Sudan pessimistic about oil dispute deal

KHARTOUM - Sudanese President Omar al-Bashir expressed pessimism about reaching a deal between his country and South Sudan to end their oil dispute, Khartoum Al-Ahdath daily reported Tuesday.

The paper quoted al-Bashir as saying that "there is no hope despite everything we made since the beginning until the release of the South's oil ships on Sunday."

Al-Bashir on Monday returned to Khartoum after attending regional summits in the Ethiopian capital Addis Ababa, putting an end to speculations that he would sign an agreement with South Sudan to end the oil dispute between the two countries.

On the sidelines of the summit of the Inter-Governmental Authority on Development (IGAD), al-Bashir took part in a four-party summit, which was also attended by South Sudan's President Salva Kiir Mayardit, Ethiopian Prime Minister Meles Zenawi and Kenyan President Mwai Kibaki, to find a settlement for the oil dispute between Sudan and South Sudan.

Al-Bashir and Kiir were expected to sign a framework agreement in accordance with which Juba pays $4 billion to Khartoum and pumps 35,000 barrels of crude oil daily to the refineries in the north, provided that Khartoum allows the south to use its oil infrastructure to export oil.

However, Kiir refused to sign the framework agreement at the last moment, prompting al-Bashir to direct Khartoum's negotiating delegation to leave for home.

Sudan on Sunday released three oil ships of South Sudan that were held at port-Sudan due to unpaid transit fees.

However, South Sudan's Petroleum Minister Stephen Dhieu Dau said Khartoum's release of the oil ships was just a political propaganda.

Some media on Tuesday quoted Dau as saying that "there are about 6 million barrels of oil still held at port-Sudan."

However, Ishaq Bashir Jamma, state minister at Sudan's petroleum ministry, described South Sudan government's statements as an attempt to confuse the media.

He told reporters Tuesday that al-Bashir's directive on releasing South Sudan's oil ships has been implemented, expressing hope that the move would contribute to pushing the mediating efforts by the African Union (AU).

The two sides have agreed to resume the negotiations in Addis Ababa on February 10 under the patronage of an AU panel led by former South African President Thabo Mbeki.

The South Sudanese government accuses Khartoum of shipping away and selling some of the south's oil, while Sudan claims that it is only deducting transit fees in the form of oil.

After the independence of South Sudan in July 2011, Sudan lost two-thirds of its oil resources, while the two sides have not agreed on the oil-sharing issue yet.