South Sudan Minister of Petroleum says the Cooperation Agreement signed in 2012 with the Sudan has been extended for another three years.
The agreement which comprises of many areas of cooperation between between the two countries, was signed to cater for trade, oil shares, border demarcation, military arrangements and the political road-map for resolving issues such as of Abyei Area.
On oil, the agreement provides that South Sudan pays 24.5 US dollars per barrel in oil transit and financial compensation to Sudan after independence of the South. Average of 9.5 US dollars per barrel is for transit fees while 15 US dollars is for financial compensation.
The money was to be paid to Sudan over three and half years ending this month. Other provisions include border demarcation, cross-border freedoms and mutual cooperation.
South Sudan Minister of Petroleum, Ezekiel Lol Gatkuoth, says the whole agreement has now been extended until the end of 2019.
The extension provides that oil transit fees will depend on the international market prices. But within this time, South Sudan will complete the payment of the financial package of roughly three billion US dollars. They also agreed to review the transitional financial arrangements.
Mr Lol signed on behalf of South Sudan while his counterpart Mohamed Zayed Awad signed on behalf of the Sudan.
The two countries also signed a Memorandum of Understanding for resumption of production in Unity and Therjas oilfields. Mr Lol said Sudan will allow South Sudan to use the power station at Heglig.
They also agreed that Sudan will provide capacity building for staff and oil workers in South Sudan and also provide materials required for the resumption of production in the fields that are not operational now.
Ezekiel Lol says the parties have also agreed to jointly provide security for oilfields and its workers.