Published on 29 July 2011

Oil the burning issue in the North-South split

Oil the burning issue in the North-South split

The public jubilation that marked the independence of South Sudan on July 9 did little to hide the fragility of the new state, especially with regards oil revenue. The question of sharing revenue from petroleum - the South's lone resource at present- with Khartoum hasn't yet been decided, and nor have the conditions behind the use of infrastructure to carry its crude to export markets. Repeated negotiations on these issues between North and South since the summer of 2010 have all drawn a blank. A fresh set of talks, which began on July 18, will therefore have to come up with the answers. For their part, the oil companies are cozying up to the authorities in Juba. In the North, the national oil company Sudapet is accelerating exploration in new areas in the hope of finding additional sources of revenue independently of the South.

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