Offering grave signs that Sudan may slide back into war, the southern Sudanese military is repositioning its forces toward the country's tense north-south border, and it alleges that the north is building up its troops on the other side, according to internal U.N. documents obtained by McClatchy Newspapers.

Southern Sudan wants to control its oil supply after becoming the world's newest nation in only a month's time, but already an apparent dispute with the north has sent fuel prices skyrocketing here and prompted fist fights at gas stations.

South Sudan's ruling party said on Friday 13 May 2011, it would not recognise an election in the north's main oil state and would not serve in its parliament or government because it said Khartoum rigged the vote.

The new state of South Sudan that will officially see the light in less than three months is exempt from the decade-long sanctions imposed on the entire country, the United States said on 12 April 2011.

A hospital has been built in Bentiu town by Chinese investors. It was opened on 5 April. China is strengthening its ties with the Government of South Sudan (GoSS) ahead of the declaration of South Sudan’s independence on 9 July 2011. China is one of the foreign countries in oil drilling in Sudan.

Report on the 2-day conference 'Sudan's Oil Industry after the Referendum' held in Juba, December 2010.It contains recommendations with regards to the post-referendum arrangements, petroleum policy, company-community relations, compensation, transparency, security, land rights and the environment.

The net revenues of Sudan’s oil in January has reached 461.43 million US dollars of which the Government of South Sudan (GoSS) will receive 192.78 million including 47.16 million of the domestically-sold crude oil.

Oil exploration in Sudan continues despite major political changes. In Bentiu, one of the oil companies jumped on the euphoria train, celebrating the referendum outcome with Southerners, promising better life standards in the region.

As north and south Sudan prepare to start talks next week on how to divide and fairly manage their oil wealth -- a vital revenue source and a cause of mistrust -- analysts say cooperation, not conflict, may prevail.

South Sudan will examine alternative outlets for its oil exports if it makes any new discoveries, so as to break its reliance on infrastructure that ties it to the north, the ruling party said.