China seeks peaceful resolution to Sudan oil dispute

A Chinese envoy expressed concern about tensions between Sudan and South Sudan over a fee dispute threatening oil supplies from the recently separated countries, and urged the two sides to peacefully resolve the matter, Xinhua reported on Sunday.Reuters reports that China is a major customer for Sudanese crude oil and has sought to maintain good relations with both countries since South Sudan seceded in July, taking some three-quarters of the formerly united countrys 500,000 barrels per day of oil production."China encourages the two parties to stick to the peaceful option, adopt active procedures to avoid further escalation and resolve the difference through dialogue and negotiations," Special Envoy for African Affairs Liu Guijin said in a statement issued by the Chinese embassy in Khartoum and cited by Xinhua.Liu held talks with Sudans First Vice-President Ali Osman Mohamed Taha in Khartoum on Saturday after visiting Juba, capital of South Sudan, where he held similar talks with South Sudans officials, including President Salva Kiir Mayardit.Oil is vital to both Sudan and South Sudan, but they have not agreed on how much the landlocked South, which must send its oil exports through pipelines in Sudan to a port, should pay in transit fees.Khartoum had threatened to stop South Sudans oil exports through Sudan if South Sudan failed to pay the oil exports transit fees.Late last month Sudan denied it had halted South Sudans oil exports but said it had confiscated crude shipments to make up for payments it claims South Sudan owes."The international community, including China, expresses concern towards these developments," Liu said.The United States, which along with Britain and Norway formed a "troika" in 2005 to support peace efforts between the two sides, said last week that new proposals in talks brokered by the African Union warranted careful consideration.
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