Sudan, South Sudan finalize new financial, technical arrangements for oil cooperation
February 24, 2023 (KHARTOUM) — Sudan and South Sudan this week signed a number of financial and technical arrangements dealing with oil cooperation between the two countries.
In 2013, South Sudan agreed under the terms of the 2012 deal to pay Sudan $9.10 per barrel for oil in addition to a fee of $15 per barrel in fulfilment of a $3.028 billion package called transitional financial arrangements (TFA).
The TFA deal, which aimed to help Sudan after the loss of oil revenue as a result of South Sudan secession, was extended in December 2019 until March 2022.
On February 24, the two days signed an agreement on the technical arrangements related to transporting, processing and exporting the South Sudanese crude, the crude obtained by Sudan to supply the Umm Dabaker Electric Station and the Khartoum Refinery, in addition to settling financial issues.
The deals were inked by Sudanese acting Energy and Oil Minister Mohamed Abdallah Mahmoud, and South Sudanese Undersecretary of the Ministry Of Petroleum Mayen Wol Jong.
Mahmoud said that the agreements achieved great results and reached advanced stages in preparation for the final agreement between the two countries. He further added that the discussions took place in a smooth manner and with full transparency.
For his part, Jong stressed that the agreements aim to achieve the interests of the two parties, which enhances the spirit of cooperation for further development and work to increase oil production in the State of South Sudan.
Sudan works closely with South Sudan to develop its oil industry. Also, South Sudanese oil is produced via Port Sudan on the Red Sea.
After South Sudan gained independence in July 2011, Sudan lost 75 per cent of its oil production of 500,000 barrels per day(bpd).
After the eruption of the civil war in 2013, South Sudan’s oil production fell by about a third to an average 160,000 bpd.
On the same day February 24, South Sudan announced that oil production dropped to 140,000 bpd due to recent heavy flooding in the oil fields near the Sudanese border.
(ST)