South Sudan, Sudan fail to agree on oil dispute

AP News
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Posted: Jan 28, 2012 5:08 AM
South Sudan, Sudan fail to agree on oil dispute

A South Sudan official says negotiations to end an oil dispute between South Sudan and Sudan have failed.

Landlocked South Sudan began halting oil production last week after accusing Sudan of stealing oil worth $815 million from the south.

Pagan Amum, the secretary general of South Sudan's ruling party, said late Friday that South Sudan would now "turn east" to neighbors Kenya and Ethiopia to export its oil.

South Sudan already signed a memorandum of understanding with Kenya to build a pipeline from its oil fields to Kenya's northern coast. South Sudan says it has also approached Ethiopia about a possible pipeline going to Djibouti's port.

South Sudan president Salva Kiir and Sudanese leader Omar al Bashir have been holding talks in Ethiopia.