The Republic of South Sudan
Juba, 4 August 2012: The Government of the Republic of South Sudan has protected the interest of its people. Throughout the negotiations South Sudan insisted that its oil would not flow through the Republic of Sudan unless and until it was subject to fair commercial pipeline tariffs, processing and transit fees.
Throughout the negotiations the Government of Sudan tried to extort South Sudan by attempting to charge exorbitant fees for the export of its oil. Sudan went as far as stealing South Sudan’s oil in December, January and February. Your government responded with strength and resolve, and those responses have now paid off.
At their most extreme, Sudan demanded South Sudan to pay $36 per barrel in combined fees. Your negotiation team, however, has secured a deal where South Sudan will pay on average $9.48 a barrel.
To arrive at this deal South Sudan only had to make minor concessions. The Government of Sudan was demanding pipeline tariffs and terminal fees of $25, but under the deal RSS will be paying $8.4 and $6.5 for GNPOC and Petrodar respectively. This is only $1 more per barrel, than RSS had previously offered. Sudan demanded $6 in transit fees, but under the agreed upon deal RSS will only pays $1 per barrel in transit fees for both pipelines. The positions of Sudan and South Sudan, and the agreed deal are summarized in the following tables:
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