South Sudan Makes $3.2 Billion Peace Offer To Sudan
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The government of South Sudan has offered to pay $3.2 billion to their Sudanese counterparts in order to resolve an ongoing conflict over oil revenues following their split last year.
On Monday, Reuters reported that South Sudanese authorities willing to assist their neighbours in plugging up their gaping budget deficit, after three-quarters of its oil production was lost following South Sudan’s independence.
The government of South Sudan has offered to pay $3.2 billion to their Sudanese counterparts in order to resolve an ongoing conflict over oil revenues following their split last year.
On Monday, Reuters reported that South Sudanese authorities willing to assist their neighbours in plugging up their gaping budget deficit, after three-quarters of its oil production was lost following South Sudan’s independence.
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But while Sudan appears to be content with the terms, Sudanese negotiators have insisted that a border security deal must be agreed upon first before discussing any oil or financial agreement.
Border fighting between both nations has escalated since April this year, with the African union and the U.N. Security Council stepping in to mediate the conflict. The U.N. Security Council have also set an August 2 deadline for the two countries to resolve all their border and oil issues, before international sanctions are imposed on them.
Pagan Amum, South Sudan’s chief negotiator, told Reuters that Juba had tabled its “last offer” on oil to their neighbours, though he was willing to accept international arbitration in order to resolve other conflicts.
“This is our last offer. We are left with nine days (before the U.N. deadline). It’s time for the parties to conclude an agreement,” Amum told reporters.
[quote]”We favour international arbitration. This, we believe, is the best amicable way,” he added.[/quote]Related: South Sudan: From Nationhood to Statehood
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Besides a $3.2 billion one-off payment to make up for Sudan’s oil revenue loss, South Sudan has also offered to forgive a $4.9 billion debt it claims Sudan owes – for oil payments before independence and for oil confiscated after.
Additionally, South Sudan has also indicated that they are willing to pay up to $9.10 per barrel to transport oil through two Sudanese pipelines. This though still falls short of Khartoum’s last demand of $32 a barrel for both pipelines.
According to the Financial Times, both sides have often improved on their offers in the past, only for deals to collapse at the last minute. The talks were also overshadowed by another round of clashes along their borders on Monday, with hundreds of thousands of residents now fleeing Sudan’s South Kordofan and Blue Nile states.
