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A South Sudanese returnee from
Khartoum sails on a barge
as he arrives at the port in
South Sudan’s capital Juba,
May 16, 2012. (Reuters)
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South Sudan has called on the international
community to assist the one-year old nation fill a huge financial gap created
by the recent agreement with Khartoum as details on oil deal emerge.
African Union chief mediator, Thabo
Mbeki, on 3 August announced a break-though deal on oil transportation fees. In
line with this agreement Juba will pay $11 for the oil produced unity state and
$9.10 for the oil of Upper Nile. The South Sudan will also pay $3.028 billion
as transitional financial assistance. The deal will last three and a half
years.
South Sudan’s vice president, Riek
Machar, on Tuesday said the deal which was reached due to the pressure exerted
by the international community has unfortunately left a huge gap of oil
revenues lost to Khartoum.
In a meeting on Tuesday with the
Ambassador of Netherlands, Kees Van Baar, the Vice President told the European
diplomat that the new nation will lose a total of $12 billion dollars to
Khartoum per the deal.
He said South Sudan will continue to
lose 17% of its total oil revenues every year for the next three and a half
years.
In detailing the figures of the deal
he said the average commercial agreement reached with Khartoum is $3.5 billion
for the next three and a half years, which is inclusive of all types of fees.
The arrears of commercial deal owed to
Khartoum which dated back between 9th July 2011, when South Sudan became
independent to January 2012, when the oil production was shut down, will also
amount to another half a billion dollars, he said.
South Sudan, he added, will also lose
$4.97 billion of debt relief which Khartoum owed South Sudan, but is now
pardoned per the agreement. There will also be an additional cash grant of
$3.03 billion to be paid by South Sudan to Khartoum to improve on its economy.
The agreement has forced the new
nation to become "the biggest donor on earth to a single country,
Sudan", Machar added.
He further analyzed that the figure is
equivalent to $40 per barrel if the whole amount lost were to be translated
into how much South Sudan could pay per a barrel of oil it produces.
He however reiterated the necessity of
the deal, adding that South Sudan was willing to buy peace and win Khartoum to
become a good neighbour.
The international community, he said,
should now come forth to assist the new nation in financing major development
projects in the country.
Sudan and South Sudanese delegations
are expected to resume talks on the other unresolved issue during the last week
of this month. A presidential summit is also planned by the mediation in
September.
After the signing of a comprehensive
deal the two countries have to seek international financial assistance.
Khartoum which is affected by the US sanctions needs Juba support to convince
the Congress to remove it.
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