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Sudan and South Sudan extend oil transit deal until 2022

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November 27, 2019 (KHARTOUM) - Sudan and South Sudan agreed on Wednesday to extend the agreement on the transit of oil for export through Port Sudan on the Red Sea until 2022.

Hamid Suleiman Hamid the Undersecretary of the Ministry of Energy and Mining told Sudan Tribune that the talks discussed the renewal of the agreement on the oil transit through the Sudanese ports as well as the resumption of oil production of the Thar Jath field in the Unity region.

"We have reached great understandings by agreeing to extend the agreement on the transfer of crude until March 2022," he added.

Last October, Juba indicated that it would renegotiate the 2012 oil deal with Khartoum because it would not be able to meet a December deadline of $ 3 billion agreed to help Sudan to cover the financial gap created by the independence of South Sudan in 2011.

Further, the deal which was struck in August 2012, provides that the landlocked country would pay a pipeline transit fee of $9.48 per oil barrel to transport its crude through Sudan.

The South Sudanese negotiating team headed by Mayen Wol Jong the Undersecretary of the Petroleum Ministry arrived in Khartoum on Monday.

The agreement was signed by Undersecretary of the Ministry of Energy and Mining Hamid Suleiman and his South counterpart Jong.

On the settlement of outstanding debts between the two countries amounting to $ 661 million, Suleiman said that talks will resume next week after consultations with the governments of the two countries.

"We have asked the South Sudanese government to pay the remaining amount in kind."

Suleiman pointed out that the South Sudanese government proposes to it with the pipeline transit fee to become $15 per oil barrel.

"There must be an agreement on the method of payment before the end of December," he further said.

For his part, Jong in statements to Sudan Tribune stressed on the importance of extending the agreement in the interest of both countries. He further added they are ready to discuss all obstacles.

Regarding the re-operation of the Thar Jath field, he said that they have asked the Sudanese side to assist in completing the technical procedures for its re-operation.

Also, he pointed to the need to transport the machines from Port Sudan to the field and the start of technical works on the second of next December.

On the settlement of outstanding debts, the South Sudanese official said that Juba had paid $ 2.4 billion and the rest would be paid in the future particularly after the increase of oil income with the resumption of production of Thar Jath field.

Further, he did not rule out an agreement on the method of payment in the upcoming round of talks.

South Sudan provides Sudan with 28,000 barrel of crude oil per day to be used in power production and cover its local needs.

In February 2016, the two Sudans agreed that the South will provide the North with 28,000 barrel of crude oil per day to be used in power production and cover its local needs.

According to the deal, which was seen as a solution to the payment of Sudan transit fees and the three billion support, 18.000 barrel oil crude per day go to Um Dabakir power plant in the While Nile state while additional 10.000 barrel of oil crude are supplied to Khartoum refinery.

The price of the oil crude has been calculated according to the international market.

(ST)

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Kind regards,

The Sudan Tribune editorial team.
  • 28 November 2019 18:17, by Khent

    We lost millions of people to half-caste ’Arabs’, and we pay them "compensation"!? Those disgusting animals in Juba deserve death a million times over for this and for every other failure, crime, myopia and incompetance. Please keep this up; keep up the cruel and institutionalized practice of refusing to pay civil servants and soldiers for more than half of the year...

    • 28 November 2019 18:25, by Khent

      ..and we will all celebrate when soldiers rip you from your beds and shoot you dead. Any and all negotiations with the North should be suspended until there is at least the semblance of recovery. Only these maligant, empty-headed chimps would open ’negotiations’ from a position of infinite weakness. Centuries of resistance have been rendered void...

      • 28 November 2019 18:38, by Khent

        ..We will all die as long as they live; we will be on our knees as long they stand. These death-deserving traitors should end this totally needless, unjustified and terribly destructive war and re-focus that energy, resources and efforts to something actually worthwhile -> building refineries and diversifying the ’economy’...

        • 28 November 2019 19:15, by Khent

          ..Ethiopia is eager to purchase over $3 billion dollars in refined petroleum from South Sudan annually, and we should do everything to materialise this mutually beneficifial arrangement. Subsidizing the occupation of tens of thousands of km2 of your own territories makes absolutely no sense...

          • 28 November 2019 19:26, by Khent

            ..The only reason anyone (capable of sentient thought) would agree to this humiliating arrangement is if they intend on reneging on it in short order when more favourable conditions and opportunities are actively engineered or allowed to present themselves.

            • 28 November 2019 19:41, by Khent

              ..Applying for observer status in the Arab League and being unjustifiably chummy with Arab countries like Egypt, was apparently not revolting enough; ever more sadomasochistic obedience will be displayed. We have thoroughly shamed our ancestors and deserve every indignity and suffering that follows.

              • 29 November 2019 14:03, by Fathi

                I don’t see the problem. The deal is mutually beneficial at the moment. South Sudan is landlocked. The country doesn’t have money at the moment. Oil pipelines through ethiopia and Kenya haven’t finished. The international community is broke so they can’t fund south sudan at the moment.

              • 29 November 2019 14:09, by Fathi

                In regard to the Arab league, this could lead to opportunity for investment in South Sudan and possible debt relief. I get that you hate north Sudan, justifiably so, but we have the person that killed our brothers in South Sudan in jail. Also, we were run by military dictators 90% of the time since independence. We did not elect Bashir, he took office through a coup.

                • 29 November 2019 14:13, by Fathi

                  We did not want war in the South. It was not our choice. I will admit there is significant racism in Sudan that is due to the lasting effects of colonization, greed, and self-hate. Give us time to rectify our ways so we can get back in touch with our African roots.



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