S.Sudan says Khartoum loading more confiscated oil

ADDIS ABABA (Reuters) - South Sudan on Tuesday said Sudan had taken control of 2.15 million barrels of southern oil at Port Sudan, loading oil onto vessels belonging to Khartoum as both countries argue over how to share oil revenues.

South Sudan became independent in July under a 2005 peace deal with Khartoum that ended decades of civil war but bilateral tensions have erupted over a long list of disputes.

The biggest conflict is over oil revenues - the lifeline of both economies. Land-locked South Sudan has two thirds of the former unified Sudan's oil output but needs to pay fees to use northern export facilities.

Sudan said on Sunday it was confiscating oil from landlocked South Sudan as compensation for what it says are unpaid fees to use Port Sudan and its pipeline. Juba has said 650,000 barrels were seized in Port Sudan last week.

South Sudan's top negotiator Pagan Amum said Juba had been notified on Monday by the operator of the pipeline that the government of Sudan decided to take another 750,000 barrels of oil, ahead of new talks with Sudan in Addis Ababa.

"And a third notification that today the government of Sudan has also brought in another vessel to take a further 750,000 barrels. The government of Sudan as we speak has completed loading the...oil in to its vessels," he said.

"We have profound concerns that the government of Sudan and President (Omar Hassan) al-Bashir's recent unilateral actions is causing the collapse of this week's negotiations, he said.

North Sudan made no immediate comment but Bashir has said Khartoum would impose an unspecified fee as compensation for unpaid transit fees.

Sudan is demanding $1 billion for unpaid transit fees since July plus $36 a barrel in the future as transit fee, roughly a third of the export value of southern oil. Khartoum also wants Juba to share Sudan's external debt of $38 billion.

South Sudan pumps around 350,000 bpd, officials have said. Sudan produces 115,000 bpd in its remaining fields but needs it for domestic consumption.

Sudan's government is under pressure to overcome a severe economic crisis after losing the southern oil, which made up 90 percent of the country's exports. It generated $5 billion in oil revenues in 2010.

Juba has offered Sudan the sale of discounted oil and other financial help but neither side shows sign of shifting their positions.