Sudan to release oil ships

ADDIS ABABA — Sudan agreed yesterday to free ships with South Sudanese oil as a goodwill gesture to ease negotiations aimed at resolving a furious row over pipeline transit fees with its southern neighbour.

The two former civil war foes have held lengthy negotiations, but have been unable to reach agreement over the dispute which has seen Khartoum seize oil and South Sudan take the drastic step of shutting oil production.

“We are ready to continue these talks and to prove it, we are... releasing vessels in Port Sudan to allay fears,” senior Khartoum official Sayed al Khatib told reporters in Addis Ababa, where the talks are being held.

“The vessels will be free to leave immediately,” Al Khatib added. “We expect the (South Sudan oil) shutdown to be halted and reversed.”

Sudan has been detaining three ships carrying 2.2 million barrels of oil.

In addition, Khartoum admits to have confiscated 1.7 million barrels of South Sudan crude, a measure it said was to compensate for Juba’s use of its pipeline and refinery.

On Friday, South Sudan President Salva Kiir, who met with Sudanese President Omar Hassan al Bashir in the Ethiopian capital for the oil talks, failed to sign an agreement due to Juba’s concerns over the detained ships, Al Khatib explained.

Landlocked South Sudan split from Sudan in July, taking with it three quarters of the country’s oil, but all pipeline and export facilities are controlled by Sudan.

“This oil was indeed developed when Sudan was one country and therefore all of the Sudanese people need to reap the benefit of it,” Al Khatib said. South Sudan accuses Khartoum of stealing $815 million worth of oil. Al Khatib said that Juba had not paid it for using the refinery since South Sudan seceded.