Juba warns Khartoum against oil confiscation www.AllAfrica.com Juba, 03/12/11 - The Minister of Petroleum and Mining Stephen Dhieu Dau has issued a statement explaining the position of South Sudan Government following a press statement by Sudan that it will confiscate 23% of the South Sudan government’s entitlement of oil allegedly as payment in kind for what the Sudan government refers to as pipeline and transit fees. He said that the government of South Sudan already is paying fees for the use of pipelines and other oil-related infrastructures located in Sudan, adding that the implication in that statement that South Sudan is not paying for the use of that infrastructure is "blatantly false" and therefore seizing such large quantity of oil is illegal and tantamount to confiscation. Dau pointed that operators of the pipelines in Sudan have been invoicing the government of South Sudan in accordance with established pipeline tariffs that apply on a non-discriminatory basis to all shippers on those pipelines, and South Sudan has settled or will settle those invoices in the ordinary course of business, the Minister stressed. He accused the government of Sudan of apparent intention to impose charges on South Sudan in addition, or in replacement of the cost based tariffs that apply under established agreements administered by the pipeline operators, even though the government of Sudan only has partial ownership in one of those pipelines and does not operate either of the pipelines. The Minister said not only does this intention by Sudan violate the contractual and legal structure governing those pipelines, but it also violates " clear principles of international law", which stipulates that transport tariffs and transit charges need to be non-discriminatory and cost based.
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