Sudan and South Sudan strike oil exportation deal
ADDIS ABABA, Ethiopia (AP) — South Sudan and Sudan said Saturday they struck a deal over the south‘s exportation of oil through Sudan‘s pipelines and the distribution of oil revenues, two major stumbling blocks for long-term peace between the countries that emerged from decades of war.
A disagreement over oil sharing prompted South Sudan to shut down its oil production in January. Oil also sparked a dangerous military confrontation between the two countries in April when South Sudan captured the disputed town of Heglig, which is responsible for more than half of Sudan‘s oil production.
South Sudan said in a statement Saturday they will pay $9.48 per barrel to use one of Sudan‘s pipelines. Sudan had demanded that the south should pay $36 per barrel, the statement said.
Mutrif Sidiq, the official spokesman for Sudan‘s delegation in the talks in Addis Ababa told The Associated Press from Khartoum, that there was an agreement on the transit fees for two different pipelines, one transporting crude for export and another that is light crude oil that goes through a refinery before going to the port. One fee agreed to was $9.48, and another was for about $11.
“The deal is accepted by both sides. Even though
Read more: http://www.businessweek.com/ap/2012-08-04/sudan-and-south-sudan-strike-oil-exportation-deal
Category: South Sudan News
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
