Wednesday, December 1, 2021

Sudan Tribune

Plural news and views on Sudan

Foreign firms to pay Sudan $14 per barrel as transit fees for South Sudan oil

Sudanese oil engineers work on a main oil pipeline in Heglig oilfield, May 2, 2012. (Reuters photo)
Sudanese oil engineers work on a main oil pipeline in Heglig oilfield, May 2, 2012. (Reuters photo)

September 19, 2018 (KHARTOUM) – Sudan’s ministry of petroleum Wednesday signed an agreement with three oil companies operating in Sudan and South Sudan providing to pay a transit fee of $ 14 per barrel.

The deal which was signed in Khartoum includes the China National Petroleum Corporation (CNPC), the Indian Oil and Natural Gas Corporation and Malaysian Petronas.

The fees they will pay is related to the processing and transportation through the government owned-pipe line from Heglig to Port Sudan of their share oil production from blocks 1, 2 and 4 which resumed recently.

The deal was inked by the undersecretary of the petroleum ministry Bakheit Ahmed Adallah and, representatives of the three companies in the presence of the oil state minister Dahiya Awad al-Nil and other officials.

In a statement released after the signing ceremony, Minister of Oil and Gaz Azhary Abdel Gadir said the agreement will be applied with retroactive effect from the independence of South Sudan in July 2011.

Azhary further said the oil fields in the Unity region will resume production by the end of the current year adding that Sudanese oil workers continue to repair oil infrastructure facilities for the benefit of both countries.

Blocks 1, 2 and 4 have now become fully operational, producing 45,000 barrels per day.

(ST)