4 August 2012

East Africa: Sudan Confirms Oil Agreement With South Sudan

Photo: Issac Billy/UN
South Sudanese citizens show support for their government's decision to shut down all national oil production, effectively cutting off the flow of crude oil from South Sudan to Sudan (file photo).

Khartoum — Sudanese negotiating team confirmed that they reached an agreement on oil transportation fees but did not provide further details.

The agreement include the pipeline, marine terminal, processing and transit fees.

Mutrif Sidiq, spokesperson of the government delegation in Addis Ababa told SUNA that the two parties have reached "reasonable" understanding on oil issue yesterday.

He added the agreement does not satisfy the ambition of both parties, stressing that it will be implemented once an agreement on the security arrangement is reached.

Sudanese media say Juba agreed to pay $25.80 per barrel, but there no confirmation from the mediation or the two parties.

Juba shut down oil production last January after accusing Sudan of stealing its crude. The resumption of oil exportation needs some months of preparations oil experts say.

The talks will resume, according to Mutrif, after Eid al-Fitr within three weeks.

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