Oil Production to be Shut Down in Southern Sudan…avoidable or not?

Pipeline fees are causing the oil production in South Sudan to be shut down within two weeks. It seems the landlocked new African Nations has failed to reach an agreement with Khartoum on how much to pay as transit fees. Sudan and South Sudan are locked in a row over sharing oil revenues. It is definitely a shocking incident: leaders of both countries cannot sit down and try to come up with an easy way out.

 Most of the oil is produced in the South and is exported from Port Sudan in the north, since it lacks infrastructure and has no port or refineries of its own thus have to export via the north. They are threatening the Sudan to seize part of its oil as compensation, it is also planning the proceeds arrangements for a complete shutdown of the oil production. Shutting down the oil production will result to loss of income in the country, for it is a source of income and the people will lose their jobs. The countries economy on both sides will be affected as well.

 Sudan and Khartoum have also failed to agree on how to divide their oil wealth. These disagreements between the two countries are causing chaos in the countries. The Sudan is accusing the Khartoum of stealing the oil. I hope these misunderstandings get cleared up before it leads to major conflicts between them, they should start to consider supplying the other neighboring countries such as Kenya. Even China as a major buyer of oil is urging the two countries to resolve their differences.

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