Home | News    Sunday 1 October 2017

Khartoum and Juba agree over resumption of oil production

separation
increase
decrease
separation
separation

September 30, 2017 (KHARTOUM) - Juba has agreed with Khartoum to resume production from the oil field in the Unity region, after boosting the security of the troubled region near the Sudanese border.

JPEG - 53.6 kb
A worker at the power plant of an oil processing facility in South Sudan’s Unity state on 22 April 2012 (Photo: Reuters)

The agreement has been finalised last week after talks between a visiting delegation of senior South Sudanese officials with their counterparts in the oil and trade ministries.

Speaking at a press forum held in Khartoum on Saturday, South Sudanese Ambassador Mayan Dut Waal disclosed that the two countries agreed to restart production of the oil fields in Ruweng and Northern Liech states.

Sudan will provide power and technical support to resume the production which has been stopped since December 2013.

Waal stressed that the security situation in the region is now stable, adding the government forces are in control of over 80 of the South Sudanese territory.

He further expressed hope to increase oil production to over 300,000 bpd instead of the current production rate which is 130,000 bpd.

The diplomat pointed out that 98 per cent of South Sudan’s revenue comes from oil sales, adding this makes dealing with Khartoum "inevitable" because his country relies on the Sudanese pipeline to export its oil production.

Following the collapse of oil price, the two countries agreed to review a deal reached in 2012 providing that Juba pays 15 dollars for every exported barrel. According to the new deal, the rate of the Sudanese government is flexible and determined according to the oil prices.

“If the price of the oil is like $30, we pay zero, if it is $40, we pay like $9 or $6, and so on and so forth and if it is above $61, we pay $15, so we have a cushion,” South Sudanese Oil Minister Ezekiel Lul Gatkuoth told Bloomberg in February 2017.

Ambassador Waal also explained that the two countries signed another deal providing that will start exporting 54 products to South Sudan within the framework of the trade border deal.

He added that in the near future Sudan will export 173 products through five border crossing points.

The agreement will reconnect the South Sudanese regions again with the north Sudan as the two parts of former Sudan used to trade before the secession in 2011.

Sudanese trade minister Mubarak al-Fadel announced last week that customs and border authorities will meet to discuss the operationalisation of the crossing points.

Also, it was agreed that the Sudan Central Bank branch in Kosti will facilitate the financial transactions related to the border trade between the two countries.

(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.
  • 1 October 2017 16:03, by Newsudan

    A cow with a lot of milk,very controversial oil between North and South

    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


Will uprising in Sudan provide a new political dispensation? 2019-04-20 06:25:31 By Luka Kuol* The recent wave of uprising in some African countries shows the new means of contesting the African rulers who stayed in power for so long and are hardly to be unseated through the (...)

Sudan’s Uprising: Dealings with remnants of al-Bashir 2019-04-16 21:14:38 By Mahmoud A. Suleiman From the outset, the people of Sudan who have been demonstrating in their glorious popular rebellion for over four months categorically reject the Reproduction or (...)

Sudan’s third civilian uprising and the fourth military coup i 2019-04-16 13:12:52 The third civilian uprising and the fourth military coup in Sudan history ended up with the downfall of Omar Hassan El Bashir after nearly 30 years in power. By Lul Gatkuoth Gatluak The news (...)


MORE






Latest Press Releases


South Sudan’s Lafon youth condemn killings of civilians by Pari community 2019-04-03 21:54:29 Press Statement on the Fighting between Pari/ Pacidi and Lotuko/Lokiri on 24/3/2019 Release by The Lafon County Youth Union: We, the Lafon County Youth Union hereby condemn the atrocities and (...)

Joseph Malwal Dong joined the SPLM/A -IO 2019-04-02 08:35:02 SPLM/A (IO) Press Release 1/4/2019 On Hon. Joseph Malwal Dong Joined the SPLM/A (IO) The leadership of the SPLM/A (IO) would like to seize this precious opportunity to announce to members and (...)

Sudan Protests: Investigate the custodial death of three University students 2019-03-13 12:53:14 The African Centre for Justice and Peace Studies (ACJPS) Sudan Protests: Urgent call for investigations into the custodial death of three University students and alleged torture of detainees by (...)


MORE

Copyright © 2003-2019 SudanTribune - All rights reserved.