Tensions escalate over Sudan-S Sudan oil dispute

KHARTOUM - Tensions escalated between Sudan and South Sudan as the African Union's (AU) efforts failed to settle the oil dispute that has engaged the two sides since last July when the south separated from the north.

Just one day after Khartoum said it had released three South Sudan's oil ships held at Port-Sudan, Juba said it had halted oil pumping and would not resume it until an agreement with the north is reached.

"Crude oil pumping has been halted we will not resume the operation until a comprehensive agreement, settling all outstanding issues, is reached," South Sudan's Deputy Minister of Petroleum Elisabeth James told Xinhua Monday.

"The Addis Ababa negotiations, under the patronage of the AU, have failed to come to a settlement on the oil dispute. Therefore, we have decided to implement the decision of the Council of Ministers to stop the crude oil pumping," she added.

The deputy minister reiterated that the South Sudan government is open to any solutions that are satisfactory for both sides, denying that there were political motives behind Juba's adherence to reaching a comprehensive agreement before resuming oil pumping.

"The oil issue is legal and not political. We are looking for an agreement that tackles the difference over the fees set to transport the south's oil through the pipelines of the north. This agreement should comply with the international standards," she said.

She further downplayed Khartoum's decision to release the oil ships, saying "this move is not enough to resolve the issue and we do not think it represents a good will initiative. For us, it is a right returned to their owners."

The South Sudan government on January 20 decided to stop oil production after Khartoum started holding part of the south's oil as compensation for what it calls Juba's unpaid arrears.

South Sudan earlier also announced that it signed a framework agreement with Kenya to build an oil pipeline leading to the Kenyan port of Lamu, which would reduce its reliance on Sudan's facilities.

Analysts said that there are the recent developments of the oil dispute are politically motivated and the external factors are not helpful in resolving the issue.

Mohamed Al-Nayer, a Sudanese political analyst, told Xinhua that "the South Sudan government may be seeking to escalate the oil issue and some powerful countries are supporting its stance."

The south's decision is clearly targeting the north and its economy and some people are instigating Juba not to agree with Khartoum, he noted.

"The recent round of negotiations in Addis Ababa has revealed that Juba is unwilling to end the oil dispute," said the analyst, referring to Juba's last-minute back down from an AU-brokered agreement.

After separating with South Sudan in July 2011, Sudan lost two thirds of its oil resources. The two sides have since been arguing about an oil-sharing deal.