{{Sudan’s president ordered a stoppage of all South Sudan’s oil exports from Sunday, accusing his neighbor of backing rebels on his territory, and bringing the foes back to the brink of confrontation after months of relative peace.}}
President Omar Hassan al-Bashir urged youths to join the army and prepare for “holy war”. He did not name the enemy but the head of Sudan’s paramilitary forces said his men were ready to confront Khartoum’s long-time opponent South Sudan.
The order to shut pipelines carrying oil from landlocked South Sudan through Sudan to a port on the Red Sea – the South’s only route to market – came just three months after the countries ended a bitter dispute over crude.
“Tomorrow you … will order the oil companies to close the pipeline,” Bashir told Oil Minister Awad al-Jaz, standing behind him during a televised speech outside Khartoum.
Sudan and South Sudan – which split into two countries in 2011 after decades of war fuelled by oil and ethnicity – agreed in March to restart the crude flow following a 16-month shutdown triggered by an argument over transit fees and territory.
Crude had only just started to move through the pipelines in May, with the first cargoes sold last week for shipment from Port Sudan.
It can be very costly to close the pipelines, which can become blocked if the waxy oil stops halfway. The Chinese, Indian and Malaysian firms dominating the sector have been facing rising operating costs due to the shutdown since January 2012, oil sources say.
South Sudan would also have to shut down its entire oil production because it has no storage facilities.
“Sudan will not allow revenues from oil exports from South Sudan to be used to buy arms for rebels and mercenaries,” Bashir said in the televised speech.
A confirmed oil stoppage would dash hopes of an economic lifeline to both underdeveloped countries. The last shutdown ravaged both their economies as oil was the main source of state revenues and the dollars needed to pay for food imports.
South Sudan had started to pump 200,000 barrels per day in April. Its output was around 300,000 bpd before the shutdown.
{{wirestory}}
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