Sudan leaders meet on oil wealth

Omar al-Bashir
The President of Sudan

Sudan leaders meet on oil wealth

The President of Sudan, Omar al-Bashir and his South Sudan counterpart, Salva Kiir are meeting in the Ethiopian capital Addis Ababa to discuss a deepening crisis over sharing their oil wealth.

South Sudan last week said it was suspending oil production, accusing Sudan of ‘stealing’ its oil.
 When South Sudan became independent last July, Sudan lost most of its oil. However, the export pipelines go through Sudan, which has seized about $815m (£520m) in oil revenue, accusing the south of not paying transit fees.

The Presidents of Ethiopia and Kenya will attempt to reconcile the two leaders at the talks in Addis Ababa.

Worsening tension

The tensions over their oil dispute has been worsened by border clashes, with Sudan denying accusations that it had bombed a refugee camp in South Sudan housing people who had fled a conflict across the frontier.

The two countries trade accusations of backing each other's rebel groups.
Mr Kiir was a leading member of a rebel group which fought Sudan for two decades before a peace deal paved the way for the south's independence.

Damaging Consequences

A lot is dependent on the outcome of the meeting as South Sudan's threatened shutdown in oil production if completed;  would damage the already struggling economies of both countries.

In 2011, the South Sudanese government estimated that 98% of its total budget came from oil revenues.

African Union mediators have said that Sudan and South Sudan are not far away from returning to actual conflict. 

Reducing dependence

 South Sudan on Wednesday announced a deal with Kenya to build an oil pipeline linking its oil fields to Kenya's Lamu port, potentially reducing its dependence on Sudan for exports.

Reports have suggested a growing concern about the impact of the proposed pipeline on Lamu, which is one of East Africa's most beautiful and relatively unspoiled environments.

BBC/Ehimen/Cokey