Sudan's oil transforms from curse into blessing

[Coeus]

Oil inflamed Sudan's civil war for decades but could now help seal the peace as the south becomes independent and needs the north to refine its crude.

Rhetoric and tensions are rising between the former north- south foes as Sudan hurtles towards the January 9 southern referendum on secession -- the culmination of a 2005 peace deal which shared wealth and power and promised democracy.

In Africa's largest country almost 75 percent of the current 500,000 barrels per day of crude output comes from wells in the south, but is exploited, refined and transported by the north.

But that very equation, along with the fact that both governments in the north and south are heavily dependent on crude revenues, could draw a line which neither side is willing to cross and stop them short of resuming full hostilities.

"Oil has a bad image -- corruption, fuelling war. But in the case of Sudan, it's helped push for peace," said al-Sir Sidahmed, an energy expert advising Sudan's petroleum ministry. "They simply can't afford to have oil to stop even for one day."

The semi-autonomous southern government, formed in 2005, derives some 98 percent of its revenues from crude. Some 45 percent of Khartoum's budget comes from oil, which makes up around 90 percent of its exports.

Neither economy has moved to diversify away from oil dependency since 2005 and it will take years for either economy to do so in any significant way.

This leaves no option but to continue -- in a form still open to negotiations -- the sharing of oil wealth even in a likely post-secession

Read more at: http://af.reuters.com/article/topNews/i ... 9920101214

[Oxidant]

I heard there was some Oil discovery in Northern Sudan some time ago

[Coeus]

I heard there was some Oil discovery in Northern Sudan some time ago

Maybe, but they have alot to lose after this secession. Wallahi i wouldnt mind the seccesion if the people in the South sudan were bright educated nationalists. But with their agricultural, oil, mineral and water wealth. They will be having the worts misery in Africa for centuries. They will be having kongo style massacres and corruption at wide scale. And the westerners will be getting very rich of it.