Home | News    Sunday 29 June 2014

Sudan seals new agreement with Petrodar on transit fees

separation
increase
decrease
separation
separation

June 28, 2014 (KHARTOUM) – The Sudanese government and Petrodar oil company signed an agreement on Saturday, by which the latter pays $19.8 per barrel of oil flowing from oilfields number three and seven in South Sudan that ends up in Port Sudan export terminal on the Red Sea.

JPEG - 12.7 kb
South Sudanese security forces wait outside the control room of the Petrodar oil facility in Paloich, Upper Nile (AFP)

The deal provides for the payment of $366 million annually to Khartoum starting retroactively from June 2013, which is the date Juba resumed exporting its oil through Sudanese territory.

Petrodar is a consortium comprised of five companies including China National Petroleum (CNPC), Malaysia’s Petronas, Sudan’s Sudapet, China’s SINOPEC and Kuwait’s Tri-ocean Exploration and Production.

It operates in oilfields located in South Sudan’s Upper Nile state.

Khartoum and Juba were locked in a dispute over oil transit fees which led to the suspension of oil production in South Sudan. The issue was resolved in March of last year.

The Sudanese oil minister Makkawi Mohamed Awad said in press statements on Saturday, following the signing of the agreement, that his country’s efforts succeeded in persuading its partners in these oil companies to boost the transit and processing fees.

He disclosed that Petrodar agreed to raise transit fees to $4 from $1, and tariffs from $5.5 to $19.8 adding that the company wanted to help Sudan offset the loss of South Sudan’s oil following its independence in July 2011. The agreement will expire in 2017.

Awad said three more agreements will follow in the next two weeks regarding payment methods and other financial technicalities. This pact will also help resolve debt owed by Khartoum to several oil companies and other international organizations.

Half of the proceeds will be used to pay off the debt and the remaining half will go into Sudan’s treasury, he added.

Sudan owes CNPC $1.3 billion which represents the value of oil the government bought from it since the country’s breakup up till end of 2013.

The Sudanese official said that currently 200,000 barrels of oil pass through these pipelines on a daily basis from South Sudan. However. But other reports puts the figure at 150,000 particularly after the outbreak of the conflict in South Sudan.

The minister praised the support of these oil partners as well as China and Malaysia to his country. He also that these companies will continue their exploration efforts the town Kosti and the Blue Nile state in blocs 7 and 8.

The Sudanese state minister of Finance Abdulrahman Dirar said the agreement will contribute to improving the Sudanese pound exchange rate against foreign currencies.

He said that his country will work to employ the proceeds from the deal, according to current priorities to support productive sectors and infrastructure.

Sudan lost three-quarters of its oil production when South Sudan became independent , worsening an economic crisis as oil was the government’s main source of revenue, providing the cash flow to fund food imports and other basic items.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 29 June 2014 08:56, by Snipper

    Is it Petrodar that determine fees or government of south sudan? Stop fabricating things to suit your fake propaganda. Nuer oil was shut down long time ago in Unity state and there is no need of making wild propaganda on net! Enjoy your violence attitudes

    repondre message

Comment on this article


 
 

The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


A path toward wealth and security: Investing in the health of Africa’s people 2016-08-28 10:17:30 By Jim Yong Kim Africa needs much more investment from the private sector to build its roads, energy and communications infrastructure. But for countries to make the most use of that (...)

South Sudan, a year after peace agreement 2016-08-20 21:39:17 By Beny Gideon Mabor “Our detractors have already written us off, even before the proclamation of our independence. They say we will slip into civil war as soon as our flag is hoisted. They (...)

Sudan Crisis: Who would be accountable for? 2016-08-18 09:11:56 A case sufficiently exposed, squarely tabled but evasively torpedoed with ulterior motives By Trayo Ahmed Ali As Sudan National Dialogue "roadmap" (proposed by the AUHIP Panel) was signed in (...)


MORE






Latest Press Releases


Sudanese students, activists are at risk of torture: HRW 2016-05-25 14:40:51 Human Rights Watch Sudan: Students, Activists at Risk of Torture Free Detainees; Investigate Abuses (Nairobi, May 25, 2016) – Sudanese national security officials have detained dozens of (...)

South Sudan: Civilians Killed, Tortured in Western Region 2016-05-24 22:01:01 Human Rights Watch For Immediate Release South Sudan: Civilians Killed, Tortured in Western Region Provide Justice for Army Abuses in Western Regions (Nairobi, May 24, 2016) – South Sudanese (...)

Open Letter to President Salva Kiir and 1st Vice President Dr. Riek Machar 2016-04-18 12:36:12 South Sudan Women United April 15, 2016 Your Excellencies: South Sudan Women United writes to congratulate you both on the steps you are taking towards ending violence in South Sudan and (...)


MORE

Copyright © 2003-2016 SudanTribune - All rights reserved.