Take advantage of South Sudan, Khartoum oil row

Even to the most optimistic of observers, relations between Khartoum and South Sudan were never going to be easy.

From a dark history of oppression of the Black south by the Arab north dating decades and only accentuated by British colonialism and its legacy, it was expected the two countries would at best tolerate each other.

But as things look right now, that may be over optimistic.

The North had enjoyed the benefit of oil resources to the exclusion of South Sudan, which was carved from Africa’s former largest state last July.

The country actually used the oil resources mainly exported to China to wage war against the southern territory and Darfur region amongst others. But as expected, South Sudan where most of the oil fields are located, has demanded control of the resource.

While Khartoum accepts the latter’s entitlement, matters have been complicated by its claim to a huge share of the oil revenue based on contribution to infrastructure development and use of its pipeline. According to South Sudan President Salva Kiir, Khartoum has used its claim as a basis for seizing $815 million or about Sh70 billion worth of oil.

The long and short of it is that Juba has to use the port in North Sudan to export its oil because it is landlocked.

Our advice to Khartoum which faces hard times over secession of the resource-rich South is that sense should prevail and both must reach an amicable solution. But from experience, we know that might not be possible in this region.

For instance, Ethiopia is using ports in Sudan and Somalia since political disagreements with Eritrea, a country with some of the best ports, do not allow them to exploit the facilities.

It is our considered opinion that Kenya should use the 18 months hiatus the South has imposed on oil exports to develop the relevant infrastructure to accommodate the oil movement to the Indian Ocean for export.

While we understand that the capital investment is beyond Kenya, international and local resources could fund construction of a pipeline and even a refinery and earn Kenya billions of shillings.

We on top urge that the impending Uganda oil exports be co-ordinated with that of Sudan so as to achieve economies of scale.

As much as we would want to believe that the current deadlock with Sudan is temporary, we are not blind to the frequent points of disagreement between the two neighbours, which makes it almost impossible for the South to bank on its neighbour in the long term.

That is why we think Kenya has to act in our own economic interests and facilitate development of infrastructure linking Kenya to our northern neighbours.