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Monday, 20 February 2012 - China-Malaysia firm rejects S.Sudan accusations in oil row |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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South Sudan is locked in a conflict with Sudan over oil payments. The landlocked nation took three-quarters of Sudan's oil production when it became independent in July but needs to export crude through a northern pipeline and a Red Sea port. Both states have failed to agree on a fee Juba needs to pay, prompting Khartoum last month to seize at least three southern oil shipments at the Red Sea terminal. South Sudan has shut down its entire output of 350,000 bpd. In the past few days, several southern officials have accused unspecified Chinese oil firms of helping Sudan seize southern oil. The government started an investigation last week and threatened to expel Chinese firms if they were found guilty in cooperating with Sudan. Petrodar, which pumped 230,000 bpd in South Sudan's Upper Nile state until the shutdown, said on Sunday it had always complied with instructions from Juba and had no role in seizing southern oil at the Red Sea terminal. It said it had given staff orders not to cooperate during the seizing of the three shipments which was overseen by Khartoum's security services. "Petrodar does not know the destination nor the buyers of the three shipments confiscated by the Republic of Sudan," it said in a statement. The firm also said it had always given daily updates for production and active wells after Oil Minister Stephen Dhieu Dau had questioned Petrodar's output figures. "The daily number of active wells varies from day to day based on operations, well maintenance and work-over activities," Petrodar said. Dau had said 40,000 bpd were missing at the key Palouge oil field but Petrodar blamed water separation during pumping for the difference. Petrodar is a consortium of mainly Chinese state firms Sinpoec, Chinese National Petroleum Corp and Malaysia's Petronas. It runs oil fields in South Sudan and also an export pipeline through Sudan. South Sudan's accusations have puzzled Western diplomats since China is the biggest buyer of its oil which make up 98 percent of state revenues. Petrodar also said it would take up 40 days to six months or even longer to restart oil production, putting doubts over government statements that oil output could be restarted anytime. South Sudan are due to resume oil talks sponsored by the African Union in Addis Ababa on Thursday but diplomats see no breakthrough as positions are wide apart. Sudan wants $1 billion in back payments plus $36 a barrel, while Juba has said it is willing to pay around $1 a barrel. Sudan's President Omar Hassan al-Bashir has warned the conflict could lead to war. North and south fought for decades in a civil war that killed 2 million people. (Reporting by Ulf Laessing; Editing by David Cowell) World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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