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Sudan jets bomb South Sudan

November 10, 2011

Petroleum Economist calls this the possible beginning of an oil war:

South Sudan declared its independence from the north on 9 July this year. However, a number of issues remain outstanding between the new neighbours, the most crucial of which hinges on oil.   Sudan lost 75% of its pre-independence output of 500,000 barrels a day after South Sudan’s secession, but controls the country’s only export pipeline and deep-water port. The only viable export route for South Sudan’s oil production – which accounts for 98% of the new nation’s income – is through Sudan.  But the two sides have yet to agree a deal allowing South Sudan access to export infrastructure. A border demarcation dispute has also added to tensions. In the past two months, relations between the two countries have deteriorated severely.

 

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