×

Our award-winning reporting has moved

Context provides news and analysis on three of the world’s most critical issues:

climate change, the impact of technology on society, and inclusive economies.

N. Sudan to accept fees to transit south's oil

by Reuters
Thursday, 16 June 2011 15:25 GMT

* About three-quarters of Sudan's oil production in south

* Pipelines, terminals mainly located in the north

KHARTOUM, June 16 (Reuters) - North Sudan has agreed to accept transit fees from the south to export southern oil after the south splits off into a new country on July 9, but the sides have yet to set the price, the north's oil minister said on Thursday.

About three-quarters of Sudan's output of roughly 500,000 barrels per day comes from the south, but most of the terminals, pipelines and refineries are in the north.

Khartoum now receives about 50 percent of the revenues from oil found in the south under a 2005 peace deal that ended decades of civil war between the two sides.

Petroleum Minister Lual Deng told reporters the two sides had agreed during a meeting last month in Addis Ababa that the south would pay a usage fee rather than continuing the revenue-sharing deal.

The sides have yet to settle how much the fee should be, and are still discussing a "transitional arrangement" which would ease the financial impact on the north from losing oil revenues from the south, Deng added.

"We don't know whether there will be some agreement with the transitional arrangement ... For the time being, it is a fee for transporting the oil," Deng said.

Khartoum, facing some ${esc.dollar}38 billion in debt and rising inflation, is under pressure to find alternative revenue sources to make up for the loss of the south's oil after the split.

Deng, a southerner appointed to the post last year, said on Wednesday the north was planning to increase production at several oil fields and explore untapped concessions to help offset the loss. [ID:nLDE75E1JH]

Southerners voted to secede in a January plebiscite promised by the 2005 peace deal. North and south warred for decades over resources, ideology, ethnicity and religion. (Reporting by Alexander Dziadosz)

Our Standards: The Thomson Reuters Trust Principles.


-->