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Growing Sudan, South Sudan Oil Impasse Has High Stakes

African Union mediation to end an oil standoff between Sudan and South Sudan is expected to resume this week. Analysts say the stakes are high for the governments in Khartoum and Juba, both of which rely heavily on oil revenue to maintain themselves.

Jimmy Mulla, from the Washington-based Voices for Sudan advocacy group, is one of many analysts pessimistic about the current oil impasse. “I think as of now it is nearly impossible because the two parties are completely on different platforms," he said.

Disagreements on oil transfer fees and accusations by South Sudan that Sudan was stealing southern oil coming through its pipeline led to Juba’s recent decision to shut down oil production.

Mulla puts most of the blame on Sudan. “For the most part, I would still go back and say the government in Khartoum has not been forthcoming in terms of making sure this agreement goes forward. There are international standards, there are international agreements on oil revenues, whether it is a transit fee, all these things are in place, and these are references that have been tabled both by the government of South Sudan and also by the African Union mediating body, so it[...]

[Published in AidNews - Read the original article]