By Aaron Maasho
ADDIS ABABA, Aug 4 (Reuters) – Sudan and South Sudan late on
Friday broke off talks to end hostilities after failing to end
their disputes on border security and oil payments despite
Khartoum making some oil price concessions, officials said.
The U.N. Security Council had given the neighbours until
Thursday to resolve their conflicts or face sanctions. The
African Union (AU), which is hosting talks, is now expected to
extend the deadline to try bridge the differences, diplomats
said.
The two nations came to the brink of a full war in April
after border fighting escalated, the worst violence since South
Sudan became independent in July last year under a 2005
agreement that ended decades of civil war with Khartoum.
The messy divorce failed to mark the disputed border and to
define how much landlocked South Sudan should pay to export its
oil through the north. Oil is the lifeline of both economies.
The rivals appeared to make headway in the past few days
with both sides making concessions to end the oil dispute, which
saw Juba shut down its production in January after Sudan took
millions of barrels for what it said was unpaid fees.
South Sudan said last week it was willing to pay $9.10 and
$7.26 per barrel to export oil through two pipelines crossing
Sudan, alongside a $3.2-billion-dollar package to compensate for
the loss of most oil reserves to the South. It had previously
offered $2.6 billion.
Sudan itself lowered its demand to $15 a barrel per
pipeline, down from $32 a barrel, officials from both sides
said. It had until last week insisted on $36 a barrel.
But South Sudan’s top negotiator Pagan Amum said Khartoum
was still demanding too much.
“Sudan has been attempting to extort, to take advantage of
South Sudan as a landlocked country. Sudan has attempted to
impose very exorbitant transit fees,” Amum told reporters late
on Friday in Addis Ababa where talks take place.
Both sides have also failed to agree set up a demilitarized
buffer zone as a first step to improve border security.
Amum said international arbitration was now the best way to
find a solution for the disputed border regions.
“Also, we expect the (AU) to recommend that all the
remaining disputed and claimed areas be referred to
international arbitration,” Pagan said.
Sudanese officials confirmed talks had been broken off until
the African Union decided on further steps.
Sudan insists on a border security agreement first, before
agreeing on oil. Khartoum accuses South Sudan of supporting
rebels in two of its southern border states, claims some
diplomats find credible despite Juba’s denials.
South Sudan itself accuses Khartoum of often bombing its
side of the border. Although Khartoum denies this, Reuters
reporters have witnessed several such aerial attacks.
On Friday, U.S. Secretary of State Hillary Clinton urged
both sides to reach first a deal on oil to end hostilities.
