World's Newest Country: South Sudan's Oil Remains a Sticking Point

By Fick, Maggie | The Christian Science Monitor, July 8, 2011 | Go to article overview

World's Newest Country: South Sudan's Oil Remains a Sticking Point


Fick, Maggie, The Christian Science Monitor


As its independence draws near, South Sudan has yet to agree how to divide oil revenues with its northern neighbor, which has the infrastructure to export the oil the south needs to sell to survive.

- World's newest country is a three-part series on the challenges facing South Sudan.Part 1: Can South Sudan limit internal strife?Part 2: South Sudan's oil remains a sticking point

When Africa's largest country splits in two on Saturday, the two new states would prefer to go their separate ways - if it wasn't for their pesky oil problem.

As much as the governments of Sudan and the Republic of South Sudan would like to bid adieu for good on July 9, in the immediate future their oil industries will remain inextricably linked, and the hope of security and working relations between the two states will rest largely on how the two governments manage their interactions over the resource that is currently the lifeblood of both of their economies.

The basic calculus is simple. For the solely oil-driven southern economy to survive, the region's significant oil largesse must continue to find a way out of its soil. For the moment, the only option is through pipelines controlled by the northern government that lead to refineries in the northern city of Port Sudan, on the Red Sea.

Insiders to the north-south talks over the past five months say that negotiating the future of the north's and south's shared oil industries has been one of the most contentious aspects of the African Union-mediated and US-supported talks.

Cutting a new deal

This comes as no surprise given the stakes of the talks. They were intended to result in a "deal" for wealth-sharing beyond July 9, a replacement for the current 50-50 split which has evenly divided Sudan's oil revenues between the northern and southern governments for the past six years of fragile peace.

A sticking point for the southern government is that the majority of the revenues that both sides current accrue comes from oil drilled in the south - oil that Juba feels it should be able to exploit exclusively after independence. For its part, Khartoum has the "hardware" needed to extract southern oil, and given its own economic challenges, needs to use its advantage to keep its oil revenues as high as possible in the months and years to come, if only through expensive pipeline fees charged to the southern government.

After months of tense negotiations and reportedly numerous attempts by oil experts from the Norwegian government and elsewhere to provide viable proposals for the two sides, it is now certain that there will be no deal on oil before the north and south become separate states on Saturday. But not reaching a deal soon could be dangerous, warns US Ambassador Princeton Lyman, President Barack Obama's Special Envoy to Sudan.

"By the end of July they are going to have to decide how to manage the oil sector," Mr. Lyman says. "They can't just let it slide because that could lead to a conflict by the end of the month."

Although it appears that both sides want to keep the oil flowing after July 9 under the current arrangement, the resource watchdog group Global Witness has expressed its concern that the north-south relationship could be too fragile and mistrusting for the two sides to reach a deal. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

World's Newest Country: South Sudan's Oil Remains a Sticking Point
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.