No halt in oil flows - government

The Sudanese government on Thursday denied claims by southern rebels to have attacked a major oil rig in southern Sudan, cutting off the flow of oil to the north. "This is a figment of someone's imagination," Muhammad Ahmad Dirdeiry, charge d'affaires at the Sudanese embassy in Kenya told IRIN. "There was a very minor attack which has been repulsed." A statement from the Sudanese People's Liberation Movement/Army (SPLM/A) office in Cairo claimed that rebel forces had penetrated the oil production and pumping complex at Heglig early on Monday and "destroyed the main station for pumping crude oil from the south to the north". The installation at Heglig, western Upper Nile (Wahdah State), accounts for the bulk of Sudan's oil production, currently running at around 240,000 barrels per day, and is operated by the Greater Nile Petroleum Operating Company, a consortium of Chinese, Malaysian, Sudanese and Canadian companies, according to AFP. The consortium's Canadian member, Talisman Energy Corp., also denied the rebel claims. "There was no attack, there was no battle," Ralph Capeling, Talisman general manager in Khartoum, was quoted as saying by Associated Press on Wednesday. Talisman has been heavily criticised by church and human rights groups for its involvement in Sudan. They say thousands of civilians have been forcibly displaced from western Upper Nile to make way for oil exploration. The SPLM/A has accused Khartoum of using oil revenues for arms purchases, and says the oil installations are legitimate targets in Sudan's 19-year civil war. "The SPLM hereby reiterates its warning to oil companies and asks them to halt oil production until just peace is realised," the SPLM/A statement said. The rebel claims come at a time when mediators are attempting to revive crucial peace talks which have been suspended since 2 September. Chief mediator, General Lazarus Sumbeiywo of Kenya, met with government authorities in Khartoum on Tuesday, to discuss proposals for a return to the negotiating table, including an offer from the SPLM/A to suspend military actions during talks. Should talks resume, the issue of wealth sharing, including the distribution of oil revenues, is expected to be discussed. Government negotiators walked out of talks being held in Kenya, the day after rebel forces captured the key southern town of Torit, Eastern Equatoria. Since the talks broke down, fighting has intensified in parts of the south, with government forces reportedly attempting to recapture Torit, and to gain territory in the disputed transition zone of southern Blue Nile.