The United Nations Security Council warned Sudan and South Sudan to halt fighting and settle their differences on splitting revenue from South Sudan’s oil reserves within three months or face possible sanctions.
The International Monetary Fund urged Sudan to divert more than $3 billion in compensation it’s set to receive from South Sudan to back reforms that will provide the government with more reliable revenue streams.
A nomadic group in the disputed border region of Abyei threatened war if it’s excluded from a referendum over the area’s status, after the presidents of Sudan and South Sudan failed to end an impasse over the issue.
South Sudanese oil may arrive at Sudan’s Red Sea port by the end of this month after the two nations’ leaders met yesterday to resolve border issues that delayed the resumption of exports, Sudan’s Foreign Minister Ali Karti said.
South Sudan, which is resuming oil output halted 14 months ago, may take as long as a year to reach pre-shutdown production levels because of possible damage to equipment, said analysts including Paul Tossetti at PFC Energy.
South Sudanese President Salva Kiir said Sudan’s threat to halt its oil exports amounted to a declaration of war and reiterated his government’s denial that it supports rebels in the neighboring country.
South Sudan will raise funds from local banks, boost tax collection and consider borrowing outside the country to offset the impact of a looming shutdown of its oil exports, Finance Minister-designate Aggrey Tisa Sabuni said.