Tensions between the newly independent state of South Sudan and its Northern neighbour were again high last week as South Sudan shut down its oil production, claiming Sudan was illegally siphoning oil. Oil is the main reason South Sudan is believed to be a viable state; the production of three hundred and fifty thousand barrels a day provide the government with $1,000 per citizen a year. Oil is the only income the new state possesses; it accounts for 97% of the states budget.
So many were surprised on January 20th when South Sudan announced it was taking the dramatic step of completely shutting down all oil production. The only pipeline South Sudan has to link it with its market runs through Sudan. When the countries were one state, Khartoum retained 50% of the oil revenue which accoutned for some 40% of its national budget. Following independence in July however, Khartoum recevied nothing, not even a transit fee. The two countries were unsuccessful in their attempts to negotiatie a fee agreeable to both sides prompting Khartoum to sieze some of Juba's oil exports as they arrived at Port Sudan. South Sudan it appears, tried to go one better and shut down all oil production completely.
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| Pagun Anum, South Sudan's chief negotiator. |
Has South Sudan cut off its nose to spite its face? Plans are afoot in Juba to build a new pipeline through Kenya, reducing the dependency and need for diplomacy with Khartoum. That costly endeavour is three years away at least however. In the meantime, negotiations between Khartoum and Juba are ongoing. Pagan Anum, the Souths chief negotiatior claimed South Sudan had no regrets about their decision to shut down oil production, stating "This is a matter of respect. We may be poor but we will be free,"
Perhaps someone should inform the new leadership of South Sudan that being free costs a lot of money. Roads must be built, food must be bought and education and social services must be provided. A Khartoum official wryly commented "This will hurt us but it will kill them," The current political leadership in South Sudan is far too military minded to lead a successful government and guide the new state from indepedence into fully functioning statehood; they see issues in black and white and refuse to forsee the devastating consequences of their actions. They will not just be poor if this oil shutdown continues, they will be destiture, uneducated and conflict in the country, already apparent, will become widespread.
Today, Sudan released four oil tankers it had siezed in an effort to defuse the row, but South Sudanese officials claimed this gesture is not enough. Although Sudan's demands are ridiculously overstated, South Sudan has a duty to its own people to provide for them. They must restart oil production and re-enter negotiations with Sudan. It may not be pleasant, ideal or easy but that is the case with much of the realities of modern statehood and simply something they will have to get used to.
