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Saturday, 4 August 2012 - Sudan, South Sudan reach oil deal, continue border talks: mediator |
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See the best of Reuters photography.  See more  The surface of Mars The continuing search for signs of life on the Red Planet.  Slideshow  Olympic bloopers Olympic athletes succumb to gravity when they flip, trip or fall.  Slideshow  Sudan, South Sudan reach oil deal, continue border talks: mediator Tweet Share this Email Print Related News Clinton urges South Sudan, Sudan to settle oil dispute Fri, Aug 3 2012 Clinton takes message of reconciliation to South Sudan Thu, Aug 2 2012 Sudan's Bashir turns down summit with South Sudan's Kiir Tue, Jul 31 2012 Special Report: In Himalayan arms race, China one-ups India Mon, Jul 30 2012 War and debt: Commodities trading houses cash in Wed, Jul 25 2012 Analysis & Opinion An African kleptocracy’s U.S. helpers Russian investor’s $3 million prize for physics Related Topics World » South Sudan's ruling Sudan People's Liberation Movement (SPLM) party secretary general Pagan Amum talks to the media after meeting with officials from Sudan in Ethiopia's capital Addis Ababa June 28, 2012. Credit: Reuters/Tiksa Negeri By Aaron Maasho ADDIS ABABA | Fri Aug 3, 2012 11:41pm EDT ADDIS ABABA (Reuters) - Sudan and South Sudan have reached a badly needed oil deal and will discuss restarting oil production soon but still need to resolve key border security issues to end hostilities, a mediator from the African Union said on Saturday. There was no immediate confirmation from the African arch-foes, which came close to war in April when border fighting escalated to the worst violence since South Sudan split off a year ago under a 2005 agreement to end decades of civil war. If confirmed, an oil deal would mark a big step forward in ending a long list of conflicts left over from the duo's messy divorce as oil is the lifeline for both. "It's an (oil) agreement about all of the matters. The issues that were outstanding were charges for transportation, for processing, transit," former South African President and AU mediator Thabo Mbeki told reporters. "What will remain (now)...is to then discuss the steps as to when the oil companies should be asked to prepare for the resumption of production and export," Mbeki said in Addis Ababa where the talks take place. He gave no details or time frame. The neighbors, which share a deep mistrust and have often not implemented previous arrangements, will still have to resolve the thorny issue of marking their disputed border. Landlocked South Sudan threw both economies into turmoil when it shut down in January its output of 350,000 barrels a day after failing to agree on a transit fee with Sudan, which started seizing oil to compensate for what it called unpaid fees. Oil industry sources have said restarting oil production could take six months or longer as the pipelines have been filled with water to avoid gelling and some wells were not closed properly in a rush. Mbeki's comments came as a surprise after the South's top negotiator Pagan Amum had just earlier accused Sudan of demanding a high oil fee. Both delegations had also hours earlier broken off talks without a comprehensive deal after a U.N. Security Council deadline expired. Mbeki said both sides had now time to settle the key security issue and other conflicts by September 22. But it was not clear how an oil deal would be implemented as Sudan has repeatedly said it would not agree on southern oil exports before settling the border issue. "Any agreement on oil shall be subject to the implementation of a full and final agreement on security matters," Sudan's delegation said in a position paper published on Friday. In an indication of the mistrust between the arch-foes, Juba's top negotiator Amum said, speaking just before Mbeki, that Khartoum was trying to "impose very exorbitant transit fees." Both sides had improved their offers in the past few days. Juba said last it was willing to pay $9.10 and $7.26 per barrel to use two pipelines crossing Sudan, alongside a $3.2 billion package to compensate for the loss of most oil reserves to the South. It had previously offered $2.6 billion. Sudan itself lowered its demand to $15 a barrel per pipeline, down from $32, according to officials. It had until last week insisted on $36 a barrel. BORDERS, ABYEI African Union-mediated talks, led by Mbeki, have long been hampered by differences on where to draw up a demilitarized buffer zone - seen as a crucial first step to ending hostilities. Amum reiterated calls for an arbitration body to resolve a dispute over the position of their shared border, a potentially lengthy process. He also accused Khartoum of maintaining a police force in the disputed Abyei border region, despite U.N. requests for a complete pull-out by both sides. Mbeki said Sudanese President Omar Hassan al-Bashir and his southern counterpart Salva Kiir were scheduled to discuss Abyei next month after a break for the Muslim fasting month of Ramadan. "We have informed them (AU) that there has been an agreement between the parties that the matter of the final status of Abyei will be addressed at the next summit meeting of the presidents (Bashir and Kiir)," he said. Abyei was meant to have a referendum like the South under the 2005 peace agreement but both sides have been unable to agree on who should participate. (Writing by Ulf Laessing and Aaron Maasho; Editing by Lisa Schumaker) World 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 Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices 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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