Sudan, South Sudan Strike Oil Compromise


Officials in Sudan and South Sudan have ended a conflict that has been looming over the two countries since the beginning of the year. In an agreement that the Associated Press reports will last for three and a half years, the neighboring countries will work together to sell oil.

A disagreement over oil sharing prompted South Sudan to shut down its oil production in January. Oil also sparked a dangerous military confrontation between the two countries that threatened to become all-out war in April when South Sudan captured the disputed town of Heglig, which is responsible for more than half of Sudan's oil production.

South Sudan said in a statement Saturday they will pay $9.48 per barrel to use one of Sudan's pipelines. Sudan had demanded that the south Should pay $36 per barrel, the statement said.

Mutrif Sidiq, the official spokesman for Sudan's delegation in Addis Ababa told The Associated Press from Khartoum, that there was an agreement on the transit fees for two different pipelines, one transporting crude for export and another that is light crude oil that goes through a refinery before going to the port. One fee agreed to was $9.48, and another was for about $11.

"The deal is accepted by both sides. Even though it falls below the expectations of both sides, it constitutes a middle ground," he said by telephone.


Read more at the Associated Press.

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