretary Amum should not count on Western assistance, however valiant his colleagues’ efforts were in establishing Africa’s newest state.

Accordingly, memo to Juba – you’re on your own.

By. John C. K. Daly of Oilprice.com

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  • Foteini on March 29 2012 said:
    the separation of the South would lead to a war worse that the war that ended in 2005?A: The SPLM atrepeed many times that it wants peace, not war. By the way, I noticed that the new Foreign Minister has recently issued some extreme statements, and not only about the South. Those who talk about a new war done28099t know what war is. We know. We have suffered form war throughout the decades, its killing, its bloods, the destruction, the widows, the orphans, the disperse of families, of villages and of a whole people. Q: Didne28099t some Southern leaders also issue extreme statements? How about those who hare talking about an independent South that would cooperate with the US in its e2809cWar on Terrorisme2809d?A: Under President Salva Kiir Mayardit, I represent the Government of Southern Sudan (GOSS) in the US . Ask me about this, not about statements issued by other people and other organizations. You have to know that the Southerners, since the CPA, have become free to say what they want to say; we cannot stop them. Q: How about the slogan e2809c Sudan Jadide2809d (New Sudan) that was criticized by many Northerners as a foreign-inspired plan to change Sudan e28099s Islamic and Arabic identity?A: H.E. late Dr. John Garang de Mabior, the founder and former president of SPLA/SPLM, had a vision of a New Sudan . He didne28099t want to just end the war. He, also, wanted to establish guarantees that the war would not start again, and that would be by establishing a New Sudan with the following characteristics: First, diversity of religions, cultures and ethnic groups. Second, sharing of power and wealth. Third, writing a secular constitution. Q: Didne28099t you just say the implementation of the e2809c Sudan Jadide2809d seems impossible? Has it failed?A: Yes, for now, and for two reasons: First, the NCP which controls the North doesne28099t want any changes towards secularism, diversity and democracy. They want to continue the Islamic military regime they established in 1989. Second, after the signing of the CPA in 2005, we called for e2809cWihda Jazabae2809d (Attractive Unity), and said the Northerners had a last chance to proof that they were serious and honest by building in the South infrastructures, schools, hospitals, factories and others development projects. Now, five years have passed and we see nothing of that sort on the part of the Northerners. Q: Will the Southerners vote for unity if the Northerners construct these projects?A: This is an e2809cife2809d question. Q: What should the Northerners do for the Southerners to vote for unity?A: First, official and popular, civilian and military apologies for the killing and destruction in the South during the war decades. Second, financial reparations for the physical and mental sufferings; also for the oil revenues that were not given to the Southerners duding the war. Third, free and fair elections to reflect the true powers and the diversity of the country e28093 a step towards New Sudan . - Q: What would be the following step?A: A secular constitution, like the American one. The US constitution doesne28099t segregate people because of their religions and races; it separates state and religion. Also, it doesne28099t describe the Whites, their color, culture and religion as superior, although they are the majority. Also, it doesne28099t say Christianity is the official religion, although it is the religion of the majority. I am not an Arab and I am not a Muslim. Why do I have to feel I am a second-class citizen in Sudan ? Why wouldne28099t the Sudanese constitution be like the US one? Q: Under the new constitution, could states in the North declare Islam as their official religion, and, maybe, implement the Sharia, provided that the Southern states done28099t have to do that?A: In the US , there is no state that can mix between religion and government and discriminate because of race and culture. So, if a Northern state declared Islam as its official religion, what would be the situation of its non-Muslim citizens? Q: Some Southern leaders put impossible conditions on the Northerners. Like SPLM Secretary General, Pagan Amum, who said that Northerners should stop calling Southerners e2809cAbeede2809d (Slaves)?A: I also said that because it reflects the Northerners superiority complex; it is an Islamic and Arabic superiority complex. Many African countries suffer from that, but in Sudan it is very clear and very direct. That is why I am not sure that, even if the Northerners apologized and paid reparations, they would change in the way they treat the Southerners. And that is why we want a Sudan that recognizes its African identity. 60 percent said they are Africans. So, why does an Arab minority controls the county? Q: But the Northern Arabs and Muslims are also Africans?A: If they are Afric

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