Khartoum — Sudan has dropped its demand for financial compensation over oil assets South Sudan confiscated after its independence in July 2011, president Omer Al-Bashir announced on Friday before a meeting of African Union Peace and Security Council (AUPSC).
The two countries sealed nine agreements over disputed issues on 27 September but Khartoum's demand of $1.8 billion as financial compensations for the confiscation of Sudapet assets in South Sudan had been left unresolved.
"As a show of good faith, and in response to their request, I announce that Sudan has dropped its arbitration suit," Bashir said at the AUSPC meeting on in Addis Ababa at the level of heads of states and governments.
Sudanese foreign minister Ali Karti told the official SUNA that Khartoum dropped this issue to allow the resolution of other financial and economic issues like international pledge to support Sudan after the loss of oil income when the South Sudan become independent state.
Juba in the past refused the Sudanese demand saying it was normal to take the control of the Sudanese assets after its independence as sovereign state.
Also the South Sudanese government demanded Khartoum to drop this demand before its participation in an international campaign to support Sudan's demand to cancel some $40 billion of external debt.
Sudan also stopped demanding compensation for the damage of oil installations in Heglig after its ten-day capture by the South Sudanese army in April 2012.