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South Sudan optimistic of averting economic collapse


March 3, 2015 (JUBA) – South Sudan said it was optimistic it’s northern neighbour, with which it signed the 2012 Cooperation Agreement, will not allow its economy collapse.

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South Sudan minister Stephen Dhieu Dau (Getty photo)

This was revealed by South Sudan’s petroleum minister, Stephen Dhieu Dau after meeting a Sudanese delegation led by his counterpart, Mohamed Awad.

Dau said his government requested Sudan to reduce the current charges imposed on crude oil transported through the latter’s territory.

The move, he said, was as a result of global fall in oil prices which has badly affected the South Sudanese largely oil-dependent economy.

An African Union mediated deal after South Sudan’s secession from Sudan in July 2011 allows the former transport its crude oil using pipelines passing via Khartoum’s territory to international markets.

Currently, Juba pays Khartoum $25 per barrel for oil it transports through Sudan. The payment is meant to expedite the repayment of a $3 billion compensatory package, which South Sudan agreed to pay its northern neighbour after seceding in July 2011.

“It is good we have started discussions because this will be the mechanism through which we will be able to understand ourselves better, especially what we are asking the government of Sudan. We are asking them to reduce charges,” Dau told reporters.

“We agreed to hold frank discussions in the next meeting,”he added.

Dau said the Sudanese government will not allow South Sudan’s economy collapse.

“Sudanese people have special values, cultures and traditions which are compassionate,” he said, emphasing the importance of stronger ties between the two nations.

South Sudan heavily relies on oil to fund up to 98% its budget. Oil production in Unity state closed in December 2013 when rebels overran the production fields and reduced oil output by a quarter.


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  • 3 March 2015 21:30, by Thokidine

    I advice Sudanese delegate as well as their president Bashir not to give hand in this negotiation coz the oil money is what Ssudanese are financing Uganda who afterward finance Toora Boro to overthrow Him (Bashir). Let it collapse economically coz the monies derived from this resources is being use to buy arms and hire mercenaries like poor Uganda to kill n commit atrocities instead of dev’t ..

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  • 3 March 2015 22:19, by Bentiu Sudan

    Sudan Government,

    Please do not accept this request made to you by visionless, tribalist, and power hungry officials from South Sudan. Be informed that S. Sudanese uses oil money to buy arms for SPLA-N Nuba Mountain, SPLA-N- Blue Nile, and Justice and Equality Movement in Darfur. If the S. Sudanese do not like the current charged price, then let them close their oil.

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  • 3 March 2015 23:31, by lino

    Hahaaaaaa! Minister Dau do started to believe these NCP? Hahaaa. you didn’t tell us what are you giving in order Sudan helps South Sudan Economy.
    Did you sell out the boarder?
    Did you sell out Abyei Area?
    Did you sell SPLM/A-N and Darfur issues?
    Or did you sell out the freedom fighters?

    In order to get helped; you must give in return.
    Days will tell brother....

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  • 4 March 2015 05:46, by Eyez

    I guess Khartoum is not going to sympathize with your gibberish, you people never explored an alternative, apart from bogus plans, which never left your dusty shelves, what happened to the East African Pipeline project? Or was it another scum to embezzle developmental dollars..huh!

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