ADDIS ABABA: South Sudan set out yesterday a proposed deal with rival Sudan, offering an increased oil transit fee offer, an $8.2 billion financial support package and demanding a referendum on disputed Abyei.
The offer comes just days ahead of an African Union and United Nations imposed deadline calling on both sides to reach agreements on outstanding issues — including oil transit fees, border demarcation and security — by Aug. 2.
Pagan Amum, South Sudan’s chief negotiator told reporters Juba was ready to resume oil exports stalled in January through Sudan if “reasonable” transport fees are agreed on.
Khartoum, whose officials met with Juba’s top team late Sunday and are believed to be reviewing the offer, has so far not responded publicly.
“In the interest of peace, South Sudan is offering generous financial transfers to Sudan,” the proposed offer read. The financial package, worth $8.2 billion over three years, includes a cash payment and debt forgiveness to help fill the massive financial gap Sudan reported after the South gained independence last July.
“This is a fair and balanced agreement where each nation will benefit,” it added, noting the South was willing to pay up to $9.10 a barrel to transit its premium-quality oil through Sudan, with lower fees for poorer quality oil.
Khartoum had earlier demanded as much as $36 per barrel.
“We propose to immediately resume our exports of oil through Sudan in return for fair, reasonable transportation fees,” Amum said. Other key proposals include an international arbitration process with a strict time frame to determine where the border lies in contested — and often oil-rich — frontier regions.
However, the South demanded the disputed Abyei region must hold an AU-UN organized referendum before the year’s end to decide if it belongs to the north or the south.
The referendum, provided for in a 2005 peace deal, was supposed to happen in 2011 but was stalled after disputes over eligibility for voting.
S. Sudan sets out terms for oil deal
