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[Dehai-WN] (Reuters): Sudan, S. Sudan sign deals to restart oil, boost trade

From: Berhane Habtemariam <Berhane.Habtemariam_at_gmx.de_at_dehai.org>
Date: Thu, 27 Sep 2012 22:51:46 +0200

Sudan, S. Sudan sign deals to restart oil, boost trade


Thu Sep 27, 2012 4:06pm GMT

* Paves way for resumption of oil production in S. Sudan

* Mbeki says deal is "giant step forward" in relations

* Abyei, border demarcation unresolved (Adds details, oil exports resuming)

By Ulf Laessing

ADDIS ABABA, Sept 27 (Reuters) - The leaders of Sudan and South Sudan signed
deals on Thursday to secure their shared border and boost trade, which will
restart crucial oil exports, but they failed to resolve other conflicts
remaining after the South seceded last year.

The deal, reached after more than three weeks of negotiations, will throw
both ailing economies a lifeline and prevent, for now, a resumption of the
fighting that broke out along the border in April and nearly led to all-out
war.

Sudan President Omar Hassan al-Bashir and South Sudan President Salva Kiir
signed cooperation and trade deals to applause at a packed room in a
five-star hotel in Addis Ababa, the seat of the African Union (AU).

"We are convinced that what has happened, which culminated in signing of the
agreements, constitutes a giant step forward for both countries," AU
mediator Thabo Mbeki said.

South Sudan seceded in July 2011 under an agreement that ended decades of
civil war, but the neighbours still deeply distrust each other and have a
history of failing to implement past agreements.

The defence ministers of both countries signed another deal to set up a
demilitarised buffer zone along the joint border.

The deal will allow landlocked South Sudan to resume oil exports though
Sudan, which will provide both ailing economies with dollars. The South in
January had shut down its entire output of 350,000 barrels a day after the
countries argued about transit fees.

Bashir said it was a "historic moment for building peace" between the former
civil war foes.

Faced with the threat of U.N. sanctions and economic collapse, Bashir and
Kiir agreed to set up the demilitarised zone.

But the two sides failed to settle the fate of at least five disputed,
oil-producing regions along the 1,800 km (1,200 mile) border, despite
pressure from the African Union, the United States and other Western powers.

"THE OIL WILL FLOW"

South Sudan's chief oil negotiator said preparations had already begun for
the resumption of oil exports.

"I believe by the end of the year, the oil will flow," Pagan Amum said in
Addis Ababa.

The two sides also failed to agree on the border region of Abyei, which has
symbolic significance to both and is rich in grazing lands.

Kiir, who described the talks as "difficult", thanked Bashir for his
cooperation but blamed his northern neighbour for failing to reach a deal on
Abyei.

"As for Abyei, it was very unfortunate that we could not agree. My
government and I accepted unconditionally the proposal of the AUHIP (African
Union panel) to the resolution of the conflict in Abyei," he told the
audience.

"Unfortunately, my brother Bashir and his government totally rejected the
proposal in its totality," Kiir said.

Details of the AU's proposal were not immediately clear.

The U.N. Security Council had set a Sept. 22 deadline for a broad deal to
end hostilities, but that was informally extended until the end of the Addis
Ababa summit, which Kiir and Bashir joined five days ago.

The border deal provides for both armies to pull back 10 km (6 miles) from
the frontier. Special arrangements will be made for a strategic strip of
land called Mile-14, which is important to Arab tribes allied to Sudan.

But the lack of a permanent solution for the disputed regions will pose
future risks to border security. Their fate may have to be settled through
international arbitration.

Also indirect talks between Sudan and the rebel Sudan People's Liberation
Movement-North (SPLM-N), which is fighting the Sudanese army in two areas
bordering South Sudan, failed to make tangible progress.

"Nothing has been achieved," SPLM-N's Yasir Arman said in an interview
before the deal was signed, adding that Sudan could have no real border
security without involving the SPLM-N.

"We need to be included (in the security talks)," he said.

The SPLM-N is part of an alliance with rebels from the western region of
Darfur who want to topple Bashir. Sudan refuses indirect talks and accuses
the south of supporting the SPLM-N, which controls some territory on the
Sudanese side of the border.

Diplomats say each side supports rebels on the other side. (Writing by Yara
Bayoumy)

C Thomson Reuters 2012 All rights reserved

 

 




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