China urges Sudan to continue exporting oil

Technical analysis for crude oil -14 June 2013

China urged the main buyer of oil from neighboring Sudan and South Sudan, the two governments on Tuesday to end their dispute over transit fees, which led the North to halt oil exports from the south.

Since the separation of the south from the north in July, China has sought to maintain good relations with both countries, despite the differences between them.

Facing China’s efforts to achieve a balance in relations between the two test after Sudan announced yesterday suspended exports of southern Sudan until a mutual agreement on the transit fee for the worsening conflict between them on how to dismantle the oil industry, which was integrated before.

Southern Sudan and separated on the ninth of July, and now controls 75% of the estimated production of the old state about 500 thousand barrels of oil per day. Most of Sudan’s oil in the south, but exports to China and other countries should be carried through pipelines and sea port in the north.

The spokesman urged the Foreign Ministry spokeswoman Lee Hong Chinese governments to avoid cutting off supplies. Hong said in a press conference on “We believe that maintaining a normal level of production of oil is important for the Sudan and South Sudan.”

“We hope to be persons of Sudan and southern Sudan, common sense and restraint and Itbnaa position is flexible and the process to resolve problems through friendly consultations.”

“We are confident of the commitment of governments to their obligations and that Admana stability and the continued cooperation of oil and Ihamaa the legal rights of Chinese companies and the safety of its employees.

By October, was not affected by China’s purchases of Sudanese crude little affected by increased imports by China in the first ten months of the year by 5.5 percent year on year to 11.12 million tons, or about five percent of China’s imports of crude.

On Monday, Ali Ahmed Osman and Acting Minister of Sudan’s oil that Sudan has suspended oil exports for the Government of Southern Sudan – an estimated 200 barrels of Love – from November 17.

He added that the pipeline is still working and that foreign companies will not be affected.

Osman said that his country was to allow South Sudan to continue to export without a final agreement expected to pay fees in arrears after the agreement. He added that Sudan is estimated arrears transit fees due on the southern Sudan by about $ 727 million for the period from the ninth of July until the end of October