The Citizen (Juba)
Ater Garang Ariath
3 December 2011
Juba — The Minister of Petroleum and Mining Stephen Dhieu Dau has issued statement explaining the position of South Sudan Government following press statement by Sudan that it will confiscate in form of petroleum 23% of the South Sudan government entitlement of oil allegedly as payment in kind for what government of Sudan refers to as pipeline and transit fees.
He said that the government of South Sudan already is paying fees for the use of pipelines and other oil-related infrastructures located in Sudan, adding that the implication in GoS statement that South Sudan is not paying for the use of that infrastructure is “blatantly false” and therefore seizing such large quantity of oil is illegal and tantamount to confiscation done by Sudan unilaterally.
Dau pointed that operators of the pipelines in Sudan have been invoicing the government of South Sudan in accordance with established pipeline tariffs that apply on a non-discriminatory basis to all shippers on those pipelines, and South Sudan has settled or will settle those invoices in the ordinary course of business, the Ministers stressed.
He accused government of Sudan of apparent intention to impose charges on South Sudan in addition, or in replacement of the cost based tariffs that apply under established agreements administered by the pipeline operators, even though GoS has only a partial ownership in one of those pipelines and does not operate either of the pipelines.
The Minister said not only does this intention by Sudan violate the contractual and legal structure governing those pipelines, but it also violates ” clear principles of international law”, which stipulates that transport tariffs and transit charges need to be non-discriminatory and cost based.
The imposition of these fees comes after a rejection by Sudan of a financial assistance package worth $5.4 billion offered by South Sudan, exceeding the proposal made by AUHIP under the leadership of mediator Thambo Mbeki, he added.
The Minister hit back that there is no economic, legal or other justification for the unilateral taking of South Sudan oil whose government deserves all its rights to take “legal action against” the government of Sudan and any other third party cooperating with it in facilitating the unlawful confiscation of South Sudan oil. He warned any company that agrees to buy or sell crude oil from the government of Sudan whether directly or indirectly and handling shipping deals and facilitating the dealing with any of the oil that the government of Sudan had stolen from the government of South Sudan.
Dau further said that the Ministry of Petroleum and Mining will direct all the foreign oil companies, the oil consortia and the pipeline companies operating or providing services to South Sudan not to cooperate with the GoS in the re-direction of any of the volumes of South Sudan entitlement crude oil to any person other than as directed by South Sudan or its authorized agents. The Minister called upon the Government of Sudan to refrain from any hostile act and reconsider its position regarding the $5.4 b package and not to deprive Sudanese citizens from the benefit from this assistance provided.
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