Saturday, January 21, 2012

South Sudan Halts It's Oil Production Over Dispute With Sudan



South Sudan To Halt Oil Production Over Dispute With Sudan -- Miami Herald/McClatchy News

NAIROBI, Kenya -- South Sudan moved Friday to shut down its oil production, the latest development in an epic game of double-dare that threatens not only South Sudan's economy but also that of its neighbor and antagonist, Sudan, just six months after the world heralded the peaceful split of the old Sudan with fanfare and hurrahs.

If implemented, the shutdown of oil production would deprive the infant South Sudan of virtually its only source of revenue and would bite a major hole in Sudan's budget, already deeply in red after its southern third seceded.

Read more ....

More News On The Oil Conflict Between Sudan And South Sudan

South Sudan Plans to Shut Down Oil Output Over Sudan Fees -- Bloomberg Businessweek
South Sudan Threatens Oil Production Shutdown -- Voice of America
S.Sudan plans to halt oil output within 2 weeks -- Reuters
South Sudan shuts down its oil production countrywide -- Sudan Tribune
South Sudan: Juba Insists Khartoum Involved in Oil Theft -- allAfrica.com
Ban voices concern over tensions between Sudan and South Sudan -- UN News Centre

My Comment: Sudan's demand for a $36-per-barrel fee, a charge well above any other precedent set around the world, is bizarre .... but such is the sad state of Sudan - South Sudan relations today. South Sudan will now probably start looking for alternative routes .... but I expect North Sudan to react negatively and provocatively when this happens.

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