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FINANCIAL NEWS
Sudan, South Sudan ink oil cooperation agreement
05 Aug 2012
(MENAFN) In a sign of reconciliation between Sudan and newly independent South Sudan, both countries inked a deal to transport the south’s crude through Sudan’s pipelines, AP reported.
In January, South Sudan shut down its oil production after accusing Khartoum of stealing oil shipped through Sudanese pipelines for export. Sudan said it had taken the oil in lieu of transit payments for the use of its pipelines. The decision has cost both governments millions of dollars in revenue, further burdening their weak economies.
Also an act of South Sudan, when it captured the disputed town of Heglig, which is responsible for more than half of Sudan’s oil production, threatened to ignite a new war between the two sides.
South Sudan said in a statement Saturday they will pay USD9.48 per barrel to use one of Sudan’s pipelines. Sudan had demanded that the south should pay USD36 per barrel, the statement said.
Sudan and South Sudan are currently in talks in Ethiopia, hosted by the African Union over a number of issues, including the separation of their once-unified oil industry and the demarcation of the long, joint border.
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