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Khartoum to receive $183m from South Sudan oil companies


July 19, 2014 (KHARTOUM) - The Sudanese government and oil companies operating in South Sudanese oilfields have reached on Saturday an agreement whereby Khartoum will receive $183 million within two weeks from the oil companies in exchange for carrying oil through Sudanese territory.

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A Sudanese engineer points to a damaged section on an oil pipeline in Heglig on 23 April 2012 (Photo: Reuters)

On 28 June, Sudan’s government and companies operating in transportation of crude oil from South Sudan’s oilfields (blocks number 3 and 7) signed a framework agreement which allows Sudan to receive $366 million annually.

The oil companies agreed to pay $4 as transit fees instead of $1 besides agreeing to raise the barrel’s tariff from $5.5 to $19.8 for three years beginning from June 2013.

The two sides in a deal signed Saturday agreed that oil companies will pay $183 million within two weeks from the date of signing as settlement of its debt until June 2013.

The amount paid by each oil company was determined according to its shares in oil production.

Sudan’s oil minister, Mekkawi Mohamed Awad, predicted that the agreement would increase the government’s revenues from foreign exchange.

The oil ministry’s undersecretary, Awad Al-Karim Mohamed Khair, said the agreement detailed controls, payment systems, and entitlements of each company.

The oil companies’ shares include China National Petroleum Corporation (CNPC) with %41, Malaysian oil and gas company, Petronas with $40, Al-Kharafi group with %5, Thani pet with %5, and Sudan National Petroleum Corporation, Sudapet with %8.

Khair said the deal implementation will begin next September and lasts until the end of 2017, adding the government will own %95 of the pipeline by the end of the program while %5 will go to the oil companies.

Oil used to be the main source for Sudan’s budget until southern secession in July 2011, when Khartoum lost 75 percent of its oil production and its status as oil exporter overnight.


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  • 20 July 2014 06:26, by Mi diit

    SAD! Desperate and incompetent Kiir Kuethpiny has been robbed by Khartoum and oil companies in the broad day light, while Kampala is milking him from behind. He doesn’t exercise responsibility of a sovereign country’s president.

    repondre message

    • 20 July 2014 09:09, by Adodi Jotuwa

      Mi Diit,
      Who rebelled agajnst SPLM/A in 1991 and signed Khartoum Oil Agreement (KOA-1997), not Khartoum Peace Agreement (KPA) as Dr Fool Riek perceived it in exchange of being appointed President of South Sudan before dumping his illiterate follwers in Khartoun and returning to SPLM/A in 2002?Bashir said in their evening prayer that KOA is already dumped in de dustbin. Nobody should worry about Ri

      repondre message

      • 20 July 2014 09:20, by Adodi Jotuwa

        Bahir said "Let’s play our pllitical game wisely with Dr Fool Riek n other militia groups just to keep South Sudan distabilized for decades" adding dat "Riek will never rule South Sudan bcoz of his pllitical record. We use him even the West dat imposed sanction on us one day will even use him bcoz Junubins cannot govern themselves" Y KOA failed to mention Federalism? Y now?

        repondre message

      • 21 July 2014 01:49, by Mr Point

        Its good to see the problems of 1991 are finally being solved!

        When will it be possible to consider a solution to Kiir’s War, started in 2013?

        repondre message

  • 20 July 2014 09:09, by Pif Paf

    Bravo, well played GOS. The next step is the hardest, its very important that we utilize these new found riches wisely, i.e. strategic investments in Agriculture

    repondre message

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