South Sudanese government says will pay Sudan unpaid arrears in kind

February 7, 2016 (JUBA) – South Sudanese government said Sunday it has reached an understanding with the government of neighbouring Sudan to pay in kind as a payment for unpaid arrears which accumulated from oil transport deal between the two nations.

South Sudanese minister of petroleum, Stephen Dhieu Dau, told Sudan Tribune on Sunday that his government had agreed with the government of Sudan to settle unpaid arrears by giving oil instead of cash.

“A consensus has been reached that the government of the republic of South Sudan will not be paying cash to Sudan but in kind as payment for the accumulated unpaid arrears,” said Dau.

Minister Dau did not say how much money the government owed Sudan to be paid in kind and how many barrels of crude oil will be given and for how long the payment will continue.

He confirmed arrangements that the government will also be giving Sudanese government oil for a new power plant in Um Dabakir area in the While Nile state.

Also, South Sudan will also provide crude oil to Sudan to produce electricity for Khartoum refinery where crude oil is processed for the local market.

Last week the Sudanese oil ministry announced that South Sudan will provides Sudan
with 28,000 barrel of crude oil per day to be used in power production and cover its local needs.

In line with the signed deal; 18.000 barrel oil crude per day will go to the power plant in the White Nile state and 10.000 barrel of oil crude will be supplied to Khartoum refinery in order to meet a growing demand for petroleum products.

The two once one, but split countries last week agreed to review the charges paid to Sudan for transporting the oil from South Sudan through its Port Sudan.

(ST)