Sudan and South Sudan Reach Oil Agreement
After a meeting in Addis Ababa, Ethiopia, Sudan (North) and South Sudan reached a deal on oil transit fees, which is seen as a momentous step towards peace between the two.
They still have to settle the border security issue before oil will once again flow through Sudan’s pipeline for export.
In January Juba began shutting down its crude production for export through the northward bound pipeline as Sudan started seizing oil in what it said was unpaid transit fees. Khartoum wanted $36 per barrel, for the south to ship its crude through the pipeline.
According to a Reuters report Juba would pay an average of under $10 per barrel. It has also offered a $3.2 billion package to compensate Sudan for the loss of most of its oil reserves to the South. It had previously offered $2.6 billion.
The deal will only be implemented after the security issues have been resolved according to Khartoum.