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NEW DELHI: South Sudanese President Salva Kiir Mayardit on Monday called off his visit to India throwing off track New Delhi's plans to engage the new oil powerhouse of Africa and world's youngest nation. The visit was to happen at the invitation of PM Manmohan Singh who was supposed to hold talks with Kiir on Tuesday.
All preparations were in place for Kiir's visit, including a banquet in his honour by President Pranab Mukherjee on Tuesday, when the Indian side received a message from Juba that Kiir wasn't coming because of political exigencies at home.
The oil-rich country has been facing a political crisis since Kiir decided to sack his entire cabinet last month. He formed a new cabinet a couple of weeks later, but has been at loggerheads with his Parliament over appointment of his new deputy and other ministers. Kirr also recently approved investigations against some of his Army generals for extreme use of force in quelling a rebellion in the eastern part of the country.
The cancellation of Kiir's visit is still a disappointment, if not a setback, for India which is competing with China for influence in resource-rich Africa. ONGC Videsh Ltd (OVL) had invested around $3 billion in the undivided Sudan's oil sector picking up 25% stake in the Greater Nile Petroleum Operating Company, responsible for oil exploration and production. Only China National Petroleum Corp and Malaysia's Petronas have bigger stakes in the company.
OVL was in a bind last year after Juba shut down all production early last year after a tiff with Sudan over the issue of transit fee for oil exports. After its independence a couple of years ago, South Sudan walked away with almost 80% of the oil reserves of undivided Sudan but lacks processing capabilities and uses pipelines passing through its northern neighbour for exporting oil.
India was among the first country to recognize South Sudan after it became an independent nation in 2011. In fact, it was the first Asian country to open a consulate in Juba as early as 2007.
That Kiir's decision came at the last minute was evident when his foreign minister was quotes by agencies as saying, as late as on Monday, that South Sudan was looking forward to the visit. "We believe our economic future is not in our minerals, but in agriculture. So, strengthening ties with India will assist us in enhancing our agricultural production to guarantee food security for our people," he said, adding Indian technology in food production would help promote agriculture in South Sudan.
South Sudan president upsets India's plans - The Times of India
All preparations were in place for Kiir's visit, including a banquet in his honour by President Pranab Mukherjee on Tuesday, when the Indian side received a message from Juba that Kiir wasn't coming because of political exigencies at home.
The oil-rich country has been facing a political crisis since Kiir decided to sack his entire cabinet last month. He formed a new cabinet a couple of weeks later, but has been at loggerheads with his Parliament over appointment of his new deputy and other ministers. Kirr also recently approved investigations against some of his Army generals for extreme use of force in quelling a rebellion in the eastern part of the country.
The cancellation of Kiir's visit is still a disappointment, if not a setback, for India which is competing with China for influence in resource-rich Africa. ONGC Videsh Ltd (OVL) had invested around $3 billion in the undivided Sudan's oil sector picking up 25% stake in the Greater Nile Petroleum Operating Company, responsible for oil exploration and production. Only China National Petroleum Corp and Malaysia's Petronas have bigger stakes in the company.
OVL was in a bind last year after Juba shut down all production early last year after a tiff with Sudan over the issue of transit fee for oil exports. After its independence a couple of years ago, South Sudan walked away with almost 80% of the oil reserves of undivided Sudan but lacks processing capabilities and uses pipelines passing through its northern neighbour for exporting oil.
India was among the first country to recognize South Sudan after it became an independent nation in 2011. In fact, it was the first Asian country to open a consulate in Juba as early as 2007.
That Kiir's decision came at the last minute was evident when his foreign minister was quotes by agencies as saying, as late as on Monday, that South Sudan was looking forward to the visit. "We believe our economic future is not in our minerals, but in agriculture. So, strengthening ties with India will assist us in enhancing our agricultural production to guarantee food security for our people," he said, adding Indian technology in food production would help promote agriculture in South Sudan.
South Sudan president upsets India's plans - The Times of India
