South Sudan accuses north of diverting oil transports

The young African country of South Sudan recently decried the actions of its northern neighbor and former country, Sudan, saying the nation has held up oil tankers from the south, according to The Associated Press.

South Sudan claimed roughly three-quarters of the oil fields in the Sudan when it declared independence, amounting to roughly half of the nation's revenue. However, South Sudan is a land-locked nation and all of its oil pipeline infrastructure leads to the north and ultimately to Port Sudan.

With relations between the two nations still strained, negotiations over payment for use of the pipelines have progressed slowly. Sudan has suggested prices as high as $36 per barrel while South Sudan has countered with prices as low as 70 cents per barrel.

With these negotiations ongoing, South Sudan MInister of Petroleum and Mining Stephen Dhieu Dau reports that his nation's northern neighbor has held up oil transports carrying around 3.4 million barrels.

Bloomberg reports that South Sudan hopes to avoid this problem by building a new oil pipeline capable of diverting as much as 13 percent of its production away from Sudan.

More data on the oil industry in Sudan can be found at PennEnergy's Research area.



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